Modern Appraisal Language (objective vs subjective)

[Tom D]

well-maintained means what. it's a very wide description of where some condition may fall, based on what. your suburban attitude in the inner city. i have never used it cause it's difficult enough for some appraisers to understand the line between c4 & c3, with c4 having such a wide effective age variance. why not also use it for location, well-located. or view, well-viewed. or how about the value well-appraised.

 

[J Grant]

USPAP defines an Appraiser as: APPRAISER: one who is expected to perform valuation services competently and in a manner that is independent, impartial, and objective..


USPAP does not require an appraser only to use objective language, or replace every possible nuance of a subjective word with a so-called objective word. The requirement for certain verbiage is a Fannie or Freddie overlay.

 

[djd09]

tell the little liberal word police to write the report...and you will sign it

 

[Dublin ohio]

These so called "trigger words" fall into three categories. 1) Words that everyone knows shouldn't be used. 2) Words that may or may not be a problem. But for argument sake we don't use and 3) Words that are chosen by those looking for something to be offended by that anybody with a modicum of common sense would say WTF

 

[Terrel L. Shields]

replace every possible nuance of a subjective word with a so-called objective word

By its very nature, expressing an opinion is a subjective conclusion to the data. In the absence of all inclusive data, the only thing that can fill in the gaps is our heuristic (subjective) analysis. As the SCOTUS said in the 30's a lack of sales in a town after a major factory shut down did not mean property did not have a value. And therefore, the opinion of a trained observer (appraiser) was superior to a random guess.

 

[Fernando]

Oh my! You racist!!!!! Welcome to Woke Nation.

Typical racist. Throwing out the racist card whenever they want.

 

[J Grant]

By its very nature, expressing an opinion is a subjective conclusion to the data. In the absence of all inclusive data, the only thing that can fill in the gaps is our heuristic (subjective) analysis. As the SCOTUS said in the 30's a lack of sales in a town after a major factory shut down did not mean property did not have a value. And therefore, the opinion of a trained observer (appraiser) was superior to a random guess.

Since words are important - I take exception to a few of your word choices - or more accurately, the thoughts behind them.

While an opinion is in part "subjective", it is not subjective that is not of personal nature. It is subjective in terms of professional experience and training - X years of coursework, experience and training and being out in the market every day means the analysis applied shows that X is a better, more credibly supported opinion than the other possibilities

I may personally and subjectively think a property is a POS and no buyer in their right mind should pay over 300k for it, but my professional take from the analysis of the market data is that the property is in demand and the market value opinion is 450k

We are merely trained observers, we are trained analysts. Different connotations.

WRT your example from the 30's, -SCOTUS were not appraisers then and they are not now. Judges make learned legal decisions but that does not always mean they know squat about valuation as we apply it. A lack of sales in a town with a closed factory that was a major employer means SOMETHING, compared to when the factory was active and there were 30 sales a year in the town. If an appraise can't figure that out then the appraiser was not competent for the assignment.

 

[glenn walker]

A good reason to eliminate two biased words which I hate - Opinion and Value .

Both are biased and often not supported by data or facts. A better solution for replacement is
( Opinion = Estimate and Value=Price ) Those are terms and labels used by all the other players in the real
estate world. The Fannie certifications would also be revised to replace Opinion and Value and to protect the appraiser from USPAP The label Appraisal would be called a "Price Evaluation"

These simple word changes would unchain the residential appraiser from the bondage of USPAP which the GSEs do not follow anyways.

THE WORD POLICE say USPAP does not apply because its a GSE Guideline and so why not break free of USPAP if it doesnt control what you can or cant say ? A easy fix

 

[Fernando]

I have different interpretation of Market Value and Appraised Value.
I use the term Appraised Value because it's my opinion of Market Value.
Evaluation sounds too opinionated more for real estate brokers.

 

[Surf Cat]

The list of bad words are being taken out of context.... the words by themselves can be construed as biased in nature.

However, in an appraisal report, anyone with a third grade reading level understands exactly what the appraiser is implying.

"Comparable #3 is "superior" to the subject's condition in that it has a remodeled kitchen, new flooring throughout, and has a newly exterior paint job".

The above comment justifies a downward adjustment to comparable number 3. It doesn't mean the white man lives in comparable #3 and the minority lives in the subject which the appraiser is biased towards.

Due to "the trend" all of my commentary is coming directly from the C ratings explanations.