Appraisal modernization has been touted in different ways.  It depends on the touter.

“Modernization” is a good word for marketing.  But what is “modernization” selling?  Is it selling modern technology?  The partitioning of appraisal workflow (initiator, AMC manager-selector, data collector-researcher, inspector, analyst, reporter, reviewer, decisioner)?

Standardized uniform data sets (UAD) are ever more detailed, subdivided, and organized far beyond how buyers behave.  Review/audit machine methods standardize between appraisals, not make them internally consistent.  Statistical technocrats say, “Just give us the data and we can figure it out”.  Appraisal artists say, “No machine can replace my superior judgment and years of experience.”

Editor’s Note: This is Standards, part 3.17 of George Dell’s series on How Do I Move to EBV? Links to the earlier posts are here.

When I first heard the term “modernized appraisal,” I was excited.  It seemed the world had begun to shift to the science of data analysis, away from the antiquated “pick comps, make adjustments” technique.

And AVMs simply try to eliminate human “interference” while avoiding regulations and standards through proprietary algorithms.

I thought “modernization” meant the proper realization of computer power.  The sharpening of appraiser skills and judgment.  The optimizing of the brain-machine team!

Nope.

It turned out “modernization” meant more detailed data sets, adding another layer of process and people to coordinate.  Another layer of “inspectors” who will also need competence measures, through testing, training, licensing, and insurance and regulation.  The creation of these, “IMC”s – Inspector Management Companies, will add a new layer of regulators and administrators to administrate the administrative law yet to be written. That should really speed things up!

Sounds to me like the same-ol same-ol, pick-comps-make-adjustments process reorganized.  (Like moving around the deck chairs on the Titanic!)

And EBV?  What about Evidence Based Valuation^©?

It’s not just another layer.  It’s not a deeper, complexer data organizer.  And it’s not a replacement for practical, real property experience.

EBV^© actually goes the opposite way.  The secret is flexible integration, not separation.

EBV is Data Science applied to valuation and risk measurement.  Data science optimizes computer power and expert judgment.  EBV sharpens and directs appraiser judgment.  Then, EBV automates the rest, under the competent field-related expert – the appraiser.

EBV makes it possible to plug right into interactive GSE forms.  EBV^©, fully applied, provides a complete digital data, analyses, graphs, and comments in one place.  A comprehensive appraiser’s workfile.

EBV can be a full narrative, restricted, or a ‘form.’  EBV utilizes all the relevant available data.  It applies the appropriate algorithms at the right places.  EBV measures markets. It does not just compare comps.

(The ^© copyright is to prevent abuse and misuse of the description by others.)