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Answers (5)
- Jeff Josephsen, "Jeff Josephsen"
- Contributions:7
The answer is "Competive Valuations" - stay tuned.
Jeff
- sunnyview
- Contributions:25046
That thread link is wow Pasa! I bookmarked it tonight, but I want to read it in daylight to fully digest all the information.
By the way, did you see the recent thread on
Research on Zestimates, part 2... ??
Especially the histogram?
Zillow tries very hard to be non-biased, but it is hard with limited data and people that have been given other numbers and issues of "vested interest".
Still, I don't understand why so many come and complain that Zillow intentionally valued their specific property low for Zillow's benefit... it makes no sense of any kind, and certainly would not be a good model for a media company.
Research on Zestimates, part 2... ??
Especially the histogram?
Zillow tries very hard to be non-biased, but it is hard with limited data and people that have been given other numbers and issues of "vested interest".
Still, I don't understand why so many come and complain that Zillow intentionally valued their specific property low for Zillow's benefit... it makes no sense of any kind, and certainly would not be a good model for a media company.
- sunnyview
- Contributions:25046
Terrific article Vince! So may people do not understand how much pressure appraisers are under and how they are viewed by the lending industry.
Appraisers have often been asked to do things that are simply not supported by the numbers available. I think they should be a neutral party, but in practice it has not worked that way. I think many appraisals would be different if they were for a divorce or an estate than a purchase or a refi--same house, same comps, different numbers.
Appraisers have often been asked to do things that are simply not supported by the numbers available. I think they should be a neutral party, but in practice it has not worked that way. I think many appraisals would be different if they were for a divorce or an estate than a purchase or a refi--same house, same comps, different numbers.
Great read!
It is amazing how neutrality can benefit both parties in a court room!
Neutrality seems to be one of the goals of CoreLogic's AVM patent
U.S. Patent # 5,361,201
"In order to reduce bias and provide more accurate appraisals, statistical techniques may be used to obtain an independent, consistent, mathematically derived estimate of a property's value to assist an appraiser in generating an appraised value."
Still, in a Capitalist Economy, it is expected that a seller should be able to get whatever they can sell something for, and it is impossible to completely track mirco-market changes.
So, perhaps the author was "right" to get out of the mortgage market appraisal industry and concentrate on those that need non-biased numbers... but at some point, we still need to ask the question of what really determines the market, and does marketing propaganda have any place in such activities, or should the whole listing, offer, and negotiation be "scrapped" and just have predetermined values?
Is capitalism beneficial in determining true market levels and balancing supply and demand needs, or is capitalism just getting in the way?
I don't think that any U.S. citizen is ready for predetermined prices yet, and I'm certain that U.S. business are not. But people don't like uncertainty either, nor wildly fluctuating prices, nor rapid inflation, nor rapid deflation.
It is amazing how neutrality can benefit both parties in a court room!
Neutrality seems to be one of the goals of CoreLogic's AVM patent
U.S. Patent # 5,361,201
"In order to reduce bias and provide more accurate appraisals, statistical techniques may be used to obtain an independent, consistent, mathematically derived estimate of a property's value to assist an appraiser in generating an appraised value."
Still, in a Capitalist Economy, it is expected that a seller should be able to get whatever they can sell something for, and it is impossible to completely track mirco-market changes.
So, perhaps the author was "right" to get out of the mortgage market appraisal industry and concentrate on those that need non-biased numbers... but at some point, we still need to ask the question of what really determines the market, and does marketing propaganda have any place in such activities, or should the whole listing, offer, and negotiation be "scrapped" and just have predetermined values?
Is capitalism beneficial in determining true market levels and balancing supply and demand needs, or is capitalism just getting in the way?
I don't think that any U.S. citizen is ready for predetermined prices yet, and I'm certain that U.S. business are not. But people don't like uncertainty either, nor wildly fluctuating prices, nor rapid inflation, nor rapid deflation.
'Neutral Valuation' - fact or fiction
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Contributions:4680Great read here for those so inclined to understand the state of appraising today...
Here's a quote:
"As a real estate appraiser for the past 25 years, I've always viewed my role as a provider of a neutral valuation benchmark for clients to become empowered to make more informed decisions. Of course this is a fantasy-based, in-a-perfect-world depiction rather than an actual practice. In mortgage lending, residential real estate appraisers are not able to provide an independent market value without some sort of reprisal if the results do not match the client's needs."
"Since the credit crunch began with the Lehman Brothers bankruptcy that roiled the world economy in September 2008, our profession has actually strayed farther from being any sort of neutral valuation benchmark."
Well worth reading the article and the comments!!
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