Reengineering the Appraisal: A Return to Fundamentals

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• The relationship between market value based on comparable sales analysis and rental income should always be taken into account.  
• In order to not start with the answer (sales price) this requires reporting a sales price range.
• The comparable selection process must be transparent to the users.  
• This process could be improved by identifying all appropriate comparables and using statistical techniques to help the appraiser select and reconcile all appropriate comparables. 
• A collateral experat at the ledner should determine loan terms based on a review and analysis of market and stabilized values.
• Only by taking steps such as these can property appraising return to its status as a profession and to its core function: assisting lenders in determining the maximum amount that may be prudently lent on a property.