Biased thinking, biased analysis — a part of the appraisal process? The Appraisal Institute is starting to address some bias-related critical issues — head on. Cindy Chance, the CEO of the AI, in her recent posts noted the role of human bias as a natural phenomena of the survival of the species.  She cited the […] The post Biased Unbiasedness? appeared first on George Dell, SRA, MAI, ASA, CRE ..read more

Inferential statistics, at its core, is concerned with making inferences about a population based on a sample drawn from that population. It involves analyzing sample data to draw conclusions about the broader population because the broader population is either too large to analyze, unknown, or hypothetical. While invaluable in many scientific disciplines and research contexts, […] The post Is Inferential Statistics Relevant? appeared first on George Dell, SRA, MAI, ASA, CRE ..read more

The second of our “foibles” in USPAP may be from that same paragraph on page (ii), noted last week.  This paragraph effectively sets the mission statement for the Appraisal Foundation. The paragraph is titled:  “ABOUT THE APPRAISAL FOUNDATION.”  It states the AF provides “guidance on recognized valuation methods and techniques for all valuation professionals.”  [Emphases […] The post USPAP Fallacies, Foibles, and Violations? Part 2 appeared first on George Dell, SRA, MAI, ASA, CRE ..read more

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 […] The post USPAP Fallacies Foibles and Violations? Pt1 appeared first on George Dell, SRA, MAI, ASA, CRE ..read more

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 […] The post Education Stagnation Repudiation? appeared first on George Dell, SRA, MAI, ASA, CRE ..read more

Transaction costs are added to every property transaction.  Is this add-on a fair addition to the fundamental, intrinsic value a buyer gets?  Is it part of the value of the home?  Or is it something else?  Is this a public policy issue?  Is it an appraisal issue?  And, is it yet one more question about […] The post Creepy Transaction Creep? appeared first on George Dell, SRA, MAI, ASA, CRE ..read more

Accuracy measures how close is a value to the true/actual value.  Who cares? Accuracy is a professed desire of most users of valuation services.  However, today’s conflicted regulations, legacy practices, and obsolete standards — do not have accuracy as a goal! The overarching goal of appraisal today is not “be accurate” — it is “be […] The post What is Appraisal Accuracy? appeared first on George Dell, SRA, MAI, ASA, CRE ..read more

“I never make adjustments,” said the MAI who first trained me.  He was a top litigation appraiser.  He explained that if he made an adjustment he had no way to explain how he got the number when cross-examined by the opposing attorney.  Instead, he used what is called ‘qualitative analysis.’ The Appraisal of Real Estate […] The post Are Adjustments Necessary? Part 3 appeared first on George Dell, SRA, MAI, ASA, CRE ..read more

The word “modernization” has a meaning different from what I thought. It seems to depend on who is using the word.  To me, it just meant “get with it!”  To our GSEs (Fannie Mae and Freddie Mac), it means something special. The dictionary definitions and explanations focus on the social and even political aspects of […] The post What is Appraisal Modernization? Pt 13 appeared first on George Dell, SRA, MAI, ASA, CRE ..read more

“Market” – A word poorly understood, and often misused. A gathering or place for buying and selling things.  It can be physical, or virtual, and involves at least one third party for competition.  Perfect competition is when you have many buyers and sellers.  A real property market is seldom or never perfect. A “market” for […] The post What is The Market? appeared first on George Dell, SRA, MAI, ASA, CRE ..read more