Does it matter, or can I just do better at the old way of doing things? Big Data is a broad term, used and misused to describe a lot of things. One thing it clearly includes is the fact that we are being overwhelmed with a lot of data. A lot of that data is […]
What is a predominant value? Is it the median, the mode, or the mean? Or could the predominant value possibly be the geometric mean or weighted mean? As it turns out, there are a couple dozen different ways to calculate a measure of center in data analytics. None of them are called ‘predominant’. Certainly our […]
Quiz: How many comps are “just right?” First we must ask: What is a comparable? We can take two attitudes: 1) “I know a good comp when I see it!” or; 2) What does our accepted literature say? The Appraisal of Real Estate says . . . “The data used for comparison … should come […]
Our education tells us a comp is similar and competitive. So how do we measure “comparability”? If our job entails studying market data to get an answer … might it be important to know exactly how to describe a comp? In researching the literature, including journal articles, I find little help. Only two or three […]
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 […]
Appraisers have been taught to first analyze the subject property. Is this correct? What would an economist do? Would she analyze the property, or figure out the market? Well yes, an economist would try to figure out a market. First, it’s important to consider what type of market we are talking about. What are the […]
“Appraisal is market analysis!” is the title of a 1975 journal article by Richard Ratcliff, MAI. Freddie Mac Chief Appraiser Scott Reuter recently noted pervasive market analysis deficiencies in appraisal opinions. Specifically, discrepancies from actual contract prices. For appraisers, this disparity is easily accounted for by two reasons: Failure to implement time adjustments to the […]
Traditional appraisal says we should describe and analyze the subject neighborhood. In residential form reports, there is a section devoted to the neighborhood. In general narrative reports, there is a section devoted to the neighborhood. In fact, often there is great discourse about the town, the city, and greater things. We have often heard criticism […]