Actually, they are not new. The economics are not new. The designated three alternatives — cost, income and comparison — approaches remain valid. What is new are today’s technologies. The ones important to us are: 1) the extensive and complete data bases of market data, 2) computation power and algorithms, 3) interactive brain-machine interface. The new […]
In our second fallacy, we begin with a question: have you noticed how a new thinking context reveals weaknesses in the traditional appraisal process? The new thinking context is that of data science. Data science reflects dramatic evolving changes. The cause is simple, but twofold. First is the availability of market data. Second is the […]
There is a lot of talk about the wave of technology changing appraisal. What can you do? How can you be ahead of the wave? Is there hope? A wave of new technology means new tools: statistics, deep learning, big data, computation, data science, and brain-machine interface. But they need people. People qualified to use […]
What does it mean “appraisal modernization?” [This is Part I of a series which continues for the next two years, on a monthly basis. We will consider not only the ideal future, but the path to get there – for both users and providers]. This is silly. We just make appraisal more modern! Hmmm. So, […]
The legacy vs the upstart? What is the one single big difference? The traditional appraisal process is accepted. The Data Science viewpoint is new. (John Tukey predicted the impact of computer power on data analysis as an empirical science – in 1962.) Traditional appraisal has a proven legacy: It focuses on property analysis – leading […]
Science is “systematic study through observation and experiment.” A method. But wait, there’s more! Science is both a process and an organized way of thinking. It follows some basic principles. Darn! It seems science does not care if you believe in it or not! There is process in science: There […]
How can we fix the excess of appraisers? Easy — we do what we have always done, each time . . . 1) We will raise the standards (“cost of entry”). 2) We will make it harder to become an appraiser; 3) Let the lower fees discourage newcomer appraisers. In past issues of the Analogue […]
“A new valuation modeling paradigm” are the words used by the late Dr. Marv Wolverton. He is the author of the Appraisal Institute’s book on statistics for appraisers. He created the term in a response to my peer-reviewed Appraisal Journal article: “Common Statistical Errors and Mistakes: Valuation and Reliability.” The article itself can be summed […]
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 […]