Will there be a need for traditional “appraisal” in 5 years? We think not. Some 25 years ago, I was education chair for my Appraisal Institute Chapter. Our ‘custom’ seminar considered the topic of technology replacing appraisers. The conclusion was, especially for residential appraisal, that AVMs would take a great market share. Worse yet, because […]
A better ROV! Please reconsider the direction of your boat. Try this bigger oar. And use it only on the right side of the boat. Appraisers have long been asked to “reconsider” their opinion. Now we have a more official “standardized process” which affects appraisers, lenders, AMCs, GSEs, and of course, the borrower. This part […]
It is easy to be critical. Harder to be “right.” In order to be really right, it is important to know how to be very critical! Critical thinking is a professional must. Rule #1: Remember that imposing your belief comes first. Rule #2: How you got to your starting position doesn’t really matter. Rule #3: […]
ROV (Reconsideration of Value) is now in the boat. Is it safe? We suspect this will be a long row to get to the chosen island. Just row! It is likely this topic will be the focus of more of our “analog blog” series. To read part one of this series or other blog post […]
Pick comps, make adjustments are the “recognized methods and techniques” which must be “correctly” used by appraisers. Originally, the practice was just “find comps and reconcile.” Some hundred years ago, the main task of an appraiser (usually also the local broker) was to track down sales. This involved phone calls to agents, people they knew, […]
Appraisers are taught that there are three “approaches” to value. Follow the path, and you are safe. Standards, regulations, users, and peers all expect the “process” to be followed. Follow it, and you are safe. Appraisers are also harangued to be ethical and unbiased. Just be “impartial, independent, and objective.” No problem. Problem. Appraisers are […]
The new UAD and URAR come on together. In this second part, we prepare to look at possible unintended consequences. (Catch up and read part 1 here.) In later continuing parts, we will look at how the URAR/UAD format “dynamic” may affect users: appraisers, lenders, AMCs, and others. Finally, we might look at how the […]
Should the AI (Appraisal Institute) teach AI (Artificial Intelligence)? This is Part 2 on the Series of the Appraisal Institute and Artificial Intelligence. Read Part 1 here. AI tools, such as ChatGPT, depend on prior knowledge being published somewhere out there in the cloud. Somewhere. The AI (the education provider) continues to emphasize the supremacy […]
Recently, Keith Wolf (representing Freddie Mac), coined a new term for claims about adjustments, calling it the “adjustment fallacy.” Adjustments to comparables first arrived on the scene as a way of explaining differences between the subject property and a compared comp. (A way to ‘support’ an opinion comparison.) In theory, an adjustment is supposed to […]