Math In Appraisal Work

[ceasar duran]

Hi again. Another question for you guys. Can anyone tell me how much math a person should know when doing appraisal work? Thanks.

 

[Steve Owen]

Math is incredibly important. However, now we have calculators, therefore, arithmetic is not as big an issue as it used to be.

What an appraiser must know and understand is how to use an HP-12C and also the basic theory behind the math being performed. Many of the math functions done in the process of appraisal are relatively complex, especially if the property being appraised is an income property. In addition to math, I believe an appraiser should understand, at a minimum, college level statistics and economics. This does not necessarily mean that I believe someone who has not taken those classes will be incapable of appraising; but, they should undertand the principles taught in those classes. For some types of appraising, business math and accounting is also important.

 

[Smokey Bear]

Originally posted by Steve Owen@Jan 13 2006, 04:06 PM
What an appraiser must know and understand is how to use an HP-12C

The HP 12C is SOOOOO last century. They got these new things called spreadsheets now....

 

[DB]

Master the 12C and latch onto a copy of a book called Mini Math for Appraisers .... it will make a fine and necessary addition to your appraisal library..

 

[Mountain Man]

DB, I don't use the 12C, I prefer the 10B. That's what the instructors suggested when I took my first CCIM course. It has the same functions as the 12C, but is much easier to use.

 

[Tim Hicks (Texas)]

You should know math so that you can check your work and make sure your programs are working correctly.

Gosh, I miss the days of figuring SF by hand. NOT!

 

[Jan Roseberry]

Licensed/Certified can get by if they truly understand Algebra; General can get by with basic understanding of fundamental Calculus. Remember, I said understand not just pass the course.

 

[The Warrior Monk]

Ditto what Steve said, especially the statistics if you're going to be generally certified. Also the ditto with regard to understanding the theory behind the math. If you truly understand the math, you'll have an idea of where the results should be: e.g. numbers should be getting larger, smaller, or should be zero. Knowing the keystrokes only will give a one-dimensional view of the problem; it'll won't give the insight into solving more complex problems.

I'm personally not fond of the HP-12C. I prefer spreadsheets. I also have some financial calculator around here that I use (can't remember the brand), and the keystrokes, IMO, are more intuitive than the 12C. I'll use the 12C if I'm taking an AI course, just so I don't have to translate all the keystrokes on the fly.

 

[TC]

Very old joke

How much is 1 plus 1

Accountant: 1 dollar plus 1 dollar is 2.

Banker: 1 dollar plus another dollar compounded will equal more than 2

Appraiser: What do you need?

That's all the math you need!!!!


Math for residential is minimal, 8th grade will get you by.

and to those of you who don't like the HP-12. who cares

TC

 

[Couch Potato]

While basic arithmetic is not really a needed skill due to software and calculators a solid foundation in mathematics is very much needed. If math was a struggle and not fun when you were in school, you should probably do something else. You can be a residential form filler with little mathematical skill, but would probably find it unrewarding and at times confusing. Appraising is not rocket science, as many have rightly said, but pattern recognition, formula creation and linear algebra are needed daily.