Real-Life Decision Making -- Solution
You look for the positives.
This is the real-life decision made by real estate appraiser Joe Massey. "When you're arriving at your value, you've got to be objective," he says.
Massey says some appraisers always look at the negative aspects of properties. This is a mistake.
"If you look at the negative side all of the time, then your values are going to be low, because you tend to say it's not worth as much as they [the bankers] think it is."
Instead, appraisers should put aside their personal preferences and look for the positive things about a property. After all, one person's shack is another person's castle.
"Some people will buy a house because it backs onto a schoolyard," Massey says. "I wouldn't buy a house within 500 yards of a schoolyard. That's people's preferences."
By being objective, an appraiser builds a reputation for good judgment. That means more work, which means more money to buy a house closer -- or farther -- from a schoolyard.