Client Feedback and the Role of the Appraiser

Appraisers routinely work at solving ill-structured valuation problems where the normative performance criterion is an objective judgement of market value as of the valuation date. This study, theoretically grounded in the lens model of perceptual theory, investigates the effect of client feedback on appraisers’ perceptions of their role in the loan underwriting process. It investigates the extent of cognitive departure from the normative role toward perception of being a validator of pending sale prices. An instrument is devised to measure environmental perception feedback, coercive feedback and positive reinforcement of the normative performance criterion. Client feedback is found to have a significant effect on appraisers’ role perceptions and on appraisers’ perceptions of the of the lender-client's performance criterion. Appraisers who receive a great deal of environmental perception feedback and coercive feedback are more likely to view themselves as price validators, whereas appraisers exposed to positive reinforcement of the normative performance criterion are more likely view themselves as providers of objective opinions of market value.