Daddy, how do You pick comps? We asked about comp selection in today’s “big data” world. We considered why we used three comps on a form, or put six comps on an accountant’s spreadsheet. But what are the different ways appraisers use to pick comps? We can use “good judgment” to pick comps. Or we […]
In an earlier post we noted that the ideal comparable data set is the complete CMS, the Competitive Market Segment(c) , not just three comps. Some readers disagreed, believing that three comps is enough. A primary reason for the use of all sales which competed directly with the subject property is that it improves the […]
Which comes first? The model tells us how. The tool tells us what. The more important may be the why. Why use a model? Why use a tool? Last Friday, December 8, we gave the first ever class on R for Appraisers. R is the tool. R is too cool. It’s clearly the toolbox of […]
I saw an article from the Washington Post, December 15, 2017, saying the administrative/enforcement branch of the U.S. government is banning the use of certain words or phrases. Two of the phrases include “science-based” and “evidence-based”. As many of you know, I am an active advocate of Evidence Based Valuation.© If valuation based on evidence […]
Statistics can seem difficult and esoteric. Data Science is new. Each can be scary. We see traditional statistics as required material for the appraiser license. Basic inferential statistics have also been curriculum touted as “advanced” analytics for appraisers. Multiple regression, often thought of as a statistical method, is really a mathematical algorithm, which depends on […]
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, […]
Take a sample or pick comps: different or the same? Most of us grew up first learning descriptive statistics: mean, median, standard deviation and such. Later, we learned that it was usually impossible or too expensive to get all the data, so we got a sample which seemed to be like the whole ‘population’ we […]
We talk a lot about data. The Good. The Bad. The Biased. And how wonderfully important information is. But what really matters? It can be easy to get lost in the mish-mash of talk about data. Let’s step back. Why do we care about this? We care because it is useful as an input to […]