“Measure it in Micrometers and Cut it with an Axe”

Having grown up in an appraisal family, as have so many of my peers, we can all smile when remembering the wisdom and humor that was discussed during family dinners, and “get togethers” of all kinds. I am tempted to write a book some day dedicated to all the one line quips that my father and mother, both appraisers, use to say. My parents were the single driving force that shaped me into the kind of appraiser I am today, so if you don’t like how I do things… Blame them! (smiling).

You are wondering by now why you are continuing to read this particular post, or perhaps even this blog. Actually I am wondering the same thing, but still I have this innate ability to stretch out a punch line until it is almost painful. So what does any of this have to do with the appraisal process? Or does this post have any point what-so-ever?? Great questions. Surprisingly, the answer is that this almost meaningless post has an incredible resemblance to so many appraisals that I have read and perhaps even written over the years, that the process of writing the post is worth the effort.

“What in the heck am I talking about?!” That is my point actually. So many reports are filled with fluff and irrelevant data just so that the appraiser can fill up white space and “impress” the user of the report. Actually, an impression is made, however, I am sorry to tell you that the impression is not one that is favorable.

My father used to say, when developing an appraisal you have to take the time to identify all the relevant information and data that relates to the subject and then measure this data very carefully, very precisely, then once all the analysis is complete, you back up off of the data and take your best guess. His actual words were “measure it in micrometers and cut it with an axe“. This approach should also be used in the presentation as well.

For any of my readers who have ever used an axe, you will appreciate this saying. The use of an axe is final, you don’t hack about or you will completely destroy what ever you are attempting to cut. You plan the strike, you take the proper stand, and you let the blade fall. When you are skilled with an axe you can fell a tree, or cut a very large log to firewood in a matter of moments. Still, the use of an axe is not as precise as one might expect from a “professional appraiser”. Nonetheless, I submit for your consideration, the market data that we often have is not precise, it is often not complete and confirmation or verification is second-hand at best. Therefore, when you read a report that has exact adjustments like $5367 or $3,332 it is clear that the report appraiser did not know how to turn on the rounding feature in the appraisal software. Unfortunately some intended users are not sophisticated enough to realize that these adjustments, although taken from the market, are “best guesses” and these users can be really upset if the “guess” is wrong. Trust me, you have no desire to find yourself in court in front of a judge and have the opposing attorney ask you “So {Insert Name Here}, please share with the court the deductive reasoning that was used to prove why this gross living area adjustment should be $5367 and not $5,500 or $5,000.”  When you take a stance of being so very exacting with your presentation, you place yourself up as being this “all-knowing appraisal guru” but the reality is that the presentation is weakened because anyone who has been in the business longer than a presidential term can tell you that market data is never that detailed and never that exact.

Take time to analyze the data and measure it as precisely as possible, but at the end of the analysis when you are reporting your final conclusions, let your opinion fall where it may. Remember a professional never strives for perfection, a professional strives for excellence.

See you around the water cooler!

Advertisements

Leave a Reply

Please log in using one of these methods to post your comment:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s