At times, it is good to ‘take stock’ of what really matters.  We make new resolutions to do better.  Such resolutions often fail because we avoid looking at the underlying issues.  We can assume the new path should simply be a stronger more forceful repeat of the old.

Or, we can be skeptic, not assume the old ways are the right ways.  And ask what really matters?

So, what is appraisal really about?  What do our clients really need?  Should we just do what we have always done, just with more gusto?  Let’s look.  What’s important?

A short list of what’s important should include good judgment and reasoning, an opinion which is credible (worthy of belief), and be understandable to the user.

Good judgment comes from reasoning abilities as well as affect.  Reasoning comprises three types.  We relate each of the three types of analytic reasoning in the Valuemetrics.info classes (Stats, Graphs, and Data Science).  “Affect” is a psych term for how we respond with feeling or emotion and intent to situations.  Yes, while reasoning is important – affect is about how we view our life.  It can come down to a decision to lead an ethical life, or a life of greed and slippery duplicity.

Credibility is defined as “worthy of belief.”  So, it appears an appraiser must strive to be worthy.  To be worthy one must be persuasive and provide argument – “by relevant evidence and logic.”  While persuasiveness can be quite subjective – argument must include those three important words:  relevance, evidence, and logic.  Relevance means the research answers the right question.  Evidence means the right information has been selected.  Logic means the appropriate algorithms are modeled to lead to an answer which is true and sure.  Trueness means accuracy, or the answer approaches the truth.  Sureness means precision, or how certain you are about the result.  The right question, the right data, and the right algorithm.  Credibility requires all three:  relevance, trueness, and sureness!

Understandability means the analysis is clear to the intended reader.  A good delivery means presenting the data used, the reasoning, and expected reliability or usefulness of the result.  Reporting will include facts, logic, metaphors, and stories.  Metaphors are like comparables – the subject is like these sales . . .  Stories can help explain the remaining ‘subjectivity’ in individual comparables.

As we apply these fundamental truths of what is appraisal – we realize that there is danger in new untried ways of doing things.  Yet we also must consider the danger of continuing to do thing the old way.  Assuming the old reliable is the easiest.  Justify that everyone does things the old safe, ‘proven’ way.  And even our standards say there are only two true tests of the right scope of work:  Is it what our peers would do? And, is it what our clients expect?

Yet the test of a professional is to be at the leading part of the competency curve.  To not wait until clients demand better results!  A professional provides help to clients to identify their problems and challenges – and suggest solutions.  Our professional organizations should be doing this, but I as an individual can also take the lead!

If I, as an individual, must resolve how to be in the next year or next 10 years – I need to establish the proper place between the old safe ways of doing things, and the scary new ways of doing things.  The world continues to change.  It is essential to my family, my profession, my world, that I not be left behind. Technology, especially data, computer power, human interface, and data-stream delivery is here.  I have to blend the old safe ways with the measurable reliability of data science.

This isn’t difficult.  The basis of EBV (Evidence Based Valuation^©) is evolutionary.  It enables us to transition and enhance old ways, while enriching our competence, self-worth, and service to our clients, our loved ones, and the public trust.