Our Appraisal Report Writing Have Ridiculously Low Error Rates! Why is that?
Appraisal report writing takes time and effort to complete. Every piece of information contained in that report must be accurate and up-to-date, and the whole property valuation report must be compliant with the Uniform Standards of Professional Appraisal Practice (USPAP). It’s no surprise therefore that many of our prospective clients are amazed whenever we show them the numbers. We’ve maintained an error rate of less than one percent, year after year, with our appraisal report writing team.
Looking through the processes we implemented since we began working with appraisers, we identified several reasons why we were able to achieve this much with just a small team.
#1 We have more engaged agents in our back-office teams.
The level of ownership and accountability that Fair Trade Outsourcing agents have toward their work push them to become doubly invested in their jobs. Thus, they strive to improve their productivity and build their capacity, from communication to leadership skills. When we started providing the directed training for English proficiency up-leveling, we had around 50% of our appraisal back-office teams participate in the morning and evening classes.
Aside from the EP classes, we also have a Leadership and Mentoring Program where budding leaders and current direct managers and team leaders learn from the company’s executive managers. The program creates a mentor-mentee relationship between the veteran and younger generations of leaders. The program also encourages team leaders and direct managers to learn various coaching techniques and developing the skills needed to effectively counsel an employee and help them grow as human beings.
#2 Quick access to information and necessary tools.
We don’t scrimp on the quality of information that’s available from both paid and free resources that are available online. Our agents use web-based apps, such as a sketching tool, that can be used on-demand. When the appraiser is doing an inspection, he shares the video and photos from his visit as well as the exact measurements of the property inside and out through a video call. That kind of up-to-date and accurate information isn’t easily found on listing services.
#3 Our appraisal report writers have their basic needs satisfied through the fair trade outsourcing model.
They are paid a living wage income, receive free health care, and enjoy a trustful work environment — aspects of their personal and professional growth that the fair trade outsourcing model aims to satisfy. The living wage income that Fair Trade Outsourcing pays its employees is, at least, 2.18 times the poverty wage of the country where the agents live and work in. Not only that, the company makes sure every employee has free access to health care services through an HMO plan. Their beneficiaries also get to enjoy the same privileges that the employees have when it comes to health care.
Perhaps, the last of this basic needs lineup, the trustful work environment, has a more direct effect on an agent’s performance at work compared to the others already mentioned. A trustful work environment doesn’t happen overnight. It’s a consequence of a positive company culture, which thrives when the people that comprise the organization completely embrace the values and principles of the fair trade outsourcing model. We achieved this through the Agent Bill of Rights, which ensures the well-being and safety of every employee, whether he or she is an agent or one of the managers and team leaders, is protected.
Typical Error Rate in Appraisal Report Writing
Based on our experience, each appraisal report has 900 data points (more or less). With hundreds of data points to fill in, it’s normal for real estate appraisers and their back-office teams to miss a thing or two. They’re often minor errors that are immediately fixed before the report is submitted to the client.
However, the number of data points isn’t the only barrier to producing USPAP-compliant reports. The availability of updated information, exact measurements, and very recent photos are also some of the ongoing challenges that appraisal back office assistants must overcome.
An appraisal report with those kind of mistakes can put at risk the approval process for a loan or prevent the seller or buyer from closing a sale. The reasons for rejection may vary; sometimes, it’s because the appraiser selected the wrong comparables. Other times, the appraiser omitted the explanations for certain adjustments he or she made to the final property valuation.
The typical error rate for the appraisal report writing process isn’t generally known because the quality and speed of producing each report vary based on the appraiser’s level of experience and the tools and resources available to them. However, in a data-driven company like Fair Trade Outsourcing, you’re assured that our agents can produce at least 10 reports in a week with 9,000 data points, and still maintain an error rate of 0.07% for the whole week (and not per report).
If you really think about it, the error rate for appraisal report writing at Fair Trade Outsourcing might even be lower than the estimated number of plane crashes that could happen in a year.
If this seems like something you’d like to explore further, click the button below to set an appointment with our outsourcing consultant. Ask about how you can get your own outperforming team today!