Objective vs. Subjective: Words Matter

As part of Freddie Mac's continued commitment and mission to comply with fair housing and lending guidelines, they are making technology enhancements to identify certain subjective language patterns in appraisal reports that don't comply with their published Single-Family Seller/Servicer Guide requirements. Using certain descriptive words or phrases without contextual support is a guide violation. It can result in an appraiser receiving direct communication from Freddie Mac when a pattern is identified.

In Guide Section 5603.4, Freddie Mac publishes several sample words and phrases considered subjective when used in an appraisal report. That said, this list is not all-encompassing. Instead, they are examples of subjectivity that need more clarity. For instance, what I consider within walking distance might be outside walking distance of others.?

What would you say if I asked you to describe the taste of chocolate? You might say that it has a rich sweet taste that is creamy with a smooth texture. Others might say it is slightly bitter with fruit, nutty, or floral notes. Given the different kinds of chocolate, both responses are understandable. However, what would you think if someone said it tasted like vomit? What?

While watching YouTube the other day, I witnessed a panel of people from Europe tasing different American chocolates. When they came to the gold standard, Hershey's Milk Chocolate, some panelists were grossed out and said the chocolate tasted like vomit. I was shocked. How could they think the first thing I raided from the Halloween bags of my children (when they were younger) tasted so disgusting? As it turns out, there is a reason for this, but that isn't the point of this post. If you are interested in the details, feel free to Google away.?

My point is this, the taste of chocolate is subjective. Different people have different taste preferences; what one person might describe as delicious and rich, another might describe as tasting like... well, vomit. Furthermore, personal experiences and memories, both good and bad, can influence a person's perspective. People are like a box of chocolate; we're all different.

Objective refers to something based on facts and evidence that anyone can observe and measure, regardless of personal thoughts or feelings. On the other hand, subjective refers to something based on personal opinions, feelings, or experiences and is not necessarily verifiable or measurable. Simply put, objective information is based on facts, while subjective information is based on personal opinions and feelings. If you need a barometer, ask yourself if others could understand the meaning of the word or phrase differently.?

Subjectivity isn't a bad thing. People with different views and ideas can lead to more creative or innovative solutions to problems. It also promotes inclusivity and diversity by recognizing that people come from different backgrounds and look at the world differently. Let's face it; the world would be pretty dull if we were all the same.

Objective data is essential for making informed decisions and developing theories or models. Sticking to the facts when reporting information about the subject location, site, neighborhood, and property characteristics is critical. An appraiser should focus their opinion on market value. Supported, of course.?

Bill Waltenbaugh is a certified appraiser with over 30 years of experience in the real estate appraisal industry. With years of experience as a Chief Appraiser and Director of Compliance, Bill has developed a proven track record of implementing necessary policies and procedures to ensure quality and compliance.

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