Support and prove your adjustments! Never mind that it’s not possible. Just do it! Do that, or face the wrath of being declared in “violation” of USPAP. So what, exactly, does USPAP say about adjustments for real estate appraisal? Well? Go look it up. You have a copy. Did you find what I found? Yep, […]
Is it just change, a little change or a big change? What is the likely answer? There are two change possibilities: 1) You will be mostly replaced by a machine; 2) You will be running the machine in combination with your subject-matter knowledge. As humans, and as appraisers, we still have some natural advantages. But […]
How can this be? Only One? USPAP says there are three approaches. Licensing classes are organized around three approaches. There used to be “eight methods,” (Frederick Babcock, 1924), then seven (1932), then three (1960). Is it time for ONE approach? Perhaps the most important lesson today, to learn from the Babcock history, was his belief. […]
Appraisers have always worked with data. In the early days, we’d go to the county courthouse to examine the possible types available in the county recorder’s sales that might convert into useful “comps.” An experienced appraiser had a rough idea of what was being looked for, taking the first step in converting unsystematic data into […]
Why do we have scope creep? Possible answers include: The reviewer or clerk has to justify their existence; There is genuine concern about something; The work should’ve been there in the first place; It’s important to remember that our entire system of appraisal production and review is belief-based. It must be “worthy of belief.” We […]
Who cares if it’s reliable? It only needs to be “credible” – believable. Credible: “Worthy of Belief” Reliable: “Repeatability of findings” Credibility comprises both trustworthiness and expertise. It has both objective and subjective elements. One can also increase credibility by being a good salesperson by convincing the reader of your viewpoint. You form an opinion, then […]
Can personal opinion be objective? The definition of “Appraiser” in USPAP requires “one who is expected to be competent, independent, impartial, and objective.” Clearly, the definition requires delving into the mind of clients, users, and perhaps the public. Can this be true? Perhaps we can look elsewhere in USPAP for help. The definition goes on […]
There is evidence that human judgment WINS – the appraiser opinion beats the AVM and other valuations based on technology. In fact, I have often heard that the qualified appraisal, based on the human logical analysis – is the “gold standard” for the industry. This appears to be true of client groups, and appears to […]
This week’s blog, Do You Confirm Comps or Verify Them? is a guest post written by Timothy C. Andersen, MAI, MNAA, MSc, CDEI. See below for a more detailed bio. Do you confirm your comps or verify them? Is there a discernible difference between “confirm” and “verify”? Is one the due diligence of a professional? Do our […]
A hybrid is: The offspring of two plants or animals of different species or varieties, such as a mule (a hybrid of a donkey and a horse). Per my Google online dictionary . . . An appraisal hybrid, as I understand it, is two people, doing two parts of the appraisal job. One looks at […]
It was pointed out to me after part 1, that a hybrid like a mule, is sterile and the end of the biological line. Is this true about the hybrid appraisal? A hybrid appraisal, as applied today, means that someone other than the signing appraiser, usually an agent, goes out and does the property inspection. […]
Presumably, “public trust” is the foundational test. Have our institutions, rules, regulations, standards, and social expectations failed us? The purpose of the Uniform Standards of Professional Appraisal Practice (USPAP) is to promote and maintain a high level of public trust in appraisal practice by establishing requirements for appraisers. Preamble 2018-2019 Our mission is to foster […]
This is Part Four in a series on Hybrid Appraisal. Be sure to read Part One, Part Two and Part Three. The term “hybrid appraisal” (as it’s currently used), means that the appraiser sits at a desk, while someone else (not an appraiser) looks at the property. It appears that the non-appraiser may or may […]
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 […]
We read articles and advertisements on how to prove an adjustment. Is this possible? How wonderful it would be. To prove an adjustment, just push a button and bam! Out comes the correct answer. How could we have we missed this? Of course, if such a simplistic and exact answer was possible – anyone could […]