Digital disruption is what happens when new data technology and new business models crash into the old goods-and-services ways of doing things. But of course, this cannot possibly affect appraisal. After all, appraisal is about judgment, sharpened by years of experience, education and training. But it’s worth a look. Is it possible? Several causes of […]
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 […]
The new body of knowledge for valuation incorporates much of the old appraisal body of knowledge. What is the difference? The fundamental dividing line is actually simple. Editor’s Note: This is part 1 of a series. Part 2 is here. Traditional appraisal practice was developed almost 100 years ago — in a dramatically data-different world […]
New technologies require new skills. The bad news is that new data science skills are not taught in appraiser education. The good news is that the new technologies are things an appraiser can sell. Let’s look at the good news! Data science skills include the ability to: Identify the relevant data. Turn the data into […]
Editor’s Note: Why Did I Attend the RStudio Conf 2020? is a new Guest Post written by Bruce Hahn, SRA, MAI, CRE. We’re excited to hear about his recent experience at the RStudio Conf 2020. He is exploring and expanding his skills using R and RStudio to create his appraisal reports. He created his website, […]
[This is Part 3 of a series on Appraisal Modernization] “Appraisal modernization” is a crisp way to describe needed change. But what is really needed? To consider this question, in part 3, we must look at underlying motive. If we only look at the surface solution stuff, like “hybrid appraisals” we may be distracted from […]
Most of us grew up being taught pie chart statistics. In elementary school that’s how you probably learned about data and graphing. Proportions were taught by using a pie chart. This seemed relevant because it dealt with the practical problem of slicing a pie so five kids could share. Much else often is taught not […]
I have been accused of using new big words, when old little ones would do! Yes. Guilty. Why? What is the context? What are the goals? What is the path to the goals? The context is that most readers of these blogs are appraisers or collateral/risk people. The context is also that all related financial […]
AVMs (Automated Valuation Models) have been around for over 20 years now. Appraisals have been around for 100 years now. Why no winner? Let’s look. This is the first part in a series of coming blogs that will compare and contrast “automated” versus “opinion” valuations. Stay tuned to hear the unexpected surprise climax of this […]
I first heard the word unlearning at an AI national conference. The speaker said that unlearning was as important as learning. Perhaps more so. We human beings tend to want to maintain the status-quo, unless somehow compelled to change. Change is not easy they say. Psychological inertia involves inhibiting any action, just because it causes […]
Postpone appraisal modernization. We can do that later. Why? Change and improvement should, normally, come from a profession. When a profession fails to bring improvement, eventually consumers/clients press for change. That’s what seems to have happened. The two largest consumers of appraisals now have pressed for change. Fannie Mae and Freddie Mac have realized the […]
We have heard a lot about “modernizing” the appraisal process, particularly from the GSE’s (Fannie Mae and Freddie Mac). What is clear, is that the path is not clear. The GSEs, pressing for an improved valuation product, are in a difficult situation. On one hand, they are supposed to cooperate. On the other hand, they […]
Reform? What is the real problem? We know of meltdowns. We hear of bias. And we see the “American Dream” may be just a dream. So what about government? Why? And what part might appraisals play in these issues? More importantly, what keeps us from implementing solutions? Can government agencies (such as FFIEC and the […]
No report. Can it be? Does modernized appraisal require a modernized report? And how about non-appraiser appraisals (valuations)? (Here we use the word ‘appraisal’ in its generic public meaning.) In the past, our thinking, expectations, laws and regulations, have separated the development of an appraisal from the report of an appraisal. In the past, that separation […]