The Analogue Blog
- 1004MC
- Accuracy
- Adjustments
- Algorithm Part 1
- Algorithm Part 2
- Algorithm Part 3
- Algorithm Series
- Analytics
- and Data Science Classes
- Appraisal
- Appraisal Institute
- Appraisal Modernization Series
- Appraisal Obsolete Series
- Appraiser
- Approach
- Asset Analyst
- Auditable Appraisal
- AVM
- Bias
- Bias Series
- Big Data
- Catastrophic Event Impact
- Catastrophic Events
- Change
- CMS
- Community of Asset Analysts
- Comparables
- Competitive Market Segment
- Consumer
- Credible
- Critical Thinking
- Data
- Data and Science Series
- Data Science
- Data Set
- Dieing Profession
- Dying Profession
- EBV©
- Education
- Error
- Ethics
- Excess of Appraisers
- Expert Judgment vs Data Expert
- Fannie & Freddie
- Fannie Mae
- FIRREA
- Five Frictions
- George Dell
- Graphs
- Gratitude
- Great Recession Series
- Groupthink
- Guest Post
- Hybrid Appraisal Series
- Judgment vs Data part 3
- Judgment vs Data Series
- Loan Conditions Series
- Market
- Market Price Or Market Value Series
- Market Value
- Measure of Risk
- Model
- Move to EBV?
- MPI (Market Price Indexing)
- Myths Fallacies & Foibles Series
- Neighborhood
- Neighborhoods
- New Bias Series
- Predictive Models
- Price Indexing
- Public Trust
- Regression
- Regulation
- Reliability
- Reliable
- Risk
- Sensible
- SGDS2
- Simple
- Simple Regression
- Standards
- Statistics
- The Appraisal Journal
- Tool
- Uncategorized
- Universal Valuation Standards
- URAR
- Useful
- USPAP
Creepy Transaction Creep?
Transaction costs are added to every property transaction. Is this add-on a fair addition to the fundamental, intrinsic value a buyer gets? Is it part of the value of the home? Or is it something else? Is this a public policy issue? Is it an appraisal issue? And, is it yet one more question about […]
What is Appraisal Accuracy?
Accuracy measures how close is a value to the true/actual value. Who cares? Accuracy is a professed desire of most users of valuation services. However, today’s conflicted regulations, legacy practices, and obsolete standards — do not have accuracy as a goal! The overarching goal of appraisal today is not “be accurate” — it is “be […]
Are Adjustments Necessary? Part 3
“I never make adjustments,” said the MAI who first trained me. He was a top litigation appraiser. He explained that if he made an adjustment he had no way to explain how he got the number when cross-examined by the opposing attorney. Instead, he used what is called ‘qualitative analysis.’ The Appraisal of Real Estate […]
What is Appraisal Modernization? Pt 13
The word “modernization” has a meaning different from what I thought. It seems to depend on who is using the word. To me, it just meant “get with it!” To our GSEs (Fannie Mae and Freddie Mac), it means something special. The dictionary definitions and explanations focus on the social and even political aspects of […]
What is The Market?
“Market” – A word poorly understood, and often misused. A gathering or place for buying and selling things. It can be physical, or virtual, and involves at least one third party for competition. Perfect competition is when you have many buyers and sellers. A real property market is seldom or never perfect. A “market” for […]
Why MPI(c)?
MPI© (Market Price Indexing) is a holistic approach to market analysis and “time adjustments.” Here we look at the process, the theory, the judgment, and the benefits of this model. MPI – The process involves simple mechanics: Download the relevant competitive market data. Create a scatterplot with sale prices over time. Clean the data of […]
Judgment or Analysis?
Appraiser judgment is required. Analysis is reduction and logic. Analysis comprises reasoning and reducing the problem into well-mannered parts. Logic can be mathematical/absolute, or it may involve uncertainty/probabilistic reality. Reduction is the act of separating a larger problem into manageable parts. Judgment, in (traditional-legacy) appraisal, is emphasized in picking comps (data selection). Appraisers are admonished […]
No Time Adjustments!?
Time adjustments are not required. Unless they are needed . . . Appraisal time adjustments are also labeled as “market conditions” adjustments. Or, more recently in Evidence Based Valuation, “Market Price Indexing (MPI)©”. The FHFA blog post of 1/16/2024 defines “underappraisals” as those loan appraisals which come in below the contract price. The rising market […]
Are Standards Credible?
“USPAP” is for credible appraisers. The underlying principle of the actual ‘standards’ and the hundreds of pages of “explanatory” material is that the appraiser’s work must be “worthy of belief.” Accuracy and precision (trueness and sureness) are never stated as a goal. Believability, in turn, is judged by the user “expectations” and if “peers” would […]
Critical Thinking?
Is thinking necessary? Are there different types of thinking? Can I avoid thinking about this? As the appraisal profession transitions to data analysis methods – we discover that judgment becomes more important – not less important. In fact, it does require we think about thinking! Let’s go! We can contrast a critical thought process with […]
What IS an Appraisal?
An appraisal, everyone knows what is. Or do they? To explore this question, we must consider the theoretical – what USPAP expects. And we must consider what actually happens – in real, practical, practical, practice. In addition, we must consider other “valuations” types. We also might glance at what might be an ideal – given […]
Resolved Resolutions?
Resolved: I am going to do better this year. Done! Each new year, most of us give some thought to how the next year might be better or different from last year. We set some intentions. We call these “Resolutions.” Or not. What’s wrong with this pledge to self? Lets look. You have to ask […]
More Appraiser Censorship??
More appraisal censorship is here! Have you noticed this new regulation that censors California appraisers and flat out appears to prohibit accepted sound appraisal methodology and practice? Editor’s Note: A Guest Post from Bruce Hahn, CCIM, MAI, SRA Consider California Business & Professions Code Section 11424(a) which says: Licensees shall not base, either partially or […]
Education: Delivery or Content?
The education question — what is more important? The content of appraiser training, or how it is delivered? Appraiser education “marketability” is similar to appraisal marketing itself. Buyers of appraisals and buyers of appraisal education judge by three things: Cheap; Fast; Good. “Pick any two” says David Towne in his graphic. Anyone can provide classes. […]
EBV Best Practices?
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 […]