FHFA Request opinions from Lenders & others on what the new version of an appraisal will be.

[Zoe]

Maybe you are replying to the wrong post. Because this doesn't make any sense, I never said people who like doing hotels. Jeeez!

You insinuated appraisers pull stuff out of air and you don't. That is not true. You are confused.

 

[Zoe]

Well, there you go. The proof is in the pudding, as I very well expected.

With my method, I can tell you whether your adjustment for an intangibles is too high or too low, because of the very exact constraint on the sum of the intangible adjustments.

You really have no such method other than that, and I know that with 100% certainty. Thus, you are indeed "flying by the seat of your pants" on these adjustments, as are most likely 99+% of residential appraisers. Thus the animus towards appraisals by those specialists in the banks and lending institutions who study the accuracy of appraisals in large portfolios over many years.

Can you post that algorithm?

 

[Sadie]

Well, you have several "points", but you haven't supplied any substantive support in the form of logical arguments; just several assertions without any basis. And the phrase "think so poorly of your peers" implies something that is subjective judgement on your part. I would say, that other appraisers are locked into a system that was handed to them and there are an insufficient number of intelligent leaders in the appraisal world to set things right.

Much of the problem was the mentorship requirements for trainees. That itself, preselected lower IQ and docile people into the profession who were willing to work at substandard wages for a number years and do what they were told. Yes, some trainees were smart college graduates who went to work for MAIs for a number of years, but eventually discovered the system for career advancement was extremely defective. Leaders in the profession, and I could name names, would tell trainees that they simply had to "pay their dues" to get to the top, i.e. attain MAI certification. Roadblocks were placed here and there that thwarted their progress. The carrot stick so visible at the beginning of their career disappeared slowly but surely. Would an MAI in an office doing reasonable amount of business on the backs of maybe 5 college graduate trainees were smarter than him, actually take the final step to get them their MAI, or would they be thrashed around unendlessly in clerical work and research at ultra-low pay until they quit?

The Appraisal Profession was architected to its modern day form, through both intention and incompetence. The incompetence in Appraisal is truly systemic and will be hard to correct, should there ever be a serious effort. .... Because there is no one around in the profession competent enough to rearchitect and rebuild it. Stupidity breeds stupidity and that is precisely where the profession is at.

Yes, there are a few around who could do something, but not enough to reach the required threshold to make things happen.

The profession will stagnate, and probably die. But there is some hope it may turn around in another 30 years or so.

Of course you think poorly of your peers. here is your direct quote: "Thus, you are indeed "flying by the seat of your pants" on these adjustments, as are most likely 99+% of residential appraisers." Unless you think this is the better way to account for intangibles than the way you do it. If that is the case, you should probably hang up your appraiser hat.

our distain towards trainees is baffling. Weren't you a trainee? Was it such a horrible experience and poor training that you think that is the way it is for everyone? I pity you if this is the case. But it might account for your posts. Your statement has little relationship to the real world. If the training process is so bad, why don't you mentor and train the next generation of appraisers? Or may you are doing that which accounts for the bolded paragraph above.

 

[RCA]

Your talking intangibles.

Here you go:

7 Examples of Intangible Value

The definition of intangible value with examples.

simplicable.com

Put that in your pipe and smoke it.

Business goodwill is the typical business intangible. You actually can go out and do surveys to quantify that in some sense. Still it is not directly measurable.

The same goes for property intangible features, - they are intangible because you cannot directly measure them.

So you have presented a specious argument.

 

[RCA]

You insinuated appraisers pull stuff out of air and you don't. That is not true. You are confused.

Well then, give us a concrete procedure for measuring Quality, Condition, Functional Utility and View in an objective manner and then from that measurement also assign a monetary value in an objective manner.

If you can do the above, there is then absolutely no reason to take any number of sales comparables and adjust them to within 0.5% of each other.

You will fail.

Now, if you were a really bright person, IQ 150 +/-, sufficiently knowledgeable and experienced, I would give you a shot at this.

 

[Sadie]

Business goodwill is the typical business intangible. You actually can go out and do surveys to quantify that in some sense. Still it is not directly measurable.

The same goes for property intangible features, - they are intangible because you cannot directly measure them.

So you have presented a specious argument.

Do you ever listen to yourself? You make no sense, or maybe you just make sense to yourself.

 

[RCA]

Do you ever listen to yourself? You make no sense, or maybe you just make sense to yourself.

I should put the ignore button on for you, because you don't provide substantive arguments to back your assertions. But since you are the only one giving me the opportunity to express my opinions, I'll hold off on that for a bit longer. That is to say, I appreciate your worthless comments for ulterior motives.

 

[RCA]

Can you post that algorithm?

It's been posted many times with different wording. Here is an old demo from 2019:

Sample Valuation - Intangible Value Containment Approach

This is a heavily redacted report that was created using the Subjective Value Containment Approach

pvn.pub

Presentation I did at the Salford Systems Data Mining Conference 2006:

Salford Systems Data Mining Conference 2006 Presentation

www.valuationengineer.com

Intangible Value Containment: Stage I UML Diagram

Stage I of the Subjective Value Containment Approach is the most complex stage that spans Scope of Work (SOW) analysis, data analysis, data transformation, sandboxing of data.

pvn.pub

Intangible Value Containment: Stage II UML Diagram

Stage II of the Subjective Value Containment approach to value.

pvn.pub

Intangible Value Containment: Stage III UML Diagram

Stage III of the Subjective Value Containment approach to value.

pvn.pub

 

[Zoe]

It's been posted many times with different wording. Here is an old demo from 2019:

Sample Valuation - Intangible Value Containment Approach

This is a heavily redacted report that was created using the Subjective Value Containment Approach

pvn.pub

Presentation I did at the Salford Systems Data Mining Conference 2006:

Salford Systems Data Mining Conference 2006 Presentation

www.valuationengineer.com

Intangible Value Containment: Stage I UML Diagram

Stage I of the Subjective Value Containment Approach is the most complex stage that spans Scope of Work (SOW) analysis, data analysis, data transformation, sandboxing of data.

pvn.pub

Intangible Value Containment: Stage II UML Diagram

Stage II of the Subjective Value Containment approach to value.

pvn.pub

Intangible Value Containment: Stage III UML Diagram

Stage III of the Subjective Value Containment approach to value.

pvn.pub

You have several loopholes in there that are vague at best. I am not going to waste my time with you. I got what I asked for. Thanks.

 

[glenn walker]

OK Boys and Girls lets face the facts there are no appraisers on this forum who have a clue on how an intangible assets are valued but if it makes you guys feel engaged thats OK with me but it's laughable : )