PAREA program

[Francois K. Gregoire]

So.... a fellow associate is taking that 7-hour bias class that's required now to renew his license. Here's an excerpt from the class.

You need to come up with a "Restorative Competitive Value" which means switching the primary emphasis away from location to similar physical features and then location and time of sale. Even across neighborhood boundaries. Then give the bank 2 values, the regular market value and the restorative competitive value.

Okay Mr. Lender.... just send a property data collector out there and "you" decide the value.... that or just waive it.

Back in 2023, I was part of a panel discussion including "restorative valuations." Our panel followed one that provided an introduction to the concept. It was interesting, because I had never heard the term prior to the first panel discussion.

The questions to the appraisers on our panel on the subject were, of course, focused on "would restorative value be more advantageous to certain communities?" My answer was an appraiser's answer; "it depends". A competent appraiser is capable of developing and reporting an opinion of value. That value opinion depends on the definition of value. If I remember correctly, no definition of restorative value was provided. The term sounded good to them, and that was good enough for them at that time.

The comment above is the first time I've heard the term since then. I just finished the 7-hour Valuation Bias and Fair Housing Laws and Regulations course myself. The term was not used in the class I attended, and was not mentioned in the course materials.

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[sputnam]

I completed the 7 hour bias class. No mention of "restorative valuations". Maybe that's a topic particular to your course provider. Whether it is or whether it isn't, I'm going to remain a 'Location, Location, Location' person.

 

[Non Sequitur]

I completed the 7 hour bias class. No mention of "restorative valuations". Maybe that's a topic particular to your course provider. Whether it is or whether it isn't, I'm going to remain a 'Location, Location, Location' person.

Unlike the USPAPpy torture course, providers were allowed to create their own content for the appraisers are biased course. So each course is different, and I’m not sure if that is a good thing. In addition to the ridiculous restorative value lesson above, one of the providers has a module centered around how showing up late or early to appointments is a cultural bias issue.

 

[Flakey]

The McKissock course has an imbedded video with the creator of restorative value trying to explain and justify his logic in an interview. It was torturous.

 

[shrubberyvaluation]

The McKissock course has an imbedded video with the creator of restorative value trying to explain and justify his logic in an interview. It was torturous.

I haven't seen it, is it a combination of sophistry and emotional appeal?

 

[George Hatch]

one

The McKissock course has an imbedded video with the creator of restorative value trying to explain and justify his logic in an interview. It was torturous.

Who is it?

 

[George Hatch]

They covered this thought exercise a long time ago on Sesame Street.

"One of these things is not like the other. One of these things just doesn't belong. Can you tell which one is not like the other before I finish this song"

Client: I want an opinion of Insurable Value. Can you do it?​

Appraiser: Of course I can. What's the fee?​

​

Client: I want an opinion of Liquidation Value. Can you do it?​

Appraiser: Of course I can. What's the fee?​

​

Client: I want an opinion of Fair Market Value for the IRS. Can you do it?​

Appraiser: Of course I can. What's the fee?​

​

Client: I want an opinion of Competitive Restorative Value. Can you do it?​

Appraiser: How dare you ask? That would be misleading because there is only one type of value under the heavens and the Market Value is its name.​

 

[George Hatch]

Meanwhile, the Appraisal Institute already has a fix for this sort of thing which cuts off the concern that a casual reader will misinterpret the difference between two different definitions of value in the same appraisal report. Just add an addendun which explains it:

 

[J Grant]

Don't worry about a competitive restorative value ( if any course includes it, which I personally doubt). If any instructors include it then it would be a way to fill up dead space about a topic that would take 30 minutes to cover.

 

[TerryRohrer]

( if any course includes it, which I perconally doubt).

Just about everything you don't believe is a fact. Here is a primer for you, from the primary promoter of CSV, who is the likely pundit on the video mentioned. Why do you doubt everything someone else reports because you are too lazy to find factual information?

https://norcal-AI.org/wp-content/uploads/2023/05/PP-Restorative-Competitive-Value-D.-Potts.pdf