Blogging

I would like to open a topic for discussion. Recently courses and articles have been provided that give appraisers newly found ways of developing more detail, more support, or at least more discussion of how conclusions are made.

Statements with respect to the market characteristics/trends, support for adjustments, utilizing or not utilizing three approaches to value and etc, it would seem to me that there can be a vast difference between what one appraiser does to support his or her conclusions and what another does.

If an appraiser chooses to extend their scope, beyond what is typical accepted by their peers, is the reliability of the conclusions higher.

For example lets say we have three appraisers appraising the same property for three different intended uses.

One appraiser does a drive by appraisal simple sales approach,

The second another appraiser does a full URAR maybe two approaches to value and some current listings.

A third appraiser provides a large narrative analysis with three approaches to value in conjunction with AVM, graphs and demographics.

Then although each appraiser provided an indication of value but the depth of the analysis or scope of the report was different. Then from a practical stand point is there not a higher reliability factor associated with the larger more detailed report than the more simple analysis?

Is there such a thing as reliability factor? How would it be determined?

Then again what about areas it which data is plentiful as oppose to areas in which data is limited, is there not a reliability factor?

Some where I recall the phrase ‘range of error” that was used by appraisers in the past. …. I am talking way back!

Assume for a minute that one type of client wants more assurance as to the value and statements indicated in a report then another client, again considering their intended use.

Could we provide more detail, provide more substance and provide more support for our conclusions in one report than let’s say another report. An example would be you have an appraisal being done for divorce purposes and another one for estate purposes. Should we have to different scope of work addendums or statements?