Our blog this week, ‘Can Expert Analysis Save Appraisers?’ is a guest post from a long time friend and colleague, Timothy Andersen, MAI, MSc, CDEI, MNAA, The Appraiser’s Advocate.

Analysis of what? Save appraisers from what?

Clients want more than our opinions. They expect us to gather data, analyze them, and then interpret them.

In other words, clients want to know what the market is doing and where it is going. They already know where it went and how it got there. That’s all part of the historical record.

George Dell is a tireless teacher. He knows that we appraisers do not have the quantity of data to engage in a traditional inferential statistical analysis. And of course, appraisers don’t take random samples, so inferential statistical models do not apply.

We analyze markets using of all the data necessary. When you have all or substantially all of the data, the appraiser can use simple descriptive statistics.  USPAP tells us to use all information necessary, with such comparable sales data as are available.

Which is why market analysis will save appraisers. Using RStudio as the analytical tool, appraisers can organize and then analyze the market using available sales, listing, rental, and cost data. This market analysis will save appraisal since such an analytical trail makes the appraisal reproducible and transparent. Features GSEs are looking for.

Credibility, as is beauty, is in the eye of the beholder. No more saying, “Hey! I’m the appraiser! I know a good comp when I see one!”  Reliability is an analytical result.

Now we can say, “I followed the data, and these were the best comps. That’s why I used them. This is not an opinion. It is the expert analysis of the current market data.”

Analysis will save appraisers. It will save them from hoping they have crunched all the data. It will save them from mis-recognizing and then mis-applying market trends. It will save them from the clutches of rapacious state appraisal boards. And possible ROVs.

Appraisers, will you take advantage of it?