Evening star. [volume] (Washington, D.C.) 1854-1972, 1934-07-21
APPRAISAL WORK
TOLDBY kN|SkERN
Home Owners Loan Board
Problem Discussed al
Ohio Meeting.
Philip W. Knisksrn, author Of a

Philip w. KniSkern, author Of a
standard text book on real estate ap-
praisal and valuation and appraisal
adviser to the board of the Home
Owners Loan Corporation. at q re-
cent meeting OF the Ohio Chapter of
the American Institute OF Real Estate
Appraisers. outlined the manner in
which the Home Owners Loan Cor
porstion is supervising the appraisal
work in its operations
In explaining the tremendous size
OF the problem that confronts the
board in this one department of its
activities alone, Mr. Kniskern empha-
sized that the corporation employs
more than $500 men in appraisal
work. some on salary but the great
majority being paid on a fee basis
Some 100000 home properties have
been appraised. The total applica-
lions involve over 400 900 properties
With this volume OF work 1t has been
physically impossible to concentrate
final approval in Washington. Each
State organization has been made
complete functioning unit A super
vising organization has been created
to work out OF Washington.
The problem is intensified" ex-
planned Mr.. Kniskern, by the fact
that appraising cannot be done by
formula nor by rule. Each valuation
must reflect an individual Judgment.
The Appraisal Division in Washington
is organized upon this fact"
Two Primary Interests
Mr.. Kniskern, in outlining the
broad viewpoint OF the officials Of the
Home Owners Loan Corporation in
Washington toward the APPRAISAL ques-
ton. stated that there were two pri-
mary interests-frst, to protect the
Government as the sole stakeholder
in the corporation and, second, to
give the full fair value to the proper
ties in order that both mortgagor and
mortgage would receive fair treat
ment. He pointed out also that the
valuations made by representatives OF
the Home owners Loan Corporation
would have very marked effect upon
the real estate market in homes for
some years to come and that the off,
Gals recognized this important further
responsibility to the general public for
fair appraisals. Consideration of
these three questions is always kept
before the minds OF the appraisal
personnel.
The standard procedure is to have
q preliminary appraisal which gives
an approximation of the value Of the
property as well as the eligibility and
desirability of the loan. Later a fee
appraisal is made by an independent
local appraiser. Finally a review is
made of both appraisals and any
other data in the file by which the
formal corporation value is estab-
lished, by men particularly selected
for that purpose. This Is all done
within the State organization and by
men responsible to the State man.
ager
The Appraisal Division in Washing
ton consists of the appraisal adviser
to the board, a senior assistant and
five others, each of the latter super
vising an area consisting of several
States. There are some 25 other men,
known rs regional appraisers, each
assigned to a single State or group
of States, with from one to four as
sistants, who are seldom assigned
primarily to their own home State.
These regional men are constantly
and Systematically spot checking the
local personnel, values and other APP
praisal results.
The work Of these regional and
State men is supplemented by group
of State appraisal advisers. selected
because of their experience and, in
every case, outstanding citizens in
their own community whose judg-
ment receives ready and general ac-
ceptance These advisers consider
appraisal results, appraisal personnel
and general procedure as carried out
by the Home Owners Loan Corpora
ton in their community, making
such comments and suggestions TO
the appraisal adviser to the board
and the State manager as seem to
them appropriate"
In closing, Mr. KniSkern pointed
out the advantages in this system as
he saw them, namely, Through the
State organization We have a group
especially trained for the particular
work. The regional appraisers bring
an outside perspective resulting from
their broader field of work. The ad-
visers give the benefit of a mature
independent opinion. BY such a sys-
tenn the corporation believes it is ac-
complishing sound and correct ap-
praisal results"