President’s message: Appraisers develop opinions - by Ken Dicks

Ken Dicks, Appraisal Institute

Over the past years I have had the good fortune of traveling with an adventurous family, marveling at some of the wonders in the beautiful lands of Ireland and England. These marvels, whether created by nature or man-made present puzzles.  Consider the following puzzle: How possibly could the stone fort structures in Ireland and England, on the European continent , and on the continent of South America, have the same architectural style and implementation of engineering concepts to ensure structural integrity to last thousands of years ?  These structures were created with extreme limitations on communication and transportation, just how was that knowledge developed and distributed? Many theories are out there, theories based on opinions, developed by experts, archeological and hobbyists. The most plausible theories accepted are those by educated, experienced experts in the field, including academics and experienced archeologist who roll up their sleeves and are willing to excavate.

Real estate appraisers develop opinions, and Appraisal Standards require those opinions to be credible.  On the subject of opinions, I have stumbled across a fascinating book in my Kindle library entitled “The Miniature Guide to the Art of Asking Essential Questions” by Richard Paul and Linda Elder, published by the Foundation for Critical Thinking. To me, this book speaks to the essence of real estate appraisal, as it guides the reader through the concepts and applications of critical thinking and problem solving.  The authors discuss the requirement of being intellectually responsible, that is, neither being a dogmatic absolutionist or a subjective relativist. Solving appraisal problems requires judgment – that is, development of reasoning and evidence in support of a view, and often requires the consideration of alternative points of view.

Listening to an interview last week with long-time PBS education correspondent, John Merrow, a quote stuck with me. “A healthy dose of skepticism is required to gain knowledge”. The lack of skepticism leads to complacency, too much skepticism leads to cynicism. The extremes inhibit the development of knowledge. As in any profession, the key to success and to meeting the challenge is to remain consistently intellectually responsible.  Each appraiser approaches each assignment, and each part of the appraisal process, with this healthy dose of skepticism and is required to maintain a standard of intellectual responsibility.

 To cultivate knowledge, appraisers rely on two sources, opportunities for education advancement and opportunities experiential learning.  The Appraisal Institute educational programs bring forth the world leading body of knowledge. From an experience standpoint, members of the Appraisal Institute show proven experience, experience upholding the Appraisal Institute Standards of Practice.  The Standard of Practice upholds intellectual responsibility in practice, requiring appraisers to be consistent in their approach, and the development of conclusions, and maintaining context and evidence-based conclusions encompassing of all of the known forces to the creation of value.

 Ken Dicks is the 2015 president of the Mass./RI chapter of the Appraisal Institute and director residential real estate appraisal risk at Santander Bank, Dorchester, Mass.