A Well Oiled Appraisal Machine

Procedures and methodologies that allow for better efficiencies in the appraisal office are important. As a business owner, understanding time equals money is crucial. Anything that can improve the ability to do more with less (even in small doses) will pay off in the long run. Here are three suggestions to consider when setting up and maintaining a well oiled appraisal office machine.

Understand the Process

No matter how well an appraisal office is running, it is never a bad idea to step back once in awhile and look at it from the 5000 foot level. Do a quick outsiders look at how your business model is set up, and look for any inconsistencies and holes. You may discover your whole system needs to be revamped. The first step in this audit is to be willing to admit there may be a better way of doing things. This is easier said than done.

The appraisal process is similar to an assembly line. Certainly every assignment is unique, but there are certain steps taken in nearly every assignment. For example, the order is always received. It has to be logged in. Some research will need done through county records and the zoning information will need to be acquired. Obtaining a plat map and other useful subject information is pretty standard. Proper comparable selection is to be had, adjustments are to be made, and reconciliation always needs to be done. Again, each of these components may have some uniqueness, but the process is fairly standard. Wherever there are standard processes, there are procedures and ways of doing things that need to be outlined and consistently improved upon.

What is your business model? How do the elements of each appraisal get accomplished in your firm? Who does what? Who checks the work of your other employees? All of this needs to be consistently reviewed and possibly tweaked (or completely revamped) until you are running at peak performance.

Fix Minor Potholes

Once you have found a methodology that works consistently with every assignment, it would would be foolish to sit back and expect it to run flawlessly. No assignment will go perfectly, and the business model that works today will not necessarily be the one that works in the future. Pay attention to what is broken. When things go wrong, ask yourself whether or not it was a unique, one time situation, or if one of your procedures needs to be tweaked. As business owners, we do not have time to be consistently making the same mistakes over and over again. If you see that pattern emerging, it’s time to fix the potholes. It is sometimes very easy to ignore the small things because you simply do not feel you have the time to stop what you are doing and correct the problem. This is a mistake. Any civil engineer can tell you that neglecting the potholes in the road will not only cause disgruntled drivers, but will contribute to the longevity of the road in general. In other words, ignoring the small things will have a significant effect on the future of your business.

Review Your Model Frequently

On a regular basis, you should evaluate your business model to see what is working and what is not. I call this my ”On It, Not In It” (OINII) time and I am consistent about doing it each and every week. Set aside some time (calendar it if necessary) to review your business on every level. How are things working? Are there any things that need fixing or changing? How are your employees? Do they understand their job and are they doing them well? Is it time to correct someone or possibly let them go? Do you need to prepare for a future hire as you continue to grow? These are items that need to be looked at on a regular basis if you wish to have consistency and longevity in your business model.

Conclusion

Most of the appraisers I know are wonderful technicians. They are educated and experienced in appraisal matters and are experts at what they do. Unfortunately, it seems to be a rare breed for someone to be both an expert appraiser as well as a competent CEO of their appraisal company. Being a competent appraiser is important. Being able to run your business successfully is essential!