It depends on the client. Clients complain depending on the motive of the complainer! Let’s first look at just residential loan clients. (The other types of clients are for another time, another post.) So, what are the “types” of complainers in the residential loan world? Some categories: Form checkers “Administrative” reviewers Technical reviewers Middle management […]
Part IV of VI: Data is data. It becomes useful in only two ways. Simple, huh? Appraisers and asset analysts add value to data by a systematic process. The analysis turns data into useful information. The information can then become knowledge, useful for making a decision. Analyst judgment is still required. The judgment is improved […]
Stats, Graphs, Data, and now – Science. Why is science relevant? Isn’t good judgement important? Science is: “the systematic study of the structure and behavior of the physical and natural world through observation and experiment.” So how does this relate to valuation? First, we can get rid of a big chunk. Appraisers cannot do experiments. […]
Is the profession dying? Do we save it? Or change it? How does EBV © make things better? How can it be better for appraisers? For lenders? For investors? For litigation? We have several questions. These are each worthy of a look. To this end, this will be the first of several parts, to see how […]
One appraiser brain says you must be “independent, impartial, and objective.” (USPAP) It wants to be good. It wants integrity and to sleep peacefully at night. But there’s another brain. It’s primal and wants to survive. It has other responsibilities: meet the bills, feed the family, pay the mortgage, and pay government taxes/fees. And recorded […]
Well, of course – appraisal is not based on our subjective beliefs. It is based on support! Support your opinions and conclusions! Support your results “by relevant evidence and logic.” Form your opinion, then support it . . . These words have always bothered me. A scientist does not form an opinion, then figure out […]
Simple. It’s valuation based on evidence, not belief or “good judgment.” What is “evidence”? Evidence can be anecdotal, empirical, or logical. Logical evidence is the easiest, and strongest. If A, then B must follow. We only need to agree that A is a fact, or is true, or as an assumption. Generally, there is no […]
Have you ever left a class feeling excited, but when you did your next assignment, you went back to the old way? Actionable education means you learn immediately useful actions and attitudes, AND the motivation to take advantage in your daily practice. How is this achieved? Well, one way is to simply understand how your […]
Make an adjustment. Support it. What does USPAP say? Nothing. It’s not in the integrity standards. It’s not in the performance standards. What does the AI Dictionary of Real Estate Appraisal say? It doesn’t define it. However, it does explain the result of adjustments: “Mathematical changes made to market data to facilitate comparison of understanding.” […]
Appraisers provide clients a point value. From two weeks ago. An opinion. What clients need: A forecast, a risk analysis, an underlying “fundamental” value; annual and spot update revaluations. Why not? Why not us? Why not you? What are competitors providing? AVMs provide testable reliability (risk) measures BPOs are faster and cheaper Economists provide analytic […]
Is the science different from the old routine – “support your opinion”? It kinda sounds like the same thing. Of course. No real difference. But is it possible there a difference in the thinking process? Would a scientist think about the problem differently? First, let’s be clear on one thing. We get paid for four […]
Editor’s Note: Check out the post from November 26th, 2019 here: Does Gratitude Make Me Money? Why should I have gratitude? Ugh! My clients want me to hit the number . . . And be ethical about it! Pressure, pressure, pressure. For me, the problem was the way I looked at things. I saw gratitude […]
The appraiser is supposed to be accurate. What is “accurate”? Dictionary meanings say accuracy is “the condition or quality of being true, correct, or exact.” Tell the truth. Can it be? Hmmm. A search for truth. OK. So how do we come to know the truth? Are we supposed to be paid truth-seekers? Cool. I […]
I searched the words: support and prove in both USPAP and in The Appraisal of Real Estate”. Interestingly, the word prove is not found in either document in this context. The fuzzier word support is found throughout both. The word ‘support’ seems to support supporting your opinion. How is the word “support” used in the context […]
What kind of appraiser are you? Different appraisers have different attitudes! Some have a lot of experience, others a lot of education. Others emphasize the ‘art’, while others consider themselves ‘quants’. Let’s put aside the ‘art’ versus ‘science’ discussion, where the artists say: “No computer will ever replace the appraiser”, or “No amount of education […]