My First 50 Years

Steve Papin reflects on 50 years as a residential appraiser.  

 

February 16, 1976. Gasoline was 59 cents per gallon. A loaf of bread cost 35 cents, eggs were 84 cents a dozen, and a new car was around $4,500. The national median family income stood at $14,900, while the median home sale price was around $44,000. Gerald Ford was President of the United States.  1976 saw the USA celebrate its 200th birthday, and the birth of Apple Computer Company and Microsoft.  

And I was beginning my career—hired to train as a real estate appraiser.

Fifty years is a long time. As I enter this chapter of my professional life, I find myself reflecting on the journey. What wisdom have I gained? What wisdom have I contributed? What lessons from my mentor were accurate and enduring? What moments truly shaped the trajectory of my career?

One thing is clear: longevity is not uncommon in the appraisal profession. Even after five decades, I am rarely the most seasoned appraiser in the room at the conferences I attend.

How I Entered the Appraisal Profession

As a high school graduate without a clear direction, I chose to pursue real estate with the intention of earning my sales license. Before I attended my first class, a member of my personal network—more simply, a friend of my mother—mentioned me to a prospective employer. She thought I was a good kid with an interest in real estate, and that was enough to open a door.

When I arrived for the interview, I didn’t know what an appraiser did.

I had no background in the field and no family connections to the profession—just an opportunity to learn and grow. It wasn’t until two years into the job that I developed a genuine interest in what I was doing.

In 1976, a major part of my role involved visiting courthouses to gather data from tax cards. Reviewing tax records for home sales near a subject property was a key method for identifying comparable sales. It was a hands-on, detail-oriented process that laid the foundation for the analytical skills I would continue to build over the decades.

Wisdom of My Mentor

Patrick Charles Berding was a respected leader in the Greater Cincinnati appraisal community—successful, well-regarded, and deeply committed to the profession. His philosophy centered on mentorship. He wasn’t seeking candidates with advanced degrees; instead, he believed in shaping a protégé through hands-on training. At age 19, I was selected to be that protégé.

Pat’s approach to education emphasized the offerings of the Society of Real Estate Appraisers, which was a leading professional organization at the time. Through those channels, I met exceptional individuals and learned from some of the most respected appraisers in our region. College was never part of Pat’s plan for me, and like many of my peers from that era, I entered the profession without a formal degree.

Some of Pat’s wisdom still brings a smile, while other lessons have stood the test of time. A few memorable quotes:

• “We render opinions for a living… It’s not like someone can sue you over an opinion.”
• “The only thing that never goes out of style in residential real estate is quality.”
• “A full bathroom is worth $1,000. A half bath is worth $500.”
• “Always tell the truth as best you know it.”
• “If it takes you more than an hour to figure out what a house is worth, you’re doing something wrong.”

Two of those principles continue to resonate today.

And yes, I had the infamous list of adjustment values—now considered taboo—but it was part of the learning process in that era.

I worked alongside Pat for 23 years. Under his guidance, I earned professional designations and eventually became the lead residential appraiser in our firm. His mentorship shaped not only my career but also my understanding of integrity, quality, and the value of experience.

Memories from the Early Years

My early years in the appraisal profession were filled with learning, exploration, and a fair amount of uncomfortable experiences. At just 19 years old, my appearance at the front door of a homeowner didn’t  inspire confidence. I quickly learned to answer just enough questions to give the impression I knew what I was doing—though, truthfully, I didn’t.

Exploring every part of town—many areas I had never visited—and encountering every type of home was both fascinating and intimidating. I vividly remember appraising a large residence adjacent to an exclusive country club, owned by a prominent executive. The experience was nerve-wracking.

Pat had developed a 14-inch page that served as an early version of an appraisal form. We manually checked a few boxes, and he left a blank space on the front for handwritten comments about the property, which clients considered a cutting-edge touch. A single Polaroid instant photo of the home’s exterior was attached. At the bottom of the page, we simply wrote the value conclusion.

The valuation process itself was straightforward. Quarterly comp books had just been introduced when I began my career, delivering fresh sales data every 90 days. We would flip through the pages, locate sales similar in appearance in the same area as our subject property, select a number, and send the report to the client.

I recall a moment of upheaval in our office when the first client requested that we list three comparable sales in the comments section of the report. The response, repeated many times throughout my career, was: “Why? Trust us—we know what we’re doing.”

And for those who remember the early days of the profession, our first use of a widely accepted appraisal form was the “Green Hornet,” a distinctive document on green paper created by George Opelka around 1962. It remains a memorable artifact from a formative era in residential appraisal.

I suffer from Low T

Like many seasoned appraisers, I suffer from Low T…. Low Technology skills that is. I’ve never built a car, yet I’ve been driving one for over 50 years. I can’t code, repair a motherboard, or build a computer, but I’ve learned to use one.  

How do I stay current on the technology front? I may not be able to write a regression model or develop an AVM, but I can learn to use tools created by experts—and more importantly, I can learn to interpret the results.

If you, too, suffer from appraiser Low T, there’s a perfectly acceptable path to staying competent: embrace the many tools available to us. Staying competent doesn’t require becoming a programmer. It requires being a thoughtful, informed user of the technology that supports our work.

Market Conditions Are a Current Event

As data analysis continues to evolve, appraisal practices emphasize historical trends. However, it is essential not to overlook the influence of current market conditions on property valuation. Market dynamics as of the effective date of value play a critical role in shaping both analytical decisions and final value conclusions.

Continuing education (CE) courses and professional studies frequently base market change or date-of-sale adjustments on three to five years of historical data. While this methodology is both valid and widely accepted, it must be balanced against the realities of present-day market conditions.

Consider supply and demand dynamics within a specific submarket. Following the implementation of GSE requirements for non-linear market change adjustments in 2024, OCAP Cincinnati hosted a series of meetings to address this topic. These sessions presented compelling examples of how supply and demand can—and should—impact appraisal outcomes.

In one case, we examined a high-volume real estate market where 85 similar homes had sold within the past year. At the time of our Cincinnati presentation, only two comparable listings were active. By the time of our Dayton presentation two days later, there were no active listings. This scarcity of supply exerted significant upward pressure on prices.

On the other hand, we looked at an urban condo market that had seen rapid development. County-wide data suggested rising prices, but a focused look at that specific submarket showed a steady six-month inventory for an entire year. That’s a sign of a balanced to oversupplied market.

These examples underscore the necessity of considering current market conditions on every appraisal. Historical data provides valuable context, but real-time market forces are equally critical in producing credible and well-supported valuations.

The Influence of Supply and Demand on Adjustment Values

Supply levels directly influence how buyers behave—and that behavior affects our valuations.

In an undersupplied market, buyers have fewer choices. They’re more likely to overlook deferred maintenance and place a higher premium on desirable features. We see this in waived inspections and “as-is” offers.

In an oversupplied market, the opposite occurs. With plenty of options available, buyers become more selective. They’re less willing to accept needed repairs without a price adjustment, and even upgrades lose impact when there are many comparable alternatives.

The degree of choice available to buyers significantly affects their decision-making process. This, in turn, influences our valuation approach, market value conclusions, and—perhaps less obviously—adjustment values

Clarifying Living Area: Primary vs. Secondary

I’ve found two terms that consistently make sense to agents, underwriters, and other appraisers: Primary Living Area and Secondary Living Area. They’d be great additions to ANSI.

Primary Living Area refers to the portion of a home’s living space that carries the highest contributory value. In many markets, this typically includes the fully above-grade areas on the first and second floors. Ultimately, what qualifies as “primary” is determined by buyer preferences within each specific market.

Secondary Living Area describes the finished spaces that may hold substantial value but contribute less than the primary area. Common examples include finished basements or upper-level rooms that, depending on local market norms, may be valued differently.

By using these terms, appraisers can more effectively communicate the nuances of value contribution across different types of living space for clarity and consistency in both reporting and conversation.

What Room is This?

My mentor offered a straightforward approach to identifying and naming rooms during an appraisal: picture the home completely empty. Then ask, “What would most buyers consider this room to be?” He referred to this as determining the room’s intended use—a name now borrowed from other areas of our profession.

It’s easy to overthink this part of the job, but that simple question cuts through the noise. Whether you’re explaining your reasoning to an agent or an underwriter, this approach keeps the conversation grounded in market expectations

Critical Thinking is…. Critical.

Critical thinking isn’t something we’re born with, it’s something we learn. Just like nobody comes into the world knowing how to play an instrument, none of us start out knowing how to read a real estate market. That ability is built over time through experience, education, and the dally completion of our work.

Understanding how a market behaves has been central to my career. Every appraisal requires us to use that knowledge: recognizing the features that matter most, choosing comparables a real buyer would consider an alternate, and understanding what drives buyer decisions. For those of us who’ve been in the field a long time, being able to do this well—and do it consistently—is what set us apart as trusted appraisers.

One of today’s challenges is learning when to “trust the data.”  This hasn’t come easily to me. Data output can be confusing, incomplete, or flat-out wrong. But modern appraisal work demands strength in both data analysis and critical thinking. You can’t rely on one without the other.

In nearly every class or professional meeting I’ve attended on adjustment values, the conversation inevitably ends with a question: Does this result make sense in your market? Trust the data—but always apply your critical thinking skills. 

Appraisers Know Things

In this world where Artificial Intelligence is taking over, appraisers possess an equally powerful tool: non artificial intelligence. 

I decided years ago that I will always speak up when someone at a meeting, class, or conference dismisses the value of what appraisers know. Market knowledge is essential—it should never be minimized.  

A common refrain among speakers has been, “Appraisers don’t know what they don’t know,” especially when discussing adjustment values. You’ve likely seen the caricature: someone pushing out their belly, scratching their head, and saying, “Well, I based that adjustment on my experience!”

Let’s be clear—relying solely on experience to justify adjustments is not acceptable. But I challenge the premise that appraisers lack insight. In fact, it’s precisely because of what we know that we’re able to conduct meaningful studies.

Do you know the differences between adjacent neighborhoods that function as distinct real estate markets? Can you identify which developments compete most directly—even if they’re across town? Are you aware of which home styles are in highest demand? Does your market differentiate between Victorian and Queen Anne architecture?  Market knowledge is the result of our daily study of our real estate markets.

It took time, but I’ve learned how to make this point in a way that resonates.  Of course, appraisers know things. Here’s the key.  Today, we use data to support and validate our market knowledge. We don’t abandon what we know—we reinforce it. And we continue learning, refining our understanding of local nuances and buyer behavior.

Because appraisers know so much you will prove yourself right most of the time. But we must also accept that upon completion of our research, occasionally, we’ll find our knowledge is proved wrong. That’s part of growth—and part of the responsibility that comes with professional judgment.

The Four-Word Appraiser 101

I built my company on the foundation of clear, confident communication—whether speaking in real estate offices, lending institutions, classrooms, or industry events. My three years teaching Appraisal 101 taught me not only the material, but how to convey it effectively to students.

One of my favorite teaching moments—especially in meetings with agents or lenders—involves introducing what I call the “Four-Word, One Sentence Appraiser 101.”  This was particularly impactful one evening when presented to a group of residential real estate investors. 

Think like a…

I always pause before revealing the final word. Appraisers know the answer, but it’s enlightening to watch agents and lenders consider the possibilities. Eventually, I explain that every real estate transaction comes down to one key decision-maker: the buyer.

If we think like a buyer—whether we’re developing an appraisal or pricing a property—we align ourselves with the viewpoint of the decision maker. It is true what they say… the owner often has an overly optimistic view of their property.

Removing Variables: A Practical Approach to Comparable Selection

One of the most fundamental principles in residential property valuation is surprisingly simple—yet rarely taught or discussed explicitly. It offers a clear answer to a common question appraisers face: Why did you select those comparable sales?

In this often-scrutinized aspect of our work, the explanation frequently comes down to one concept: removing variables. This concept holds true for finding sales with equal garage stalls, bathrooms, fireplaces and so on.  

Why do we choose sales from the same neighborhood, market area, or subdivision as the subject property, rather than selecting homes from different locations? Because doing so helps eliminate variables. When we hold location constant, we hold consistent one of the most influential factors in valuation. If we introduce a variable, we must then determine whether it impacts value—and if so, quantify that impact.

Consider incorporating this explanation into your narrative about comp selection

What Is an Increasing or Declining Market?

Accurate appraisal within dynamic market environments necessitates a clear understanding of how property values evolve over time. Market cycles, whether characterized by upward or downward trends, require appraisers to apply analytical rigor, supported by experience, professional judgment, and appropriate valuation tools.

To clarify the concept of a changing market, I developed the following definition during a period of declining property values and include this in appraisal reports:

An increasing or declining market refers to a market in which historical data on property value trends, when considered alongside current market conditions such as supply and demand indicate that property values are actively shifting as of the effective date of the appraisal.

The Value of Professional Involvement

Throughout my career, one principle has consistently proven invaluable: active professional involvement. Engaging with the broader appraisal community has been among the most impactful decisions I’ve made, both professionally and personally.

Appraisers frequently operate in isolation, particularly those in independent or remote settings. Even within collaborative office environments, the insights gained from colleagues can be limited in scope. Expanding one’s professional network through appraisal organizations or peer groups fosters the exchange of ideas and contributes to overall professional growth.

Understanding Submarkets in Real Estate Valuation

In an era where traditional boundaries between neighborhoods and market areas are increasingly fluid, one principle remains constant: the importance of accurately identifying and analyzing submarkets. A clear understanding of submarkets enables practitioners to isolate and interpret the most relevant market data for valuation and decision-making.

My definition of a submarket: Properties that compete with one another for a buyer. 

Submarkets are not always delineated by zip codes, school districts, proximity or architectural similarity. A property located miles away may still be part of the same submarket if it appeals to the same buyer and offers comparable features, price points, or lifestyle attributes. This broader conceptualization challenges appraisers and analysts to look beyond conventional comparables and consider the full spectrum of competitive alternatives.

While the definition may seem simplistic, its application is powerful. In data-scarce environments, the ability to recognize and analyze competing properties serves as a reliable compass for valuation professionals. It shifts the focus from rigid geographic boundaries to functional market behavior.

 

Job Well Done

One final point to make… and one thing we seldom hear.  

You have navigated a career marked by complexity and transformation. From the days when your expertise was trusted without question, to the present era where every assignment is scrutinized, you have remained steadfast. You endured the era of sale price confirmation allegations, only to face new criticism when market dynamics shifted and sale prices outpaced comparable data—accused then of failing to keep pace with change.

You built relationships, earned trust, and became a valued voice among stakeholders. Yet even that was challenged, as the industry moved to dismantle perceived favoritism and introduced appraisal management companies as a corrective measure.

You worked through the high-pressure production years, when loan officers selected appraisers with the expectation of favorable outcomes. Despite the pressure, you upheld your professional standards.

And through it all, you persevered. You adapted, evolved, and showed up—day after day—with a commitment to truth, professionalism, and ethical practice. You weathered the criticism, embraced change, and never compromised your integrity.

This is not just survival. It is a testament to your character and dedication.

Bravo and thank you for the job well done.