The USPAP (Appraisal Standards) publication starts with a self-telling paragraph titled: “ABOUT THE APPRAISAL FOUNDATION.” This paragraph presents the Appraisal Foundation’s self-claimed place as “the nation’s foremost authority on the valuation profession.” This “foremost” claim immediately places it in contention with other governmental and professional standards. The declared self-image conflicts with the reality. Alternative and […]
Appraiser education is about a proven and “well-established” process! Developed nearly 100 years ago! The idea is to balance demand on supply, then explain where the subject fits. 1930s: Find some comps, compare, conclude. 2000s: Pick some comps, adjust to fit, conclude. Yesterday: Pick good comps, adjust, adjust, conclude. The embedded old ways obstruct modern […]
Is thinking necessary? Are there different types of thinking? Can I avoid thinking about this? As the appraisal profession transitions to data analysis methods – we discover that judgment becomes more important – not less important. In fact, it does require we think about thinking! Let’s go! We can contrast a critical thought process with […]
The education question — what is more important? The content of appraiser training, or how it is delivered? Appraiser education “marketability” is similar to appraisal marketing itself. Buyers of appraisals and buyers of appraisal education judge by three things: Cheap; Fast; Good. “Pick any two” says David Towne in his graphic. Anyone can provide classes. […]
EBV (Evidence Based Valuation©) is the future of professional appraisal. EBV is the best response (and advantage) to the dramatic changes in residential appraisal practice. Change in the nature of commercial/industrial valuation will follow, as it usually does. Editor’s Note: This is Standards, part 3.18 of George Dell’s series on How Do I Move to EBV? […]
We’re gonna crash! Now What? An appraiser’s job is to reflect the market. A couple of questions: What is “the” market? And how do I reflect? I like to divide consumer behavior into two thought patterns: Micro and Macro thinking. Micro thinking is under the assumption that the buyer is buying for personal use – […]
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, […]
A dictionary definition of “adjust” is: “alter or move (something) slightly in order to achieve the desired fit, appearance, or result.” When I “carefully” pick some comps, I use my judgment to need as little fudging as possible. But it never seems to work out just right. There are three practices to adjust the fudging: […]
Scope of Work is required in legacy appraisal practice. Data Science (and Evidence Based Valuation) are more based on principles of good science. Editor’s Note: This is Standards, part 3.11 of George Dell’s series on How Do I Move to EBV? Links to the earlier posts are here. To sum up, the goal of traditional […]
Analyst Appraisers are replacing “Opinion” Appraisers! (Trust me … ) Why? How? Huh? In the late 1900’s, appraisers were handicapped! Typewriter. Telephone. Assessor data. Quarterly MLS comp books, No compiled commercial data at all! Collecting comp data was 80% of the battle. Get four or five and you were “almost done.” Make some adjustments from […]
How do you measure “close enough” to a market value? We have standards you know! Editor’s Note: This is Standards, part 3.10 of George Dell’s series on How Do I Move to EBV? Links to the earlier posts are here. Valuation is numbers. Some numbers are numbers, like building SqFt. Other numbers are exact like […]
Is USPAP biased? (Appraisal Foundation, Uniform Standards of Professional Appraisal Practice) Is this possible? It can’t be! This part 8 of a multipart look at issues in valuation standards. Editor’s Note: This is Standards, part 3.8 of George Dell’s series on How Do I Move to EBV? Links to the earlier posts are here. Let’s […]
Change. It’s clear that appraisal, as a vocation, has changed. Many appraisers are considering new careers. Others are preparing to meet new demands. Yet others are doing . . . nothing. Which mind are you? Escape. Retool. Or be in denial. I have taught with Valuemetrics.info for over 17 years now. And was on the […]
Workfile is required, (or not?). This part 7 of a multipart look at issues in valuation standards. Editor’s Note: This is Standards, part 3.7 of George Dell’s series on How Do I Move to EBV? Links to the earlier posts are here. USPAP WORKFILE The “workfile” concept works well as an effort at documenting an […]
Standards enforce appraisal review as well as development and reporting. Editor’s Note: This is Standards, part 3.3 of George Dell’s series on How Do I Move to EBV? Links to the earlier posts are here. This is the third part topic of the larger topic of how standards may help or hinder the move into […]