Objective vs Subjective Language

[NTX]

Sorry if this post is a repeat of another post. I still haven't mastered this site and searching for old posts.

Within our firm, we had a debate today regarding page 1 of the exterior/interior description. I used /New, /Good, /Avg, and /Poor for condition descriptions. However, this is flagged as potentially subjective language. I turned this feature off in Total btw. However, I had another appraiser say they used /New and /Used. Okay, but if I used Marshal and Swift or NADA or any other valuation tool, they use the descriptions for condition like average, good, poor, etc.. How are you handle this or are you even worried about this? I have typed over 2500 reports and have never received a revision for this language in this section.

 

[DWiley]

Sorry if this post is a repeat of another post. I still haven't mastered this site and searching for old posts.

Within our firm, we had a debate today regarding page 1 of the exterior/interior description. I used /New, /Good, /Avg, and /Poor for condition descriptions. However, this is flagged as potentially subjective language. I turned this feature off in Total btw. However, I had another appraiser say they used /New and /Used. Okay, but if I used Marshal and Swift or NADA or any other valuation tool, they use the descriptions for condition like average, good, poor, etc.. How are you handle this or are you even worried about this? I have typed over 2500 reports and have never received a revision for this language in this section.

View attachment 91019

Fannie and Freddie both have recently emphasized the use of subjective terminology without providing proper context. The simple solution is to continue to use Good, Average, Fair, etc. and to provide definitions (just as you provide definitions for the C and Q ratings) so that it is clear to a reader what you mean by those terms.

Many seem to think that "we all know" what average means, but other threads here demonstrate that not everyone is on the same page when saying something is in "average" condition.

 

[Terrel L. Shields]

but if I used Marshal and Swift or NADA or any other valuation tool,

What Danny said, but you might reference the M & S or other tool's descriptors in your definitions page. Reference to the descriptions they provide is a more concrete method than simply stating it.

 

[J Grant]

In the future, put in a proactive statement about the context of any of these dreaded words and be done. This kind of post appraisal return for nit-picking is driving everyone crazy and not recouped in $ -

 

[djd09]

they keep shoving the word police down your throat....

 

[Tom4value]

The whole purpose of this is to avoid bias in valuation. Of course, it gets appraisers and lenders double and triple guessing themselves. Throw in software that just flags words and you just add to the confusion.

“Good”, “average” and “poor” still have a place in an appraisal report but only on tangible items. These words are helpful and necessary in describing condition of appliances/mechanicals/windows/roofs, etc. It is also needed in describing quality and other features that our peers would be looking for that affect value and marketability.

The focus is on descriptions of less tangible things that can be open to interpretation. The obvious is “good/bad neighborhoods”. Of course, we have avoided these descriptions for years. What is the modern focus is phrases like, “good access to employment”. Well, what does that mean? Some buyers would be fine with an hour’s drive while for others that would be a deal killer. “Shopping, schools and services are nearby.” Some might think “nearby” is a half mile, others would say less than 5 miles. Stick to distances and or times to avoid questions.

Bias can be a positive or a negative that readers can interpret as factoring into you conclusions without basis. The trick is to stick to factual information wherever possible and let your comps and explanations of your conclusions dictate value and marketability.

 

[sputnam]

'Average' is subjective... but so is your opinion of value. Context matters. While it may be subjective, 'average' may not always indicate bias. Context matters.

 

[Vermonter]

Average' is subjective

Technically, it's not, but why let that stop the word police

 

[Tom D]

Use av or avg for material condition. The system hasn't figured that out. Maybe new, almost new, a little bit older, a lot older. Gets to the point of nonsense word salad. The term 'used' is a dumb term, obviously if not new house, used. But since they want a numbered c condition overall, 'used' it to vague.

Almost if it gets to a nonsense point, then i start putting a c condition on items, which in effect makes sense as a better description.

 

[George Hatch]

C3 and Q3 are defined terms where the details are spelled out, right?