Modernize comps? Silly do. Everybody knows what’s a good comp! Or do they? This simple claim forms the major dividing line between the old way, and the new way – the legacy “trust me” appraisal paradigm – and all other forms of valuation and risk assessment. This Modernizing Appraisal series is about the analysis process, not FannieMae and FreddieMac reporting requirements. […]
There are several appraisal standards. One, which is financed through appraiser licensing fees is called USPAP – Uniform Standards of Professional Appraisal Practice. In theory, USPAP is for “federally related transactions.” This Modernizing Appraisal series is about the analysis process, not FannieMae and FreddieMac reporting requirements. The process is identical: 1) The problem; 2) The data; 3) Predict or adjust; 4) Communicate. We continue here on #1 – […]
Intelligence is “the ability to acquire and apply knowledge and skills.” For valuation and risk decisions, we have three relevancies: Human intelligence applies research, market knowledge, and proper methodology skills. Artificial intelligence (Ai) follows instructions and context provided by the analyst. Human art – is an expression of ideas, intuition, and skill. This Modernizing Appraisal series is […]
Is traditional appraisal theory different from modern analytics theory? This Modernizing Appraisal series is about the analysis process, not FannieMae and FreddieMac reporting requirements. The process is identical: 1) The problem; 2) The data; 3) Predict or adjust; 4) Communicate. We continue here on #1 – defining the problem to be solved. Read the earlier parts […]
Artificial Intelligence (Ai) applications need data science! This Modernizing Appraisal series is about the analysis process, not the reporting revisions –(New URAR, UAD3.6). We step through: scope, data, and ”adjustments.” It sets today’s path to competence, using data science with artificial intelligence. […]
With modernized methods, appraisers can gain respect, income, and provide a genuine public service. This Modernizing Appraisal series is about the analysis process, not the reporting revisions –(New URAR, UAD3.6). We step through: scope, data, and ”adjustments.” It sets today’s path to competence, using data science with artificial intelligence. […]
Why is modernizing necessary? This Modernizing Appraisal series is about the analysis process, not the reporting revisions –(New URAR, UAD3.6). We step through: scope, data, and ”adjustments.” It sets today’s path to competence, using data science with artificial intelligence. […]
This is Part Two of a multi-part series on Modernizing Appraisal. Read more here. Issue #1: “Modernizing Appraisal” can mean different things to different patrons and different “authorities.” An appraisal is defined as an opinion of value, provided by a licensed appraiser. An appraisal report is the delivery mechanism (paper or electronic). Unfortunately, the entire […]
Appraisal is the process, not the report. While the quasi-governmental agencies (the Government Sponsored Entities FannieMae and FreddieMac) are the dominating (monopolistic?) entities, they cannot and should not dictate how analysis and value opinion is done. We start this multi-part series by looking at how we got here – our legacy. This includes our history, […]
What is “Modernizing”? What is “Appraisal”? This is the first in a blog-series to look at “modernization” from the viewpoint of the appraiser analyst, and not the view of the client-user report. In the valuation world, the word “modernizing” has been commandeered by the GSE’s (FannieMae and FreddieMac) who give it a particular meaning. Primarily, […]
Appraisal regulations are like a multi-dimensional board game. Regulations regulate process. Process results affect everyone, including: Quasi-governmental organizations (Fannie/Freddie/App. Foundation) Non-appraiser valuators Homeowners Taxpayers Veterans Lenders Valuation affects everyone. It touches on racial/minority bias, wealth transfer, homelessness, family values, and even mental health. Many aspects of appraisal process still follow the data-context of old history. […]
Ai, Artificial Intelligence, needs guidance, the right questions, the right prompts. How does judgment-based appraisal work with Ai? Or does Ai work better with algorithms? Appraisal is defined as an opinion, or developing an opinion. Defined as worthy of belief (“credible”). Data Science (DS) is defined as systematic study by an expert in scientific methods […]
Does this (in-process) Congressional Act prevent or cement bias-vulnerable appraisal practices? [The Appraisal Industry Improvement Act (S.1635) was introduced on May 7, 2025, by Sen. Kevin Cramer (ND) and co-sponsored by Sen. Ruben Gallego (AZ).] Traditional, legacy appraisal practices were developed in ancient ‘paper data’ times. Simply put, the process was: 1) pick some “comps”; […]
We hear noise in appraisal work on trend analysis, time adjustment, and “market conditions.” These overlapping terms are related but often mixed in their use. Lack of clarity/definition is perplexing! The confusion may be explained by: Lender/investor goals may vary. Modeling differences in “signal vs. noise.” The relevance of seasonality depends on intended use. First, […]
Flag waving and appraisal. Huh? The Fourth of July is a day celebrating the anniversary of national independence. Appraisers are supposed to be impartial, objective, and independent. The new nation wanted independence from a King. Appraisers are to be independent of all the other participants in the real estate deal: buyer, seller, listing agent, selling […]
