Reengineering the appraisal: a return to fundamentals
A Presentation for the Collateral Risk Network Meeting

David Valdez/US Department of Housing and Urban Development

Article Highlights

  • The US is the world leader in distortionary housing policy interventions

    Tweet This

  • Relationship between market value based on comparable sales analysis and rental income should always be taken into account

    Tweet This

  • Return property appraising to its core function--assisting lenders in determining the max amount they may be lent on a property

    Tweet This

Reengineering the Appraisal: A Return to Fundamentals

Download PDF

  • The relationship between market value based on comparable sales analysis and rental income should always be taken into account.  
  • In order to not start with the answer (sales price) this requires reporting a sales price range.
  • The comparable selection process must be transparent to the users.  
  • This process could be improved by identifying all appropriate comparables and using statistical techniques to help the appraiser select and reconcile all appropriate comparables. 
  • A collateral experat at the ledner should determine loan terms based on a review and analysis of market and stabilized values.
  • Only by taking steps such as these can property appraising return to its status as a profession and to its core function: assisting lenders in determining the maximum amount that may be prudently lent on a property. 
Edward Pinto is a resident fellow at AEI
Also Visit
AEIdeas Blog The American Magazine
About the Author

 

Edward J.
Pinto

What's new on AEI

Holder will regret his refusal to obey the Constitution
image 'Flood Wall Street' climate protesters take aim at their corporate allies
image 3 opportunities for better US-India defense ties
image Is Nicolás Maduro Latin America's new man at the United Nations?
AEI on Facebook
Events Calendar
  • 29
    MON
  • 30
    TUE
  • 01
    WED
  • 02
    THU
  • 03
    FRI
Thursday, October 02, 2014 | 9:00 a.m. – 10:30 a.m.
Campbell Brown talks teacher tenure

We welcome you to join us as Brown shares her perspective on the role of the courts in seeking educational justice and advocating for continued reform.

Event Registration is Closed
Friday, October 03, 2014 | 12:00 p.m. – 1:00 p.m.
Harnessing the power of markets to tackle global poverty: A conversation with Jacqueline Novogratz

AEI welcomes you to this Philanthropic Freedom Project event, in which Novogratz will describe her work investing in early-stage enterprises, what she has learned at the helm of Acumen, and the role entrepreneurship can play in the fight against global poverty.

No events scheduled this day.
No events scheduled this day.
No events scheduled this day.
No events scheduled this day.
No events scheduled this day.
No events scheduled this day.