Appraisal Bias

[alebrewer]

you are proud of being lousy at what you do....okay..(kidding- kind of)
This is about competence, not integrity - an appraiser who does not believe in point values yet puts their name on that very thing... what is that...

You just can't help yourself with the attacks... I guess I can add lousy to the long list of what you've accused me of being.

 

[alebrewer]

and it is not disagreeing with me, it is disagreeing with USPAP a- an appraisal is an opinion of value and it can be a point value, yet you say there is no such thing as a single point value and other related statements.

I've never said an appraisal cannot be expressed as a point value - I do it every day. What I HAVE said - and what is in COMPLETE conformity with USPAP - is that one point value within a reconciled range is no more, or less, supportable than any other point within that range.

 

[djd09]

i don't think anyone's opinion about a value range is going to push FNMA into a different thinking. we are required to give a pov, within support of the range for our benefit. having been in this business forever, we can only go the way the FNMA tide is carrying us. i doubt that any thread here has had even a 1% chance of changing the master's plans.

she is blaming others for her own confusions...typical

 

[Dale Floyd]

Yeah one in a thousand orders want only a range and not a point value, if that many, well you guys got your wish so enjoy all your leisure time.

It's obvious your clients do not trust you with some assignments, so I can't help you.

For the rest of us, who are true professionals and not just bank form fillers, we aren't limited because of bank policies and procedures.

Have a great week!! Very busy here, and I have several ranges to analyze.

 

[PrincessLeia]

There is nothing awry about accepting an assignment from a client requesting a range of values. In the legal profession, that's not uncommon.

There is nothing wrong with discussing the arguments that exists between high and low within any appraisal. If the comps are solid, and very similar, one would be foolish to ignore the adjusted range regardless of the final conclusion delivered.

Seriously - the appraiser is giving an "opinion" in the end.

Personally, I'd prefer to give value ranges. I think it'd be a lot more honest & reliable than a single point.

 

[alebrewer]

Personally, I'd prefer to give value ranges. I think it'd be a lot more honest & reliable than a single point.

While there is nothing 'wrong' with reconciling to a point value (we do it every day), I fully concur - a range will always be more supportable than a single point.

 

[Terrel L. Shields]

and it is not disagreeing with me, it is disagreeing with USPAP

USPAP has no problem with a range, nor point value, nor a benchmark you use to label something as higher or lower than something else.

a range will always be more supportable than a single point.

To me our analysis should 'tighten up' the adjusted values to a reasonable range... And that is nothing more than what the grid does. If your grid is actually wider after adjusting than before, then it is certainly wrong. But once you get to that supported range, then the final value you pick is based upon one of two things. Some final adjusted value based upon one sale or data point that is the most similar and most supported to the subject, or, your randomly selected "value" is just that. And in many cases, there are no dead to nuts machine precision arrows pointing to the exact number...even if all three sales are adjusted to an identical value, surely all three are not identical properties to the subject, even in cookie cutter Horton cheap built homes. At that point, the number YOU pick might be different from the number SOMEONE ELSE picks and it neither makes either one of you 'right' nor 'wrong'. At some point that final number is result of your heuristic analysis. And appraising is not science but it is not voodoo either.

heuristic (adj)
proceeding to a solution by trial and error or by rules that are only loosely defined.

 

[J Grant]

I've never said an appraisal cannot be expressed as a point value - I do it every day. What I HAVE said - and what is in COMPLETE conformity with USPAP - is that one point value within a reconciled range is no more, or less, supportable than any other point within that range.

You said point values are spurious, uou do not believe in them, that a property can not have a single point value.

Which shows you do it, but don't' really believe in it.

USPAP has no say wrt if a point value along a range is no more or less supportable, but a point value within a range should have a supportable reason for being the opinion and most appraisers or at least the ones who know what they are doing it for, can and do decide one of the point values is better supported and indicative than other choices.

 

[J Grant]

Personally, I'd prefer to give value ranges. I think it'd be a lot more honest & reliable than a single point.

But it would put you out of business. Do you understand that ?


Most clients and particularly lender clients need a point value. And if appraisers dont' believe they can develop a good point value the lender will look elsewhere to have it done. Have you noticed that the fannie waiver program ( value acceptance ) had removed aprox half the lender orders from appraisers because the entities bought your argument -s develop a range ( their AVM does the range) and let a nonappraiesr person pick the point value ( the lender's estimate of value is the point value for the property?

 

[J Grant]

It's obvious your clients do not trust you with some assignments, so I can't help you.

For the rest of us, who are true professionals and not just bank form fillers, we aren't limited because of bank policies and procedures.

Have a great week!! Very busy here, and I have several ranges to analyze.

lol I have great clients. It is just that I have not heard of any appraiser getting an assignment where the client only wants a range of value and does not want a point value.

I suppose it happens but it is uncommon. But that is a side issue to the topic