Fourth Approach to Value

In Joan N. Trice, SRA's recent newsletter, she tells of her early training as an appraiser. She said, " My mentor, John Nicodemus, MAI, taught me the fourth approach to value—the curb approach. When all else fails sit on the curb and ask what would you pay for it. " There are some rumblings that AVMs are the fourth approach to value. "Automated Valuation Models, at present, were designed for lender use. They aren’t interactive in any way with appraisers or appraisal data." "I would love to see appraisers empowered with some really cool, easy to use, analytic tools using their own data to supplement national databases" said Joan. "Wouldn’t it be amazing to be able to prove a two car garage adjustment in a given zip code? How about nifty charts and graphs showing the appreciation rate in your subject neighborhood. Think about how you could dazzle the underwriters. How about inventory? If you aren’t analyzing that then shame on you. Imagine the tools that would make you a better appraiser." I agree with Joan's comments above. I also think that appraisal organizations and appraisal software vendors have ignored the needs of their members and customers as it relates to providing the necessary training and tools. They seem willing to work hard with "commercial" AVM providers but not the thousands and thousands of fee appraisers that need more advanced analysis tools. Watch the avm360 bulletin board for news about the launch a new avm360 newsletter. Vicky Cassens Zillioux will be the editor. You will be able to subscribe and unsubscribe from it separately. I'll post some additional thoughts of my own in a separate post.