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.

What's new on AEI

Defeating ISIS: AEI experts weigh-in before the president’s address on Wednesday
image Degrading, defeating, and destroying the Islamic State
image Wealth Building Home Loan: Building wealth through homeownership and retirement savings
image The $3 iPhone
AEI on Facebook
Events Calendar
  • 15
  • 16
  • 17
  • 18
  • 19
Tuesday, September 16, 2014 | 5:00 p.m. – 6:00 p.m.
The Constitution as political theory

Please join us for the third-annual Walter Berns Constitution Day Lecture as James Ceasar, Harry F. Byrd Professor of Politics at the University of Virginia, explores some of the Constitution’s most significant contributions to political theory, focusing on themes that have been largely unexamined in current scholarship.

Wednesday, September 17, 2014 | 8:10 a.m. – Thursday, September 18, 2014 | 1:30 p.m.
Third international conference on housing risk: New risk measures and their applications

We invite you to join us for this year’s international conference on housing risk — cosponsored by the Collateral Risk Network and AEI International Center on Housing Risk — which will focus on new mortgage and collateral risk measures and their applications.

Event Registration is Closed
Thursday, September 18, 2014 | 2:15 p.m. – 3:00 p.m.
Speaker of the House John Boehner on resetting America’s economic foundation

Please join us as Speaker John Boehner (R-OH) delivers his five-point policy vision to reset America’s economy.

Event Registration is Closed
Friday, September 19, 2014 | 9:15 a.m. – 11:00 a.m.
Reforming Medicare: What does the public think?

Please join us as a panel of distinguished experts explore the implications of the report and the consumer role in shaping the future of Medicare.

Event Registration is Closed
No events scheduled this day.
No events scheduled this day.
No events scheduled this day.
No events scheduled this day.