The developers of EBV (Evidence Based Valuation©) have concluded that best practices are dependent on the needs of the client for reliability and useability of the results. The need of the client is the predicted value (estimate). The goal of a valuation is trueness (accuracy) of the prediction or opinion. The test of any valuation is […]
The valuation “process” (algorithm and model) is universal. What does this mean? It means that it doesn’t matter who does it, who makes decisions, or who ‘inspects’ the property. The science is the same: Systematic study through observation and experiment. Editor’s Note: This is Standards, part 3.19 of George Dell’s series on How Do I […]
Editor’s Note: This original Gratitude post written by George Dell appeared in The Analogue Blog on November 21, 2018. A lot has transpired in five years. (The understatement of the Century!) But our gratitude is stronger than ever after all these years. Editor’s Note: Check out the later post from November 26th, 2019 here: Does […]
EBV (Evidence Based Valuation©) is the future of professional appraisal. EBV is the best response (and advantage) to the dramatic changes in residential appraisal practice. Change in the nature of commercial/industrial valuation will follow, as it usually does. Editor’s Note: This is Standards, part 3.18 of George Dell’s series on How Do I Move to EBV? […]
Biased Appraisals: A Cause or Symptom? In biology, there is a distinction between “proximate cause” and “ultimate cause.” In appraisology, the proximate (immediate) cause of valuation bias is the appraiser’s opinion. – For example, the appraiser reporting a “too high” number shows the ‘impact’ proximate bias. The ultimate (underlying) cause of this bias might be […]
We’re gonna crash! Now What? An appraiser’s job is to reflect the market. A couple of questions: What is “the” market? And how do I reflect? I like to divide consumer behavior into two thought patterns: Micro and Macro thinking. Micro thinking is under the assumption that the buyer is buying for personal use – […]
Appraisal modernization has been touted in different ways. It depends on the touter. “Modernization” is a good word for marketing. But what is “modernization” selling? Is it selling modern technology? The partitioning of appraisal workflow (initiator, AMC manager-selector, data collector-researcher, inspector, analyst, reporter, reviewer, decisioner)? Standardized uniform data sets (UAD) are ever more detailed, subdivided, […]
A dictionary definition of “adjust” is: “alter or move (something) slightly in order to achieve the desired fit, appearance, or result.” When I “carefully” pick some comps, I use my judgment to need as little fudging as possible. But it never seems to work out just right. There are three practices to adjust the fudging: […]
EBV (Evidence Based Valuation) principles continue to update from legacy “appraisal” practices. Here we hope to have a quick look at the upsides and downsides of EBV, compared to traditional, judgment-based “methods and techniques.” Editor’s Note: This is Standards, part 3.16 of George Dell’s series on How Do I Move to EBV? Links to the […]
We’ve seen the standard which requires an appraiser to use ‘correct’ methods (whatever those may be). And which also requires the appraiser to use ‘sufficient’ care (whatever that is). All part of the legacy USPAP Uniform Standards of Professional Appraisal Practice. Be correct and be careful! Editor’s Note: This is Standards, part 3.15 of George […]
Quasi-government “Congressionally-authorized” appraisal standards require “correct” research and analyses. What does that mean? What is correct? And who decides? It’s in Standard 1. Be correct. Editor’s Note: This is Standards, part 3.14 of George Dell’s series on How Do I Move to EBV? Links to the earlier posts are here. Does this say – it’s […]
Assume what condition your assumption is in! Editor’s Note: This is Standards, part 3.13 of George Dell’s series on How Do I Move to EBV? Links to the earlier posts are here. Assumptions are a critical part of all analyses or reasoning logic. Assumptions about assumptions are interesting. Two starting points are assumed: 1) the […]
Scope of Work is what you plan to do. It requires you to identify the problem and identify the work necessary. The goal of USPAP (Uniform Standards of Professional Appraisal Practice) is credibility. The appraiser should be “worthy of belief.” A measure of reliability or usefulness of the appraisal is not required. Editor’s Note: This […]
You MUST make adjustments. Everybody knows that! Or not. In USPAP and The Appraisal of Real Estate (TARE) we have two predominant topical sources. The USPAP standards do not require adjustments. The word “comparable” is not defined, nor is the word “adjustment” found in USPAP. Nothing about adjustments nor picking comps. However, we note that […]
Scope of Work is required in legacy appraisal practice. Data Science (and Evidence Based Valuation) are more based on principles of good science. Editor’s Note: This is Standards, part 3.11 of George Dell’s series on How Do I Move to EBV? Links to the earlier posts are here. To sum up, the goal of traditional […]
