Category: Appraisal

Appraisal news and appraisal tips for real estate appraisers – Your source for appraisal industry news, appraisers’ opinions, and discussions of appraisal issues

Preference Falsification - Why Licensees Parrot Notions They Know Are Untrue 18

‘Preference Falsification’ – Why Licensees Parrot Notions They Know Are Untrue

Preference falsification has resulted in some appraisers parroting talking points they know to be untrue.  People who live under authoritarian regimes rarely reveal their true feelings. They get used to lying. Parroting the party line becomes second nature in oppressive societies. It’s not a reflection of one’s moral compass but a survival mechanism. In his book “Private Truths, Public Lies,” Timur Kuran, an economist and political scientist at Duke University, writes about this disconnect, known as “preference falsification.” Preference falsification is dangerous because it lends an air of permanence to structures that are brittle and susceptible to sudden collapse. Kuran...

Rethinking Seat Time Requirements for Online Exams 8

What Does Seat Time Serve?

What purpose does “waiting” serve (a.k.a. known as “seat time”)?  It was a rainy weekend, so I thought I’d take online classes to meet my continuing education requirements. I’ve always been a fast test taker, often trying to be the first person in the classroom to bring my answers to the proctor first. I’m one of those annoying people, but if I pass the test, should I be penalized for taking the test fast? For my first appraisal licensing exam years ago, I finished it in around 40 minutes, but we were given 2 hours to take it. Should I...

AVMs The Not So Accurate Magic Bullet 18

AVMs… The Not So Accurate Magic Bullet

That article mentioned three on-line services which claim to provide accurate property values. In alphabetical order, those services were REDFIN, ReMax, and Zillow.  Folks, in all the diatribes against appraisers by people who believe “we” have built-in systemic bias, the topic of AVMs has come up. Some of the diatribers apparently think that using an AVM will magically produce an accurate property valuation, while eliminating bias, and appraisers. Well, not so fast. A while ago I saw a ‘consumer facing’ article telling people how they could get the value on their home. That article mentioned three on-line services which claim...

Visualizing Market Activity Using Graphs & Trendlines 4

Visualizing Market Activity Using Graphs & Trendlines

Spreadsheets and graphs are powerful tools for appraisers. With proper data, and incorporated into reports, they can enhance your professionalism and decision-making ability.  Appraisers, this article will highlight the process I use to bring clarity to my research and analysis of ‘comparable’ properties. This completed process becomes an exhibit in all my appraisal reports because it helps the Intended User(s) visually see what the market has been doing over a known time period. The exhibit graph also indicates a daily rate of change for the sales over the time period, which can then be applied as a ‘time’ (market) adjustment...

DEI Bosses at Financial Institutions Have a Problem - Diversity 10

Top DEI Bosses Have a Problem – Diversity

The ranks of the new DEI bosses at the financial institutions are no more diverse than the appraisers their institutions see as the enemy. If the lack of diversity of appraisers is inherently bad, how could the same not be said for the DEI bosses?  A full 93 percent of U.S. birdwatchers are white. Just 4 percent are African-American and a paltry 1 percent are Asian-American. Just 5 percent are Hispanic (which includes both blacks and whites). This was according to the U.S. Fish and Wildlife Service as reported in National Geographic a number of years ago. Another study found...

Appraisers Are Historians...Tracking the Motivations of the Moment 18

Appraisers Are Historians

It is gratifying when appraisers are correct, and the AVMs burn; unless you invested in their stocks.  I mean no disrespect to the modelers of the Automated Valuation Models (AVMs) or to Zillow for relying on their AVMs. As an appraiser since the 80s, I have yet to find a computer that can tell me if I want vanilla or chocolate ice cream. Does the buyer want more acres, or less grass to cut? I will admit that a raised ranch, a two story farm house, a colonial, a split level, and a Dutch colonial can all sell for the...

Appraisal Institute Shows A Canadian “Racial Bias” Sting Video And The Audience Almost Came To Blows 14

AI Showed this Video and Anger Ensued

At a recent meeting, the Appraisal Institute showed this video and anger ensued…  The following video was aired in Canada by CBC in March 2021 and has nearly a half a million views.   At a recent meeting, the Appraisal Institute showed this video and anger ensued. The audience was deeply divided, and the conversations almost came to blows. My guess from past actions of AI CEO to remove the diversity committee would assume the FOJs want to continue to hope that this issue goes away and will continue to do little as an organization. And without Rodman’s leadership on...

Racket at Attorneys General Group Will Ring Familiar to Appraisers 1

Attorneys General Shady Business

Racket at Attorneys General Group Will Ring Familiar to Appraisers The nation’s licensed real property appraisers will recognize a scheme run by a nonprofit known as the National Association of Attorneys General. It will remind the former of the abuses visited on them by a tiny, free-spending 501(c)(3) publisher and its captured federal minder. The National Association of Attorneys General describes itself as a nonpartisan national forum for America’s state and territory attorneys general and their staff members. The group has close ties with trial lawyers, who bring tort cases on behalf of the states’ top law enforcement officers and...

Hit Pieces & Diatribes Against Appraisers Based on Census Tracts 15

Diatribes Against Appraisers

What’s even more frustrating to me is none of the well-known appraiser organizations have offered any public rebuttal to any of these hit pieces, or explained how the appraisal process works as a way to defend appraisers… Census Tract data delineating RACE of the population is the only ammunition the people doing these hit pieces can use to attack appraisers. Appraisers, this is a long article but it’s important, as it reveals how you are being discredited in the work you do. Yet, ‘we’ must begin doing some introspection of what we are or have been doing, and make necessary...

UAD Composite Property Data Info Released to the Public 10

UAD Composite Property Data Info Released to the Public

Appraisers, since 2011, the GSEs (called the ‘Enterprises’) have been collecting and analyzing appraisal data using their proprietary Uniform Appraisal Dataset (UAD) which was overlaid on four of the standard GSE appraisal forms, SFR’s and Condo’s only. Ever since then, appraisers and other users have complained that none of that data was available. Well, now it is available, but not highly detailed down to specific properties. See below for the web site link. Some of that data is granular down to specific Census Tracts, which appraisers seldom, if ever, use in their market analysis to determine comparable sales and their...

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