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 […]
Well, of course – appraisal is not based on our subjective beliefs. It is based on support! Support your opinions and conclusions! Support your results “by relevant evidence and logic.” Form your opinion, then support it . . . These words have always bothered me. A scientist does not form an opinion, then figure out […]
We read articles and advertisements on how to prove an adjustment. Is this possible? How wonderful it would be. To prove an adjustment, just push a button and bam! Out comes the correct answer. How could we have we missed this? Of course, if such a simplistic and exact answer was possible – anyone could […]
One appraiser brain says you must be “independent, impartial, and objective.” (USPAP) It wants to be good. It wants integrity and to sleep peacefully at night. But there’s another brain. It’s primal and wants to survive. It has other responsibilities: meet the bills, feed the family, pay the mortgage, and pay government taxes/fees. And recorded […]
This is Part Four in a series on Hybrid Appraisal. Be sure to read Part One, Part Two and Part Three. The term “hybrid appraisal” (as it’s currently used), means that the appraiser sits at a desk, while someone else (not an appraiser) looks at the property. It appears that the non-appraiser may or may […]
Why does a hybrid appraisal work better? What are the benefits? Who benefits? Who pays? A hybrid appraisal, as it has been proposed, separates the field work from the desk work. The assumption is that an appraiser is good at filling out the forms, while another “cheaper faster” person can do the property inspection. Also, […]
We’re told to “support” our adjustments. We hear words like “prove” your adjustments. . . as if there were some magic formula which can give an exact, correct, and absolutely true number. It used to be so easy. . . Our trainer gave us a sheet with the “right” adjustments. Simple. USPAP Standards Rule 1-1 […]
We’ve heard that Fannie and Freddie are developing new forms. So, what might the next 1004 form look like? Will it require three comps, two listings, and a pending? Will it require a full data download, or a description of search parameters? Will it still even be designed to fit on 8 ½ inch paper? […]
