Key Takeaways
- Appraisal inflation was systemic during the 2003-2007 bubble; 90% of appraisers reported pressure.
- HVCC and Dodd-Frank reforms improved appraiser independence but introduced AMC-related concerns.
- AVMs have 2-8% median errors depending on market conditions and property type.
- Perform independent analysis first; use appraisals and AVMs as checks, not primary sources.
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Test Your Knowledge
1.For Appraisal Bias and Market Manipulation, which valuation approach is typically given the most weight?
2.How should investors handle conflicting results from different valuation approaches?
3.What role does market knowledge play in property valuation accuracy?