Biased Appraisals: A Cause or Symptom? In biology, there is a distinction between “proximate cause” and “ultimate cause.” In appraisology, the proximate (immediate) cause of valuation bias is the appraiser’s opinion. – For example, the appraiser reporting a “too high” number shows the ‘impact’ proximate bias. The ultimate (underlying) cause of this bias might be […]
Current efforts in the regulation of appraisal quality and fairness are fettered by obsolete appraisal methods. Traditional appraisal methods were designed to tackle sparse, subjective, non-electronic data. These vintage practices enable bias, hinder diversity initiatives, and conceal risk quantification. We have written about the “Five Frictions” hindering improvement in regulated appraisal valuation. Most other valuation […]