We are taught that our work must have believability: as per USPAP, credible means “worthy of belief”. Let’s look here at the difference between credibility and reliability. It must be important. It’s used in the actual standards (integrity and performance) part at least 59 times. If you include the whole USPAP 2018-2019 book, it is […]
New Year’s resolutions are certainly good, even great wonder and intent. I have made a few. I don’t remember any ever working out. But some things did work out. I ask: What was the difference? The difference is between January 3rd and December 28th. Generally, I had resolved to make some resolutions right away, on […]
As an appraiser, it is time to look forward to this next year. For me, it seems looking forward always means looking backward. Oh well. Perhaps life is just like the appraisal process. We are asked to predict forward—based on the past market sales. Sometimes I wonder if a present even exists. Just as soon […]
If your work is reliable, it’s credible. If it’s credible it may not be reliable. USPAP (Uniform Standards of Professional Appraisal Practice) defines credible as “worthy of belief.” So how does one strive to be worthy? Well the automatic answers are . . . automatic: 1) have education/training; 2) have experience; 3) have integrity. Let’s […]
We believe we know what we know in four basic ways. Do you know which one is you? Charles S. Pierce identified four basic ways we come to believe that we know what we know. It is interesting, for my own benefit, to understand how my personal beliefs came to be, and how the general […]
You did a bad—a USPAP violation! They said so! Are they right? A violation. A strong word. Clear and succinct. Easily understandable by anyone. Of course. Black letters on white. Where in USPAP does it identify (for real property) what is a violation or not? We can look at three parts of USPAP; First there […]
We know there is science in art. Musical scales. Perspective and the golden ratio. The ordered sequence of a good novel. It’s difficult to be a good artist without knowing, or at least intuitively applying the truths found in the logic. Both science and art reflect our search for the truth. Our primal human nature […]
And change it does. The biggest changes slip in almost without notice. USPAP recognizes change. In fact, Standard 1-1 says: …the principle of change continues to affect the manner in which appraisers perform appraisal services. It specifically recognizes change in cost, construction, marketing, law, lending all lead, or should lead to corresponding changes in appraisal […]
Hybrid Appraisal, Part VI Is it possible that Lo-Brid or even No-Brid appraisals could be even faster and more cheaper? Hybrid appraisals have been hyped as being a “modernization” of the appraisal process. While the appraiser still fills out the “Fannie Mae” form, the actual property visit is done by another person (with as yet […]
Stress testing of regulated banks forecasts how declining economic conditions may impact bank safety. Loans, secured by real property can be significant in the overall portfolio of a bank. This property collateral portfolio itself will have different characteristics, depending on the locations, property types, and business types involved in the underlying collateral. Different properties will […]
Is the sale price the best indicator of value for appraisers? A recent study[1] includes a graph which shows that some 90% of appraisals hit the sale price exactly, or were higher, while only some 10% were below the sale price (when the sale price is known). Is this a bias on the part of […]
Is the science of Logic in art? Is there art in the science of data? Ask any musician or artist. We have perspective, the golden ratio, octaves, and even measurable human body and brain responses to music, visuals, and other sensual inputs. I have never read or heard a data scientist say there is no […]
Statistics for appraisers started to become a hot topic some 15+ years ago. I was more involved with the Appraisal Institute then, and often argued that with the changes in data sources—appraisers would have to learn to apply statistics. Around 2003, the AQB (Appraiser Qualifications Board) revised qualifying education to include the requirement for Finance, […]
An appraiser must be worthy. You must be believable. Your work must be credible. That’s what it says in USPAP (Uniform Standards of Professional Appraisal Practice). Note that the source is the Appraisal Foundation—declared therein to be “the nation’s foremost authority on the valuation profession.” It uses the word “credible” 82 times in the Standards […]
The future is here now. How can an average appraiser prepare? Some practical views. There are a lot of questions here. How are things changing? Will my knowledge be of any value? Is there any hope at all? Will clients require something different? If I am to survive, what do I need to do different […]