Reflections:  The CAA Conference

The Community of Asset Analysts had its Fourth Annual Conference in Las Vegas February 18-19.  It was fun.  It was smart.  It was spirit.

All topics, presenters, and attendees promote a great future for the valuation profession.  Topics included some forward-looking movement:

• The continued use of modern-day software, visualization, and emphasis on sharpened expert judgment. Artificial Intelligence (AI) requires an underlying science, not personal opinion and art!
• The superiority and simplicity of data science methods over the obsolete mentality of “pick comps, make adjustments.” Universally, speakers noted less need for the task of “supporting” or even just making adjustments.
• The current importance of market conditions is shown in Evidence-Based Methods. The four elements of the ideal time-adjustment model are noted.
• One presenter noted the wasted effort in learning random-sample statistics.
• Notable was the mention of the several systemic upward pressures on home prices, (including “data cancer”) creating a greater housing problem and wealth disparities.
• The emphasis in EBV methods on good communication of reports eliminating questions and reconsideration issues.
• An example of an income (apartment) case showed the importance of data grooming (an evolved form of “confirmation.”)
• Usefulness of ranking (sequencing) analysis in lieu of full quantitative or qualitative methods. Particularly in rural and other data-sparse areas.
• The need to professionally “train and educate” clients in modern methods.

The CE class opened some eyes!  R for Excel Experts!  Speed and convenience!

In the short business meeting, several topics came up:

• The need for more publicity about the CAA and our mission.
• The opportunity driven by our strength – market conditions analyses.
• Our intent to develop risk/reliability measures, forecasting.
• Another opportunity to provide transparent, auditable reports.
• Our continued effort to provide standards and best practices for market-based valuation and risk scoring. (Trends are market-segment based, not comp based!)
• “Appraisal is market analysis” — not “comparing comps.”

We provide regular newcomer assistance and software to members.  The only requirement at this time is completion of the foundational class — Stats, Graphs, and Data Science¹.

Valuation AI is more science, and better art!