: Body of Knowledge Issues. AI/MAI/Appraisal Institute/Foundation, 19th Century Thinking

Body of Knowledge Issues. AI/MAI/Appraisal Institute/Foundation, 19th Century ThinkingBy Don Epley, MAI Director

Center for Real Estate Studies University of South Alabama

AbstractThe two current bodies-of-knowledge used by appraiser candidates to qualify for a designation and to practice the profession contain topics in need of discussion and revision to estimate property value accurately. This paper identifies the most pressing topics and makes recommendations to improve the appraiser’s understanding and practice of the profession.The entire article is available in PDF format: Body of Knowledge Issues. http://www.appraiserresearch.org/fileadmin/user_upload/body-of-knowledge-issues/Abstract_20111010143708.pdf You will have to read this nonsense for yourself. For some reason I could not cut and paste which would make it easier for me to address each of my concerns. Basically it is the most ridiculous paper I have read in the past 30, no 40 years. It starts out with the rationalization that the mai, appraisal institute members did not use statically analysis because the data was not available. Now I have been in the industry since the 70's and know full well that this data was available. They then, as they do know, lacked the expertise to use it statistical inference effectively. They have always maintained that appraisal was an "ART," this postulate makes it impossible to attempt a scientific approach to real estate valuations. In fact it would be more appropriate to use statistics to valuing Goya vs. Rembrandt. He blasts the National Association of Realtors, the Federal House Finance Agency, and the Chase-Shilling indices, but cannot produce a better one available from his postulate, the appraisal institute/foundation. He talks about real estate statistics as if it were the production of ball Barings, where you produce a million, and accept or reject, the product line with a sample of ten thousand. The first year statistics student knows that stastical analysis does not produce reliable results with small population. Ah!. . . READ IT THEN WE CAN DISCUSS IT FURTHER. Thanks!
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