Is it just change, a little change or a big change? What is the likely answer? There are two change possibilities: 1) You will be mostly replaced by a machine; 2) You will be running the machine in combination with your subject-matter knowledge. As humans, and as appraisers, we still have some natural advantages. But […]
Appraisers have always worked with data. In the early days, we’d go to the county courthouse to examine the possible types available in the county recorder’s sales that might convert into useful “comps.” An experienced appraiser had a rough idea of what was being looked for, taking the first step in converting unsystematic data into […]
Who cares if it’s reliable? It only needs to be “credible” – believable. Credible: “Worthy of Belief” Reliable: “Repeatability of findings” Credibility comprises both trustworthiness and expertise. It has both objective and subjective elements. One can also increase credibility by being a good salesperson by convincing the reader of your viewpoint. You form an opinion, then […]
The last economic meltdown happened because something wasn’t working. Appraisers can take two attitudes: 1) They are just reporters of “expected selling prices”; 2) They are just following standards. Is it the lenders and underwriters who determine risk, or is it appraisers? So appraisers can say they only do as they are told. Is […]
Graphs are pretty, have colors, and show things. Graphs are visual. The human ability to see and to visualize is stupendous. It’s the main connect between the world about us and our ability to think, reason, and make decisions. Visualization includes graphic plots, tables, maps, moving and interactive displays, including three, even four-dimensional interface. Part […]
This week’s blog, Do You Confirm Comps or Verify Them? is a guest post written by Timothy C. Andersen, MAI, MNAA, MSc, CDEI. See below for a more detailed bio. Do you confirm your comps or verify them? Is there a discernible difference between “confirm” and “verify”? Is one the due diligence of a professional? Do our […]
A hybrid is: The offspring of two plants or animals of different species or varieties, such as a mule (a hybrid of a donkey and a horse). Per my Google online dictionary . . . An appraisal hybrid, as I understand it, is two people, doing two parts of the appraisal job. One looks at […]
It was pointed out to me after part 1, that a hybrid like a mule, is sterile and the end of the biological line. Is this true about the hybrid appraisal? A hybrid appraisal, as applied today, means that someone other than the signing appraiser, usually an agent, goes out and does the property inspection. […]
This is Part Four in a series on Hybrid Appraisal. Be sure to read Part One, Part Two and Part Three. The term “hybrid appraisal” (as it’s currently used), means that the appraiser sits at a desk, while someone else (not an appraiser) looks at the property. It appears that the non-appraiser may or may […]
One appraiser brain says you must be “independent, impartial, and objective.” (USPAP) It wants to be good. It wants integrity and to sleep peacefully at night. But there’s another brain. It’s primal and wants to survive. It has other responsibilities: meet the bills, feed the family, pay the mortgage, and pay government taxes/fees. And recorded […]
The appraiser is supposed to be accurate. What is “accurate”? Dictionary meanings say accuracy is “the condition or quality of being true, correct, or exact.” Tell the truth. Can it be? Hmmm. A search for truth. OK. So how do we come to know the truth? Are we supposed to be paid truth-seekers? Cool. I […]
Bank regulators are nearing a decision to raise residential real estate transactions appraisal threshold to $400,000 from $250,000, for certain transactions. Perhaps it should be set to $2million, or $5million. It strikes me that we have two separate taxpayer regulatory/administrative/quasi-governmental organizations working in opposition. On one hand we have the Appraisal Subcommittee and The Appraisal […]
If your work is reliable, it’s credible. If it’s credible it may not be reliable. USPAP (Uniform Standards of Professional Appraisal Practice) defines credible as “worthy of belief.” So how does one strive to be worthy? Well the automatic answers are . . . automatic: 1) have education/training; 2) have experience; 3) have integrity. Let’s […]
You did a bad—a USPAP violation! They said so! Are they right? A violation. A strong word. Clear and succinct. Easily understandable by anyone. Of course. Black letters on white. Where in USPAP does it identify (for real property) what is a violation or not? We can look at three parts of USPAP; First there […]
Appraisers have been taught to first analyze the subject property. Is this correct? What would an economist do? Would she analyze the property, or figure out the market? Well yes, an economist would try to figure out a market. First, it’s important to consider what type of market we are talking about. What are the […]