We have been taught that appraisal solved one problem: the opinion of value. We were taught an “appraisal process” (now a “Valuation Process”). The process is called a procedure. It goes like this:[1] Identify the problem Decide on your scope of work Collect the data and describe the property Analyze the data (include market analysis) […]
If your work is reliable, it’s credible. If it’s credible it may not be reliable. USPAP (Uniform Standards of Professional Appraisal Practice) defines credible as “worthy of belief.” So how does one strive to be worthy? Well the automatic answers are . . . automatic: 1) have education/training; 2) have experience; 3) have integrity. Let’s […]
Bank regulators are nearing a decision to raise residential real estate transactions appraisal threshold to $400,000 from $250,000, for certain transactions. Perhaps it should be set to $2million, or $5million. It strikes me that we have two separate taxpayer regulatory/administrative/quasi-governmental organizations working in opposition. On one hand we have the Appraisal Subcommittee and The Appraisal […]
As an appraiser, it is time to look forward to this next year. For me, it seems looking forward always means looking backward. Oh well. Perhaps life is just like the appraisal process. We are asked to predict forward—based on the past market sales. Sometimes I wonder if a present even exists. Just as soon […]
New Year’s resolutions are certainly good, even great wonder and intent. I have made a few. I don’t remember any ever working out. But some things did work out. I ask: What was the difference? The difference is between January 3rd and December 28th. Generally, I had resolved to make some resolutions right away, on […]
We are taught that our work must have believability: as per USPAP, credible means “worthy of belief”. Let’s look here at the difference between credibility and reliability. It must be important. It’s used in the actual standards (integrity and performance) part at least 59 times. If you include the whole USPAP 2018-2019 book, it is […]
What kind of appraiser are you? Different appraisers have different attitudes! Some have a lot of experience, others a lot of education. Others emphasize the ‘art’, while others consider themselves ‘quants’. Let’s put aside the ‘art’ versus ‘science’ discussion, where the artists say: “No computer will ever replace the appraiser”, or “No amount of education […]
I searched the words: support and prove in both USPAP and in The Appraisal of Real Estate”. Interestingly, the word prove is not found in either document in this context. The fuzzier word support is found throughout both. The word ‘support’ seems to support supporting your opinion. How is the word “support” used in the context […]
The appraiser is supposed to be accurate. What is “accurate”? Dictionary meanings say accuracy is “the condition or quality of being true, correct, or exact.” Tell the truth. Can it be? Hmmm. A search for truth. OK. So how do we come to know the truth? Are we supposed to be paid truth-seekers? Cool. I […]
Editor’s Note: Check out the post from November 26th, 2019 here: Does Gratitude Make Me Money? Why should I have gratitude? Ugh! My clients want me to hit the number . . . And be ethical about it! Pressure, pressure, pressure. For me, the problem was the way I looked at things. I saw gratitude […]
Is the science different from the old routine – “support your opinion”? It kinda sounds like the same thing. Of course. No real difference. But is it possible there a difference in the thinking process? Would a scientist think about the problem differently? First, let’s be clear on one thing. We get paid for four […]
Appraisers provide clients a point value. From two weeks ago. An opinion. What clients need: A forecast, a risk analysis, an underlying “fundamental” value; annual and spot update revaluations. Why not? Why not us? Why not you? What are competitors providing? AVMs provide testable reliability (risk) measures BPOs are faster and cheaper Economists provide analytic […]
Make an adjustment. Support it. What does USPAP say? Nothing. It’s not in the integrity standards. It’s not in the performance standards. What does the AI Dictionary of Real Estate Appraisal say? It doesn’t define it. However, it does explain the result of adjustments: “Mathematical changes made to market data to facilitate comparison of understanding.” […]
Have you ever left a class feeling excited, but when you did your next assignment, you went back to the old way? Actionable education means you learn immediately useful actions and attitudes, AND the motivation to take advantage in your daily practice. How is this achieved? Well, one way is to simply understand how your […]
Simple. It’s valuation based on evidence, not belief or “good judgment.” What is “evidence”? Evidence can be anecdotal, empirical, or logical. Logical evidence is the easiest, and strongest. If A, then B must follow. We only need to agree that A is a fact, or is true, or as an assumption. Generally, there is no […]
