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| The Effect of Expertise on the Quality of
Appraisal Services Author: Mark T. Spenc and James A. Thorson Start Page: 205 Abstract: This article examines the quality of appraisals as a function of
expertise. In paraticular, we compare novices (beginning real estate students) to experts
(practicing certified and/or designated appraisers) on three performance criteria. First,
we examine differences in the values that these two groups attach to various property
features. Second, we investigate the variation between their final market value estimates.
The last task studied is whether appraisers can reliably provide a range about their
market value that includes the actual sale price of the property. The results are based on
a controlled experiment involving seventy-two novices and sixty-nine experts, where each
participant was asked to determine a fair market value of a single-family home. Findings
indicate that experienced appraisers do in fact exhibit less variation in their valuation
of property characteristics, hence there is greater agreement in their market value
estimates than is the case with novices. However, more experienced decision-makers tend to
be overconfident of their ability: they are less likely to specify a range that includes
the sale price than are novices. |
