Author: George H. Lentz and Ko Wang

Start Page: 11
End Page: 40
Volume: 15
Issue Number: 1
Year: 1998
Publication: Journal of Real Estate Research

Abstract: This article surveys mainly academic literature for issues concerning the use of appraisals in the residential lending process. The development of appraisal methodologies is reviewed, and the strengths and weaknesses of various appraisal techniques are assessed. Issues relating to the use of neighborhood characteristics in appraisals for lending purposes are also explored. Finally, institutional incentives that give rise to biased and self-serving appraisals and possible solutions to these incentive problems are examined.