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

Making Ryan's tax plan smarter
image The teacher evaluation confronts the future
image How to reform the US immigration system
image Inversion hysteria
AEI on Facebook
Events Calendar
  • 25
    MON
  • 26
    TUE
  • 27
    WED
  • 28
    THU
  • 29
    FRI
Wednesday, August 27, 2014 | 3:00 p.m. – 4:15 p.m.
Teacher quality 2.0: Toward a new era in education reform

Please join AEI for a conversation among several contributors to the new volume “Teacher Quality 2.0: Toward a New Era in Education Reform” (Harvard Education Press, 2014), edited by Frederick M. Hess and Michael Q. McShane. Panelists will discuss the intersection of teacher-quality policy and innovation, exploring roadblocks and possibilities.

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