About this episode

Timothy C. Andersen explores the assumptions behind the income approach in real estate appraisal and the evidence supporting them.

How Do You Know? — Evidence, Judgment, and the Income Approach How do appraisers know what they claim to know? That simple question lies at the heart of professional real estate appraisal, yet it is rarely asked. In this episode of The Appraiser’s Advocate , Timothy C. Andersen, MAI, explores one of the profession’s most common assumptions: that the income approach is generally not applicable to owner-occupied single-family residences . Rather than arguing for or against the income approach, this discussion asks a deeper question: What market evidence supports that conclusion? Is the decision based on market analysis , market participant behavior , and USPAP-compliant appraisal methodology? Or has it simply become accepted through tradition? This podcast draws from USPAP , The Appraisal of Real Estate , housing economics , behavioral economics , and the philosophy of Socrates. It also examines how appraisers develop credible opinions of value through professional judgment , critical thinking , and evidence-based appraisal . Along the way, it introduces concepts such as judgment under uncertainty , market-supported conclusions , highest and best use , reconciliation…

People in this episode

Host: Timothy C. Andersen

Topics covered

• real estate appraisal
• income approach
• market analysis
• professional judgment
• evidence-based appraisal
• critical thinking

Keywords

• appraisal
• income approach
• market evidence
• USPAP
• real estate
• professional judgment
• critical thinking

Mentioned in this episode

Organizations: USPAP

Books & works: The Appraisal of Real Estate

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