George Dell

MARCH 6, 2024

Accuracy measures how close is a value to the true/actual value. Who cares? Accuracy is a professed desire of most users of valuation services. However, today’s conflicted regulations, legacy practices, and obsolete standards — do not have accuracy as a goal! The overarching goal of appraisal today is not “be accurate” — it is “be […] The post What is Appraisal Accuracy?

Appraisal 195

Appraisal Valuation 195

George Dell

FEBRUARY 28, 2024

“I never make adjustments,” said the MAI who first trained me. He was a top litigation appraiser. He explained that if he made an adjustment he had no way to explain how he got the number when cross-examined by the opposing attorney. Instead, he used what is called ‘qualitative analysis.’ The Appraisal of Real Estate […] The post Are Adjustments Necessary?

Training 195

Training Real Estate Appraisal Valuation 195

George Dell

FEBRUARY 21, 2024

The word “modernization” has a meaning different from what I thought. It seems to depend on who is using the word. To me, it just meant “get with it!” To our GSEs (Fannie Mae and Freddie Mac), it means something special. The dictionary definitions and explanations focus on the social and even political aspects of […] The post What is Appraisal Modernization?

Modernization 195

Modernization Appraisal 195

George Dell

FEBRUARY 14, 2024

“Market” – A word poorly understood, and often misused. A gathering or place for buying and selling things. It can be physical, or virtual, and involves at least one third party for competition. Perfect competition is when you have many buyers and sellers. A real property market is seldom or never perfect. A “market” for […] The post What is The Market?

Marketing 195

Marketing Real Property Sellers Buyers 195

George Dell

FEBRUARY 7, 2024

MPI© (Market Price Indexing) is a holistic approach to market analysis and “time adjustments.” Here we look at the process, the theory, the judgment, and the benefits of this model. MPI – The process involves simple mechanics: Download the relevant competitive market data. Create a scatterplot with sale prices over time. Clean the data of […] The post Why MPI(c)?

Marketing 195

Marketing 195

George Dell

JANUARY 31, 2024

Appraiser judgment is required. Analysis is reduction and logic. Analysis comprises reasoning and reducing the problem into well-mannered parts. Logic can be mathematical/absolute, or it may involve uncertainty/probabilistic reality. Reduction is the act of separating a larger problem into manageable parts. Judgment, in (traditional-legacy) appraisal, is emphasized in picking comps (data selection).

Appraisal 195

Appraisal 195

George Dell

JANUARY 24, 2024

Time adjustments are not required. Unless they are needed. Appraisal time adjustments are also labeled as “market conditions” adjustments. Or, more recently in Evidence Based Valuation, “Market Price Indexing (MPI)©”. The FHFA blog post of 1/16/2024 defines “underappraisals” as those loan appraisals which come in below the contract price. The rising market […] The post No Time Adjustments!?

Contracts 338

Contracts Valuation Appraisal Marketing 338

George Dell

JANUARY 17, 2024

“USPAP” is for credible appraisers. The underlying principle of the actual ‘standards’ and the hundreds of pages of “explanatory” material is that the appraiser’s work must be “worthy of belief.” Accuracy and precision (trueness and sureness) are never stated as a goal. Believability, in turn, is judged by the user “expectations” and if “peers” would […] The post Are Standards Credible?

Appraisal 195

Appraisal 195

George Dell

JANUARY 10, 2024

Is thinking necessary? Are there different types of thinking? Can I avoid thinking about this? As the appraisal profession transitions to data analysis methods – we discover that judgment becomes more important – not less important. In fact, it does require we think about thinking! Let’s go! We can contrast a critical thought process with […] The post Critical Thinking?

Appraisal 195

Appraisal 195

George Dell

JANUARY 3, 2024

An appraisal, everyone knows what is. Or do they? To explore this question, we must consider the theoretical – what USPAP expects. And we must consider what actually happens – in real, practical, practical, practice. In addition, we must consider other “valuations” types. We also might glance at what might be an ideal – given […] The post What IS an Appraisal?

Appraisal 195

Appraisal Valuation 195

George Dell

DECEMBER 27, 2023

Resolved: I am going to do better this year. Done! Each new year, most of us give some thought to how the next year might be better or different from last year. We set some intentions. We call these “Resolutions.” Or not. What’s wrong with this pledge to self? Lets look. You have to ask […] The post Resolved Resolutions? appeared first on George Dell, SRA, MAI, ASA, CRE.

Technology 195

Technology 195

George Dell

DECEMBER 20, 2023

More appraisal censorship is here! Have you noticed this new regulation that censors California appraisers and flat out appears to prohibit accepted sound appraisal methodology and practice? Editor’s Note: A Guest Post from Bruce Hahn, CCIM, MAI, SRA Consider California Business & Professions Code Section 11424(a) which says: Licensees shall not base, either partially or […] The post More Appraiser Censorship??

Appraisal 221

Appraisal Business 221

George Dell

DECEMBER 13, 2023

The education question — what is more important? The content of appraiser training, or how it is delivered? Appraiser education “marketability” is similar to appraisal marketing itself. Buyers of appraisals and buyers of appraisal education judge by three things: Cheap; Fast; Good. “Pick any two” says David Towne in his graphic. Anyone can provide classes. […] The post Education: Delivery or Content?

Training 195

Training Appraisal Buyers Marketing 195

George Dell

DECEMBER 6, 2023

The developers of EBV (Evidence Based Valuation©) have concluded that best practices are dependent on the needs of the client for reliability and useability of the results. The need of the client is the predicted value (estimate). The goal of a valuation is trueness (accuracy) of the prediction or opinion. The test of any valuation is […] The post EBV Best Practices?

Valuation 195

Valuation Clients Development 195

George Dell

NOVEMBER 29, 2023

The valuation “process” (algorithm and model) is universal. What does this mean? It means that it doesn’t matter who does it, who makes decisions, or who ‘inspects’ the property. The science is the same: Systematic study through observation and experiment. So we seek and define the systematic study. In (opinion) appraisal, it’s called the appraisal […] The post Universal Valuation Standards?

Valuation 195

Valuation Inspection Appraisal 195

George Dell

NOVEMBER 20, 2023

Editor’s Note: This original Gratitude post written by George Dell appeared in The Analogue Blog on November 21, 2018. A lot has transpired in five years. (The understatement of the Century!) But our gratitude is stronger than ever after all these years. Editor’s Note: Check out the later post from November 26th, 2019 here: Does […] The post Gratitude: a Redux appeared first on George Dell, SRA, MAI, ASA, CRE.

364

364

George Dell

NOVEMBER 15, 2023

EBV© (Evidence Based Valuation) is the future of professional appraisal. EBV is the best response (and advantage) to the dramatic changes in residential appraisal practice. Change in the nature of commercial/industrial valuation will follow, as it usually does. Editor’s Note: This is Standards, part 3.18 of George Dell’s series on How Do I Move to […] The post EBV© Now or Later?

Valuation 195

Valuation Appraisal 195

George Dell

NOVEMBER 8, 2023

Market value or comparable value? What does that mean? It means we form market value opinions. Specifically, credible market value opinions. Credible in this case must mean more than merely “…worthy of belief…” since USPAP contains no indication of who’s belief we seek. It means, therefore, worthy of the market’s belief since the market is […] The post Market Value Or Comparable Value?

Market Value 195

Market Value Marketing 195

George Dell

NOVEMBER 1, 2023

Biased Appraisals: A Cause or Symptom? In biology, there is a distinction between “proximate cause” and “ultimate cause.” In appraisology, the proximate (immediate) cause of valuation bias is the appraiser’s opinion. – For example, the appraiser reporting a “too high” number shows the ‘impact’ proximate bias. The ultimate (underlying) cause of this bias might be […] The post Biased Regulation?

Valuation 195

Valuation Appraisal 195

George Dell

OCTOBER 25, 2023

We’re gonna crash! Now What? An appraiser’s job is to reflect the market. A couple of questions: What is “the” market? And how do I reflect? I like to divide consumer behavior into two thought patterns: Micro and Macro thinking. Micro thinking is under the assumption that the buyer is buying for personal use – […] The post Market Crash Adjustment?

Marketing 195

Marketing Buyers Market Value Appraisal 195

George Dell

OCTOBER 18, 2023

Appraisal modernization has been touted in different ways. It depends on the touter. “Modernization” is a good word for marketing. But what is “modernization” selling? Is it selling modern technology? The partitioning of appraisal workflow (initiator, AMC manager-selector, data collector-researcher, inspector, analyst, reporter, reviewer, decisioner)?

Modernization 150

Modernization Technology Appraisal Marketing 150

George Dell

OCTOBER 11, 2023

A dictionary definition of “adjust” is: “alter or move (something) slightly in order to achieve the desired fit, appearance, or result.” When I “carefully” pick some comps, I use my judgment to need as little fudging as possible. But it never seems to work out just right. There are three practices to adjust the fudging: […] The post Just Adjust Pt 2 appeared first on George Dell, SRA, MAI, ASA, CRE.

Appraisal 195

Appraisal 195

George Dell

OCTOBER 4, 2023

EBV (Evidence Based Valuation) principles continue to update from legacy “appraisal” practices. Here we hope to have a quick look at the upsides and downsides of EBV, compared to traditional, judgment-based “methods and techniques.” Editor’s Note: This is Standards, part 3.16 of George Dell’s series on How Do I Move to EBV? Links to the […] The post EBV Pro or Con?

Valuation 195

Valuation Appraisal 195

George Dell

SEPTEMBER 27, 2023

We’ve seen the standard which requires an appraiser to use ‘correct’ methods (whatever those may be). And which also requires the appraiser to use ‘sufficient’ care (whatever that is). All part of the legacy USPAP Uniform Standards of Professional Appraisal Practice. Be correct and be careful! Editor’s Note: This is Standards, part 3.15 of George […] The post Correct Methods or Sufficient Care?

Appraisal 195

Appraisal Valuation 195

George Dell

SEPTEMBER 21, 2023

Quasi-government “Congressionally-authorized” appraisal standards require “correct” research and analyses. What does that mean? What is correct? And who decides? It’s in Standard 1. Be correct. Editor’s Note: This is Standards, part 3.14 of George Dell’s series on How Do I Move to EBV? Links to the earlier posts are here. Does this say – it’s […] The post A Correct Appraisal?

Appraisal 195

Appraisal Government 195

George Dell

SEPTEMBER 15, 2023

Assume what condition your assumption is in! Editor’s Note: This is Standards, part 3.13 of George Dell’s series on How Do I Move to EBV? Links to the earlier posts are here. Assumptions are a critical part of all analyses or reasoning logic. Assumptions about assumptions are interesting. Two starting points are assumed: 1) the […] The post Assumed Assumption Addiction?

195

195

George Dell

SEPTEMBER 6, 2023

Scope of Work is what you plan to do. It requires you to identify the problem and identify the work necessary. The goal of USPAP (Uniform Standards of Professional Appraisal Practice) is credibility. The appraiser should be “worthy of belief.” A measure of reliability or usefulness of the appraisal is not required. Editor’s Note: This […] The post EBV: A New Scope of Work?

Appraisal 195

Appraisal 195

George Dell

AUGUST 30, 2023

You MUST make adjustments. Everybody knows that! Or not. In USPAP and The Appraisal of Real Estate (TARE) we have two predominant topical sources. The USPAP standards do not require adjustments. The word “comparable” is not defined, nor is the word “adjustment” found in USPAP. Nothing about adjustments nor picking comps. However, we note that […] The post Imaginary Adjustments?

Real Estate 195

Real Estate Appraisal 195

George Dell

AUGUST 23, 2023

Scope of Work is required in legacy appraisal practice. Data Science (and Evidence Based Valuation) are more based on principles of good science. Editor’s Note: This is Standards, part 3.11 of George Dell’s series on How Do I Move to EBV? Links to the earlier posts are here. To sum up, the goal of traditional […] The post Scope or Hypothesis?

Valuation 195

Valuation Appraisal 195

George Dell

AUGUST 16, 2023

Analyst Appraisers are replacing “Opinion” Appraisers! (Trust me … ) Why? How? Huh? In the late 1900’s, appraisers were handicapped! Typewriter. Telephone. Assessor data. Quarterly MLS comp books, No compiled commercial data at all! Collecting comp data was 80% of the battle. Get four or five and you were “almost done.” Make some adjustments from […] The post The Analyst Appraiser?

Appraisal 150

Appraisal 150

George Dell

AUGUST 9, 2023

How do you measure “close enough” to a market value? We have standards you know! Editor’s Note: This is Standards, part 3.10 of George Dell’s series on How Do I Move to EBV? Links to the earlier posts are here. Valuation is numbers. Some numbers are numbers, like building SqFt. Other numbers are exact like […] The post How Close is Close Enough?

Market Value 195

Market Value Valuation Marketing Appraisal 195

George Dell

AUGUST 2, 2023

The USPAP “Competency Rule” is straightforward. It says you must be competent! For any given assignment, “being competent” requires the appraiser to: “properly” identify the problem; have knowledge and experience to be competent; recognize and comply with applicable laws and regulations. Editor’s Note: This is Standards, part 3.9 of George Dell’s series on How Do […] The post “The” Competency Rule v Today’s Best Practices?

Law 195

Law Appraisal Valuation 195

George Dell

JULY 26, 2023

Is USPAP biased? (Appraisal Foundation, Uniform Standards of Professional Appraisal Practice) Is this possible? It can’t be! This part 8 of a multipart look at issues in valuation standards. Editor’s Note: This is Standards, part 3.8 of George Dell’s series on How Do I Move to EBV? Links to the earlier posts are here. Let’s […] The post Does USPAP Enable Bias?

Valuation 195

Valuation Appraisal 195

George Dell

JULY 19, 2023

Change. It’s clear that appraisal, as a vocation, has changed. Many appraisers are considering new careers. Others are preparing to meet new demands. Yet others are doing. nothing. Which mind are you? Escape. Retool. Or be in denial. I have taught with Valuemetrics.info for over 17 years now. And was on the […] The post Change Careers or Change Your Practice?

Appraisal 369

Appraisal 369

George Dell

JULY 12, 2023

Workfile is required, (or not?). This part 7 of a multipart look at issues in valuation standards. Editor’s Note: This is Standards, part 3.7 of George Dell’s series on How Do I Move to EBV? Links to the earlier posts are here. USPAP WORKFILE The “workfile” concept works well as an effort at documenting an […] The post Workfile or Integration?

Valuation 195

Valuation Appraisal 195

George Dell

JULY 5, 2023

What!? Universal Valuation Standards? Not possible! This part 6 of a multipart look at issues in valuation standards. Editor’s Note: This is Standards, part 3.6 of George Dell’s series on How Do I Move to EBV? Links to the earlier posts are here. The ‘possibility’ premise, however, is that all valuations follow the same logic […] The post Move to Universal Standards?

Valuation 150

Valuation 150

George Dell

JUNE 28, 2023

We continue our look at how current standards, and regulations hold back best practices. This part 5 of a multipart look at issues in valuation standards. Editor’s Note: This is Standards, part 3.5 of George Dell’s series on How Do I Move to EBV? Links to the earlier posts are here. This part is interesting […] The post Standards: Groupthink Bias?

Valuation 195

Valuation 195