Our education tells us a comp is similar and competitive. So how do we measure “comparability”? If our job entails studying market data to get an answer … might it be important to know exactly how to describe a comp? In researching the literature, including journal articles, I find little help. Only two or three […]
What does it mean “Can the profession be saved?” Does anyone else care except us? The second question first. Who might care? Clients who have developed a trust for you and who are comfortable with the traditional ways of doing things. There is a group of us and of them who like doing things as […]
Is Appraisal belief based? USPAP says our work should be credible: “worthy of belief.” That’s the test. What/who tests worthiness? In the Scope of Work Rule, it is “client expectations” and “peer’s actions.” In the section on “acceptability,” it goes even further, stating that an appraiser must do what “would appear relevant to the client.” […]
Major challenges exist within our appraiser education given the dramatic changes in technology. These challenges include appraisal standards, our basic and advanced education, and some claims by software providers. A quick overview: Subjective acceptability in standards; Inferential assumption in curriculum; Regression coefficients all over the place. Subjective acceptability. Many consider appraisal to still be […]
Can you just give me some magical software which will calculate my adjustments? I get asked questions like this often. Can you just show me how to do a graph a client wants? Can you just give me your class stuff so I don’t have to come all that way? So often, the question degrades […]
No it’s not. Just do what you’re told. Do what you were taught. Follow the Rules. No thinking required. What are the “rules” of appraisal? Easy: Get your intended user’s expectations (scope of Work). Pick your comps. Apply one or more “approaches”. Provide your opinion (then explain, justify and support that opinion). How will you […]
Who cares if it’s reliable? It only needs to be “credible” – believable. Credible: “Worthy of Belief” Reliable: “Repeatability of findings” Credibility comprises both trustworthiness and expertise. It has both objective and subjective elements. One can also increase credibility by being a good salesperson by convincing the reader of your viewpoint. You form an opinion, then […]
Why do we have scope creep? Possible answers include: The reviewer or clerk has to justify their existence; There is genuine concern about something; The work should’ve been there in the first place; It’s important to remember that our entire system of appraisal production and review is belief-based. It must be “worthy of belief.” We […]
Appraisers have always worked with data. In the early days, we’d go to the county courthouse to examine the possible types available in the county recorder’s sales that might convert into useful “comps.” An experienced appraiser had a rough idea of what was being looked for, taking the first step in converting unsystematic data into […]
Yes. Appraisal as we know it is dying. Can it be saved? No. So what should I do? What should “we” do? To answer these questions, we need to look at causes and conditions. Some of these are obvious. Judgment is good; Analysis is better. Human generalization is excellent; Computation is fast. Good comps are […]
Tools for work, tools for life. This time of the year for many is a time of reflection and hope. My reflection today is how some principles of our profession may be principles of a successful life; what those principles may be, and how they’ve contributed to my joy and sense of satisfaction and service. Integrity […]
I saw an article from the Washington Post, December 15, 2017, saying the administrative/enforcement branch of the U.S. government is banning the use of certain words or phrases. Two of the phrases include “science-based” and “evidence-based”. As many of you know, I am an active advocate of Evidence Based Valuation.© If valuation based on evidence […]
Which comes first? The model tells us how. The tool tells us what. The more important may be the why. Why use a model? Why use a tool? Last Friday, December 8, we gave the first ever class on R for Appraisers. R is the tool. R is too cool. It’s clearly the toolbox of […]
What went wrong? How did a vibrant profession of experts in property value begin to disappear? Who’s at fault? Is it the appraisers? The Standards? The “appraisal process”? The regulators? Or could it be even the users and clients? Inertia does not come easy. Change is even more difficult. Inertia requires defending the old way […]
Doggerel is defined as “a comic verse of irregular measure.” It seems we have three possible types of collateral assurance: Appraiser judgment AVM proprietary algorithm Evidence based data science The first relies on subjective appraiser judgment of “comps.” The second relies on secret proprietary algorithms. The third combines the most robust and most useful information […]
