An appraisal is an opinion of value. It is not the report! Nearly all recent hullabaloo about modernizing has been led by the big customers: FannieMae and FreddieMac. The “UAD” and “new URAR” is about the report. Not your analysis! Yes, the report does affect the analysis. But it is not “the act or process […]
On March 13, the President’s office ordered actions “Promoting Access to Mortgage Credit.” An Executive Order. Read the full document here. This President’s order sets goals of “reducing lending costs” and to “remove regulatory distortions” to “the structure of the mortgage market…” Section 6, Appraisal Modernization, states: Modernize appraisal regulations and guidance; Expand the use […]
Once a valuation problem is “properly” identified — the next step is to determine the scope of work necessary… (Per USPAP – Uniform Standards of Professional Appraisal Practice). Intelligence Appraisal, using AI, provides a more realistic objective/defined test – for both the problem identification and the scope of work. Intelligence appraisal incorporates appraisal science. So, […]
Intelligence appraisal does not appear in a vacuum. The process follows the same sequence as does the traditional paradigm. The difference is in the tools, the technology, AI, and a sharpening of judgment in the underlying econometric theory. Intelligence Appraisal incorporates Evidence Based Valuation – EBV. Appraiser experience in legacy routine and thinking are the […]
Intelligence Appraisal uses human intelligence combined with artificial intelligence. The human intelligence role combines art, knowledge, and skills. Art involves how to interface with the AI agent, knowing the underlying theory of the analysis. This can be creative, and recognizes emotional aspects of human behavior. Knowledge means both the subject matter, and the right use […]
Artificial intelligence is a blinding light through a stormy hole in the sky. Punctuated at times by lightning bolts. People yelling “look out.” All this, in a world of UAD and “new” requirements like for time adjustment! Whew! Gonna quit. Gonna retire. Gonna see. Gonna wait. Let’s see how it goes. Fight, flight, or freeze? […]
Does artificial intelligence require appraiser intelligence? This idea opens up a whole series of questions that need to be answered. A lot. And we need to be smart about how we look at this. Are there other forms of intelligence? What is intelligence? Are you intelligent? Does valuation require intelligence? And if so, are there […]
Valentines Day means different things to different people. Most people connect it with the word “love.” How does this “love” thing work? First, as always, we need to define what love is. What is it? Love means different things. It tends to reflect one of two concepts: A platonic, non-romantic nor sexual, but selfless attachment […]
Probably the most probable definition (of value) in use in the U.S., is used for “federally related transactions.” The underlying assumptions assume “normal” or “typical” conditions. The “most probable price.” “Most probable” presumes you can attach certain levels of possibility to different values – then just pick the one value which is the “highest” probability. […]
The Stats, Graphs, and Data Science classes are appraisal science. Why should an appraiser care about appraisal science? Is there an art part? Or is it a hybrid? The appraiser’s future is appraisal science, and sharpened judgment with AI assistance. Appraisal science: Appraisal is an opinion of value, or commonly, “the report.” Science is a […]
Technology in appraisal is the new exposure draft — Advisory Opinion (AO41) written by the Appraisal Foundation (Appraisal Standards Board). It does not define what technology is. More importantly, it seems to treat process technologies and product technologies without distinction. Appraisers mostly buy products (like measuring devices), and mostly sell data process technologies (like analytics, […]
So how credible is your appraisal? [or Death of a Profession] We need to look at this “how credible?” thing. Maybe a “Believability Score”! USPAP says credible is “worthy of belief.” Ah ha! Explained. We just need to measure “how worthy” is your opinion. A worthiness measure! Just what our appraisal user/clients need. So that […]
Why Resolve anything? I resolve because I want to get something, to change something. Even myself self. Darn. But still – I do want something to be different. So what is my scope of work? That helps! Identify the doable goal, and an approach. Select a path that works, and can succeed. Identify the proven, […]
What is spirit? What is your spirit? Do you care? Spirit is both a psych term and a mystical term. In psychology, “spirit” is about “the non-physical core of a person—the vital force, moral character, a transcendent essence beyond the body, connected to meaning, purpose, and wholeness. Spiritual principles are useful, practical, and profitable. A strategy. What are […]
Why is Data Science important for your future? The Big Four Part 3 — DS? (Read the earlier blogs here.) Easy. AI is on the way. It’s gonna be OK. UAD 3.6 is here and forces more detail in development and analysis. Appraiser judgment requires a deeper logic with more detail. Algorithms can be automated, […]
