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Preview, Foreshadow, Predict. In the context of a real estate appraisal, what do these mean? Some time ago, I did a podcast on writing the appraisal backwards. I never meant this to confuse anybody with this. What I meant was to impart wisdom. It is wise not to open the reporting form on your computer the instant the appraisal order arrives. Rather, once it arrives, do the appraisal first. In other words, come up with a credible value opinion first, then write the report.
Why? Because when you know the end from the beginning, you can preview, foreshadow, and predict. Why are these important? Simple! When we enter information on page one of the reporting form, we are predicting what’s on page two. With a quizzical look on your face, you are now asking, “WHAT?!” And frankly, that is the question you should ask when presented with that statement.
For example, we preview, foreshadow, and predict when, in One-Unit Housing Trends, we indicate the subject’s market is stable. How is that predicting anything? By marking stable you foreshadow that, in the sales comparison approach grid, there will be no adjustments for changes in value over time. This give your client a little peek into the future.
It also foreshadows that among your comps may be one or two “old” sales. You have previewed that such sales are OK since there is no particular change in the market from, say, times past until the effective date of the appraisal. So, up front, you are preparing the client not to see a time adjustment. And you know this trend to be both true and correct since you have all the data to support in the workfile if anybody wants to see it. And that demonstrates to the client we are competent, don’t you think?