Reasons to Acquire a Real Estate Appraisal
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Home Page > Finance > Real Estate > Reasons to Acquire a Real Estate Appraisal
Reasons to Acquire a Real Estate Appraisal
Posted: Mar 24, 2008 |Comments: 0
| Views: 229
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Reasons to Acquire a Real Estate Appraisal
By: Brayan Peter
About the Author
Brayan Peter is a Copywriter of Glendora reo appraisals He written many articles in various topics. For more information visit: Indio reo appraisals Contact him at premiersappraisal@gmail.com
(ArticlesBase SC #367712)
Article Source: http://www.articlesbase.com/ – Reasons to Acquire a Real Estate Appraisal
There are many reasons to obtain a real estate appraisal. The most common reason to acquire an appraisal is to settle an estate. Taxing authorities often need real estate appraisals in order to establish the value of a real estate or property when a death occurs. Usually the survivors wish for a conservative value estimate which limits their tax liabilities as much as possible. Most of the estate appraisals are ordered through attorneys and not by the survivors. Another reason is to establish the substitute cost for insurance. Appraisals acquired for establishing the loss risk in case of fire accidents are mostly limited to offering a reproduction cost of the improvements or an estimate of the replacements. The insurable value may not be the representative of market value and usually doesn’t include the land’s value. Insurance agents might order real estate appraisals when their cost service manuals are not adaptable to a structure or a typical home. Owners of properties might order appraisals to contest the yearly appreciation increase that is mandated by certain insurance companies, particularly when there is a raise in the insurance coverage which results in an impractical premium.
To get a compensation for condemnation, the appraiser might represent either the condemning authority or the landowner. Generally the government entity which requires land for its usage orders an appraisal and purchases the land for the cost mentioned by the appraisal. If the land owner thinks that the sum offered by the condemning authority is not sufficient or adequate, then the land owner may order an appraisal. If both the parties couldn’t decide on a cost, then the issue will be settled in a court with each others appraiser testified on behalf of their respective estimated values. Appraisers aren’t advocates for their clients; they are just the expert witnesses who are trying to hold up their estimated values. Land owners often do not consider ordering another appraisal from an appraiser of their choice. Usually, they try to settle with the concern authority by a negotiation rather than receiving the expense of the appraisal. It is very much clear that the land owner’s negotiating position would be enhanced if a supporting professional appraisal report were accessible.
Another reason to get an appraisal is to contest in high property taxes. For instance, if property owners think that their properties are assessed very highly then the property owners can order an appraisal from an appraiser who is qualified to contest the tax assessments. In some parts of US, this practice is quite common but lot of property owners isn’t aware that this avenue for decreasing their tax load is available. The investment return is easy to perceive when the price of the appraisal is compared to many years of lower taxes. Occasionally these assignments contain an appearance in front of the equalization panel to argue the land owner’s case. However the appraiser must be watchful not to base the appraisal charge on the dollar amount of the value appraised that might be a violation of USPAP.
Retrieved from “http://www.articlesbase.com/real-estate-articles/reasons-to-acquire-a-real-estate-appraisal-367712.html”
(ArticlesBase SC #367712)
Brayan Peter -
About the Author:
Brayan Peter is a Copywriter of Glendora reo appraisals He written many articles in various topics. For more information visit: Indio reo appraisals Contact him at premiersappraisal@gmail.com
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Brayan Peter is a Copywriter of Glendora reo appraisals He written many articles in various topics. For more information visit: Indio reo appraisals Contact him at premiersappraisal@gmail.com
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Home Page > Finance > Real Estate > Why Use Appraisal Management Companies?
Why Use Appraisal Management Companies?
Posted: Mar 15, 2010 |Comments: 0
|
Why Use Appraisal Management Companies?
By: TBledsoe
About the Author
Signing up with a complete list of appraisal management companies will give you the greatest chance of bringing in quality business. For a list of over 300 verified appraisal management companies, go to www.amc300.com.
(ArticlesBase SC #1992285)
Article Source: http://www.articlesbase.com/ – Why Use Appraisal Management Companies?
Many appraisers are completely against using appraisal management companies. But there are a number of great reasons to use them to your advantage. This article will discuss the three main reasons to use AMC’s.
It has been almost a year since the appraisal industry instituted the new HVCC rules which required most real estate appraisal transactions to be handled through appraisal management companies. Many appraisers have been reluctant to use AMC’s because of the bad reputation that many of them garnered for various reasons. While there are many reasons to stay away from appraisal management companies, there are more reasons why you should use their services.
The first and most obvious reason to sign up for appraisal management companies is to bring in more work. While it is possible to bring in local work from attorneys, CPA’s and independent banks, the quantity of work is so minimal that it would probably not sustain you in the lifestyle that you desire. Obviously, during economic downturns, we all expect a loss of work, but without the use of AMC’s, you are most definitely setting yourself up for trouble.
The second reason to sign up with appraisal management companies is because the marketplace seems to be setting itself up for more regulations, not less, as we all hope. Despite all the petitions of appraisers and opposition, regulatory organizations do not appear to be backing down. While amendments may be conceded to in the future, the complete HVCC rulings will probably not be thrown out.
Third, there has been a drop in the number of appraisers due to bankruptcy and also a dip in the number of new appraisers because of more stringent rules for new trainees. Many appraisers have closed their doors due to lack of work, with their numbers reaching into the thousands. Pair this together with more education requirements for new incoming appraisers and it leaves a big gap that needs to be filled by current appraisers. There are still many appraisal management companies searching for more appraisers to fill their needs.
With FHA implementing their new rules at the beginning of 2010, it appears well over 90% of all jobs are flowing through AMC’s. The work is available to those who are looking for it.
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(ArticlesBase SC #1992285)
TBledsoe -
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Signing up with a complete list of appraisal management companies will give you the greatest chance of bringing in quality business. For a list of over 300 verified appraisal management companies, go to www.amc300.com.
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Home Page > Finance > Real Estate > What Do Appraisal Management Companies Really Pay?
What Do Appraisal Management Companies Really Pay?
Posted: Feb 25, 2010 |Comments: 0
|
What Do Appraisal Management Companies Really Pay?
By: William Jakes
About the Author
Order your AMC Directory Today at www.amc300.com.
(ArticlesBase SC #1907864)
Article Source: http://www.articlesbase.com/ – What Do Appraisal Management Companies Really Pay?
Do you often wonder why some appraisers enjoy getting work from appraisal management companies and others won’t go anywhere near them? There are several factors involved in the pay scales of each appraisal management company. This article will discuss the factors involved and give you some tips on how to bring in more work for your company.
If you have been to any appraiser forums or discussion groups, you will often hear conflicting opinions on appraisal management companies. Some appraiser love them and others won’t go near them, either because of their own experience or horror stories they have heard.
There are several factors involved in what a management company will pay an appraiser. These include:
Numbers of appraisers on their approved list â
Some appraisal management companies have no restrictions on the number of appraisers it accepts from a given area, city, county or state. The more appraisers they have listed the less they have to pay. For example, a large firm with thousands of appraisers may only pay an appraiser $250 for an appraisal. They know that someone on their list will accept the fee and do the work in the allotted time.
Where you are located geographically â
If you are located in a large metropolitan area, competition is fierce and management companies will pay less due to the number of appraisers in the area. If you are located in a smaller town, especially when all the appraisers agreee on minimum fees, the management companies are forced to pay full rate for the appraisal.
Whether they operate on a bid system â
Regardless of where you are located, some companies work on a bid system. Basically, whoever responds in the quickest amount of time with the lowest bid, wins.
What type of appraisals you perform â
This takes into account your license level and complex appraisal issues. For complex appraisals many appraisers are contacted personally to see if they will accept the job and, often, are asked to bid on the job.
Rush Orders â
Most companies will pay extra for rush jobs, although not significantly more unless the rush is requested to be completed in 24 hours or less.
How to Bring in More Work for Your Business
Based on the information above, you may be tempted to disregard working for appraisal management companies all together. Here are some tips to bring in more appraisal work without giving your services away.
Sign up for as many AMC’s as possible â
There are hundreds of appraisal management companies available that you can sign up with. While some focus on a specific geographical area, most are national. There are dozens of smaller AMC’s (and some larger networks) that don’t work on a bidding system, offer great compensation and decent turn times.
Accept more complex appraisals â
If you sign up for an AMC that works on a system that you are not happy with, just let them know that you specialize in complex appraisals and price your fees accordingly. You may not get as much work from them, but if you sign up with many management companies, it will bring in a consistant income.
Accept rush orders, as long as it doesn’t compromise your quality of work â
Depending on you and your knowledge of your market area, you may be able to accept rush jobs that won’t compromise your work.
Upgrade your license â
Some management companies are only accepting appraisers that are certified or they pay more for appraisers that have an upgraded license. If you are not already certified, this is a great way to promote yourself and gain more business.
Become an expert in another area â
By expanding your borders you may be able to bring in more work for yourself, especially if you are willing to travel someplace that others are unwilling to go.
Look for work outside of AMC’s â
While it may take some effort to generate business outside appraisal management companies, it is well worth the effort. Market yourself to attorneys, CPA’s and local banks that fund their own loans.
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Home Appraisal – Determining the Home’s Value for a Short Sale Package
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Home Page > Finance > Real Estate > Home Appraisal – Determining the Home’s Value for a Short Sale Package
Home Appraisal – Determining the Home’s Value for a Short Sale Package
Posted: Mar 25, 2009 |Comments: 0
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Home Appraisal – Determining the Home’s Value for a Short Sale Package
By: Colin Egbert
About the Author
Colin Egbert is an experienced
Real Estate Investor with plenty of short sale techniques to aid fellow investors in their quest to succeed and make huge profits. He’s the author of the ebook “Getting Started with Short Sales” providing the tools needed to start your own real estate investing business. Colin is also the CEO of Realestateinvestor.com a website dedicated to helping investors make the most of their business.
(ArticlesBase SC #833979)
Article Source: http://www.articlesbase.com/ – Home Appraisal – Determining the Home’s Value for a Short Sale Package
One of the most important aspects of the short sale business is determining the value of the property you have under contract. Itâs impossible to formulate your offer to the short sale lender without knowing the home appraisal value of the property you are interested in. Likewise, knowing the appraisal value of the property is just as important to the loss mitigator at the bank. The loss mitigator must establish an appraised value for the short sale property so he has a baseline price for negotiation. The appraised value of the property establishes the playing field on which we negotiate the short sale price of the property.
Getting Property Comparisons
The best way to determine the home appraisal value of a property is by using property comparisons (comps). Look at the properties in the same area of the short sale property.
You can get these comps with a little effort. There are a few ways to find market value comparisons for your area:
⢠Subscription programs (one is Haines, a subscription service on disc)
⢠Multiple Listing Service (MLS) if you have access
⢠Network with a realtor who can pull comps for you
⢠Free comps services on the Internet
Itâs not recommended that you use the free market comparison services found on the Internet. These free services are worth about as much as you pay for them. If you have to spend some money getting comps, thatâs a good thing. It means that someone is actually doing research behind the website or program.
Finding Home Appraisal Value: An Example
A busy real estate investor may outsource their home appraisal needs to another company or a certified FHA appraiser.
When a deal comes in the real estate investor will email the FHA appraiser, the address and ownerâs name. In about 24 to 48 hours the appraiser will send back a limited desktop appraisal with three comparison prices on other similar sold properties and the market value that the appraiser has determined for the property that the company is interested in. The appraisal may also include some additional information and a map.
This appraisal gives an idea of the market value of the property in comparison with other distressed properties in the area. When looking for comps, donât look for sales of well maintained properties, instead look for comparisons of other properties in foreclosure, REO properties, or corporate-owned properties.
Be Prepared to Pay for it!
Companies spend money getting their comps because they want good, accurate market value comparisons. When you are figuring the budget for your short sale business, remember to allocate some funds to pay a company or a certified FHA appraiser for that home appraisal. Itâs well worth it to pay for a home appraisal so that you have accurate comps from third person parties or neutral parties outside of your short sale deal. You present their appraisals as objective evidence to convince the bank to accept your short sale offer.
Factoring in Cost Estimates for Repairs
The physical condition of the property is just as important as comps in a home appraisal. See if there are any repairs to be made on the short sale property. Make notes of whatâs wrong, take photos, and get construction estimates for the cost of repairs.
When you do your cost estimates remember that the bank will be making the repairs, not you. Get cost estimates from a general contractor the bank would typically hire.
The best way to get cost estimates for your home appraisal is to hire a certified home inspector. You can look one up in the yellow pages. Thereâs also an organization called the National Association of Home Inspectors (NAHI). NAHI has high standards and finding a home inspector affiliated with this organization is a good way of making sure you get a thorough inspection.
A typical home inspection can take two and a half to three hours. The inspector gets up on the roof, checks the crawlspace and goes over the home with a fine-toothed comb. On completion of the home inspection the inspector hands over a report that can be 20 pages with detailed information about the property defects. Home inspectors may also takes photos and provide detailed cost estimates.
Paying a home inspector to get cost estimates is a great way to calculate the home appraisal value for your property. Youâll know exactly whatâs wrong with that house because youâve gone to a neutral third party expert.
Getting the Cost Estimates: An Example
Dan Shields is a typical home inspector. Heâs a member of NAHI and does all of the home appraisal evaluations and repair estimates for many investors.
Dan states that a home inspector will start an inspection from the outside of the property to get a look at the big picture. Heâll check the roofing, gutters, siding, and windows to make sure theyâre properly installed and flashed. He will also check out porches, columns, etc.
From there the home inspector enters the home for the interior survey, to document built-in amenities, appliances, and flooring. He will next go to the mechanical room and check the heating/cooling package and plumbing. Finally, the home inspector will check the attic and find the insulation factor for the short sale property, literally working from the ground up on the home inspection.
A Brokerâs Price Opinion Value
When you complete your home appraisal and submit the short sale package to the bank you will be assigned to a specific loss mitigator who will want to determine their own estimate of property value.
The loss mitigator orders the bankâs appraiser to go look at the property and get a brokerâs price opinion (BPO) or market value. Sometimes itâs done by a realtor, sometimes an appraiser. Itâs your job to be the contact person that the appraiser goes through to get into that property. Itâs very important that you meet the appraiser at the property to convince him your home appraisal value is about the same as the BPO value.
When you meet with the bankâs property appraiser let him know the property is in foreclosure and that youâve been working with the seller to try to do a short sale with the bank. Get that point across immediately.
You don’t want the meeting with the bankâs appraiser to be a confrontation. This is first impression time, so just be yourself and let your personality shine. Shake hands with the property appraiser. Get to know him for the five minutes before you start shoving your material on him.
The whole BPO process will probably take less than 15 minutes. You have 15 minutes to let your personality shine so make it your best effort.
During the BPO
When you go out to these appraisals, take three things; a copy of the Real Estate Purchase Contract with your offer amount, your market value comparisons and a copy of your home inspectorâs report
Try to present the material in a conversational tone. Ask if heâd like a copy of the offer you have made on the property and so on. If itâs an appraiser, he will always want a copy. Realtors are a different storyâyou can never tell what theyâre going to take. Just ask and see what heâll take from you. An appraiser will always take the property inspection report because itâs a good, neutral indication of property damage.
Let the appraiser know that your Purchase Contract has been at least preliminarily accepted by the bank and thatâs why he is appraising the market value. Youâd be surprised how often the bankâs appraiser doesnât even realize the property is in foreclosure.
You also want to share comps with the home appraiser. Most of the time, appraisers have pulled comps before they go out to the property, so you may be able to share comps to get an idea of the BPO. Make sure the appraiser knows about specific problems with the property such as; mold, termites, or foundational problems that are not readily apparent. This is something the appraiser wonât spot during his 15 minutes with the property.
Once you get these three documents into the hands of the bankâs home appraiser chances are higher that the bankâs BPO comes in close to your home appraisal value. When you get a good home appraisal value and cost estimates on that short sale property. Youâll have armed yourself with the best tools in convincing the bank to accept your low short sale offer.
Pick up more information about real estate shortsaling at Real Estate Investor.com. This is the place to go for the latest real estate news and advice. Youâll find a network of other real estate investors ready to help you out, along with free articles, blogs, contracts and documents for your use.
Retrieved from “http://www.articlesbase.com/real-estate-articles/home-appraisal-determining-the-homes-value-for-a-short-sale-package-833979.html”
(ArticlesBase SC #833979)
Colin Egbert -
About the Author:
Colin Egbert is an experienced
Real Estate Investor with plenty of short sale techniques to aid fellow investors in their quest to succeed and make huge profits. He’s the author of the ebook “Getting Started with Short Sales” providing the tools needed to start your own real estate investing business. Colin is also the CEO of Realestateinvestor.com a website dedicated to helping investors make the most of their business.
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Texas Real Estate Appraisal Courses Offer a Stable Future
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Home Page > Finance > Real Estate > Texas Real Estate Appraisal Courses Offer a Stable Future
Texas Real Estate Appraisal Courses Offer a Stable Future
Posted: Aug 29, 2009 |Comments: 0
|
Texas Real Estate Appraisal Courses Offer a Stable Future
By: DanielStafford
About the Author
Brigette Botkin.
Want to take Texas real estate appraisal course ? Then consider The Austin Institute of Real Estate’s online correspondence courses.
(ArticlesBase SC #1174186)
Article Source: http://www.articlesbase.com/ – Texas Real Estate Appraisal Courses Offer a Stable Future
Rumors are circling that jobs in the real estate market aren’t stable, but the opposite is actually true. Real estate appraisers and assessors will always be needed, because their place in the real estate market makes them irreplaceable. Appraisers estimate the value of property for a variety of purposes: to assess property tax, to confirm adequate collateral for mortgages, to confirm or help set a good sales price, to settle an estate, or to aid in a divorce settlement. This is something even the weakest real estate market cannot do without.
Not only is the employment of appraisers secure, but according to the Bureau of Labor Statistics, the need for appraisers and assessors of real estate is expected to grow at an electric rate. Job opportunities will be more than favorable for appraisers who meet licensing qualifications and have the right experience.
Employment of appraisers and assessors of real estate is expected to grow by 17 percent over the 2006-16 decade, which is faster than the average for all other occupations. More appraisers will be hired to help with litigation claims, probate cases, foreclosures, business valuations, and divorce settlements. With this additional growth in real estate activity, the employment of appraisers will steadily grow. Employment of assessors will also increase with the amounts of real property to be assessed in coming years. Independent fee appraisers will see the strongest growth because banks and other financial institutions are increasingly contracting work out to make loan appraisals on a case-by-case basis.
For more than 60 years Texas has required a license to appraise real property for a fee, or be otherwise exempted by law. The authorized Appraiser Trainee classification is a way to legally appraise real property and gain the necessary appraisal experience to later become certified or licensed. Unlicensed real estate appraising is a Class B Misdemeanor.
Appraisers and assessors must possess good analytical skills, mathematical skills, and the ability to pay attention to detail. Homeowners need educated people with working, overall and specific district knowledge of the appraisal process. They need an experienced real estate appraiser with knowledge from an in-depth Texas real estate appraisal course.
The requirements to become a fully qualified appraiser or assessor are complex and vary by state. Sometimes it can also vary by the value or type of property. Prospective appraisers and assessors can gain in-depth knowledge about specific requirements from their Texas real estate appraisal course. For information about a Texas real estate appraiser license, you should contact an knowledgeable company with years of understanding every district in the state, like the Austin Institute of Real Estate.
The Austin Institute of Real Estate offers the Texas real estate appraisal courses you need to get a Texas real estate appraiser license. The Austin Institute has more than 20 years experience in training real estate professionals. The Austin Institute of Real Estate is more than just a licensing school, it is the Business School for Real Estate Professionals. For two decades the Institute has helped students develop into real estate professionals. For more information about Texas real estate appraisal courses call (512) 453-0900, or visit the institute online at www.austininstitute.com.
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(ArticlesBase SC #1174186)
DanielStafford -
About the Author:
Brigette Botkin.
Want to take Texas real estate appraisal course ? Then consider The Austin Institute of Real Estate’s online correspondence courses.
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Home Page > Business > Human Resources > Now What? What to do AFTER you scrap your performance appraisal system
Now What? What to do AFTER you scrap your performance appraisal system
Posted: May 09, 2010 |Comments: 0
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Now What? What to do AFTER you scrap your performance appraisal system
By: Fred Nickols
About the Author
Fred Nickols is a writer, consultant and former executive. Currently, he is the managing partner of Distance Consulting LLC. He may be contacted by email at fred@nickols.us.
(ArticlesBase SC #2331190)
Article Source: http://www.articlesbase.com/ – Now What? What to do AFTER you scrap your performance appraisal system
In an earlier article I argued against redesigning a company’s performance appraisal system, and made a case for eliminating it. Performance appraisal is such an accepted part of organizational life that the prospect of eliminating it raises several questions. The purpose of this paper is to set forth and answer those questions. Briefly, they are as follows.
If we didn’t have a performance appraisal system,
How would people receive feedback?
How would people find out what is expected of them?
How would employees get their work objectives?
How would individual and organizational interests be aligned?
How would employee training and development needs be determined?
How would people be recognized and rewarded?
How would merit raises be determined?
How would the organization protect itself against lawsuits for wrongful dismissal or discrimination?
If we didn’t have a performance appraisal system, how would people receive feedback?
Answering this question requires distinguishing the common usage of “feedback” from its technical usage. [ Three additional sources regarding the concept of feedback as it pertains to behavior and performance of and in organizations are listed at the end of this article.]
People can be regularly heard saying something like the following, “Let me give you some feedback.” They also can be heard asking for it. In this usage, “feedback” refers to information provided or solicited. Such information often pertains to how the person who is receiving it is perceived by the person who is providing it.
It is useful to know about the judgments others make of us, but if the only time we seek or obtain such information is at performance appraisal time, we are managing our lives and careers on the basis of very skimpy and highly unreliable information. Information about how we are doing needs to be and is ordinarily gathered on an ongoing basis. Those of us who care to know have a sense of where we stand with others.
The preceding remarks apply to the common usage of the term “feedback,” which is a far cry from its technical meaning. The technical meaning of “feedback” is concerned with control. In this context, feedback is information about actual conditions in relation to some reference condition. Underlying this view of feedback is the observation and measurement of results and the use of this information in controlling the actions that produce the results.
It seems unlikely that any information received in a performance review session would qualify as feedback in the control system sense. If the reference condition is some result expected of the employee, whether stated in terms of outcomes or compliance with procedure, then the employee must be able to ascertain if that result is being achieved while doing the work. [ See Joseph M. Juran's comments about self control in Managerial Breakthrough , pp. 189-190.] Thus, at performance appraisal time, the employee would already know the extent to which the desired results had or had not been achieved. If employees are not privy to expected results, nor to information regarding their attainment, then results will be happenstance and the difficulty will lie with the system, not with the employees.
The answer to the question “How would people receive feedback?” is that they would receive it the same way they do (or don’t) now C as a regular, integral part of their working activities. It stems from their observations of their working activities and the effects and consequences of those activities in light of their own intentions (whether or not these intentions are consistent or inconsistent with the expectations of management).
To paraphrase an old political saying, “All feedback is local feedback,” which is why work and work control systems must be designed to provide information directly to employees on as close to a real-time basis as can be made to happen, and not as some after-the-fact judgment rendered by someone who is far removed from the work itself.
If we didn’t have a performance appraisal system, how would people find out what is expected of them?
Except for people who are engaged in routine, repetitive work, expectations change on a regular, usually a short-interval basis. Expectations must be communicated continually, not once or twice or even four times a year. More important than the frequency with which expectations are communicated is the clarity with which they are communicated. Clarity usually emerges over time, the result of a continuing dialogue, not a one-time transmission. Because expectations change, they must be discussed on a regular basis. The frequency of such discussions must match the rate of change in the work itself. To rely on annual or even quarterly performance reviews as the mechanism for conveying what are essentially unfolding expectations seems likely to prove singularly ineffective.
If we didn’t have a performance appraisal system, how would employees get their work objectives?
The blunt truth is that, if they have any work objectives at all, most people set their own. This is the era of knowledge work and the knowledge worker. [ This brief paper is no place to elaborate on the implications of the shift to knowledge work. Readers who are unfamiliar with this civilization-shaking phenomenon would do well to consult two of Peter Drucker's books: The Age of Discontinuity, and Management.] Many so-called “bosses” (if that term has any utility at all) are in no position to set work objectives, to monitor their accomplishment, or to supervise their pursuit. The work, especially at the task level, is in the hands and the heads of the workers. To be sure, a manager could formulate goals and objectives having to do with improvement in work processes and the like, but if these must be left to the workers to realize, who needs the manager? An even better question is “Who needs work objectives?”
Work objectives are time-tied, measurable expectations of results. As stated earlier, these need to be developed as part of an ongoing stream of two-way dialogue, not as part of some periodic ritual designed to reinforce the illusion of control. Performance appraisal systems are not necessary to the development of clear, mutually understood and agreed to work objectives. Indeed, owing to their punitive aspects, performance appraisal systems might well constitute a hindrance to setting work objectives, not a help. [ There is no better discussion of this point than Douglas McGregor's classic HBR article, "An Uneasy Look at Performance Appraisals." Harvard Business Review (May-June 1957).]
If we didn’t have a performance appraisal system, how would individual and organizational interests be aligned?
Why do they have to be aligned? The transaction between the individual and the organization is frequently little more than an economic exchange; pay and benefits in return for work performed. [ See March and Simon's book, Organizations, for a clear exposition of the concept of contributions and inducements.]
The alignment to be achieved here is between pay and benefits and the work contributions expected from the employee. Keeping pay scales aligned with the labor market is probably more important than anything that happens in a performance appraisal session. Again, it is a process of regular, ongoing, two-way dialogue that is required, not periodic appraisal sessions where the employee is being judged.
If something more in the way of commitment and caring on the part of the employee is desired, it is the employee who does the aligning, not the organization. That kind of alignment occurs on the basis of values, of the standards and principles people hold dear. If the individual doesn’t require such alignment, the transaction between the person and the organization will be the mainly economic one described above. If the individual does require such alignment, it will be there or it won’t. In other words, the employee can look about at the behavior of others, at the actions of the organization, at the decisions of its leaders, and determine whether or not his or her values and those of the organization are aligned. If they are, all is well and good on that score. If not, the individual can leave, tolerate the discrepancy, or work to change the values evinced in the organization. Conversely, representatives of the organization’s culture, both formal and informal, might move to inculcate a different set of values in the employee and, failing that, might opt for disciplinary measures, including termination. Technically speaking, an organization has no values, only people have values. Thus, the oft-stated desire to align individual values and interests with those of the organization really refers to the aim of having employees behaving in ways that are consistent with the directions provided by management and compatible with the culture of the organization as defined by those same managers. Neither of these long-term, socio-cultural aims is likely to be realized through a periodic review of job performance.
If we didn’t have a performance appraisal system, how would employee training and development needs be determined?
The answer, in a nutshell, is through assessment. This might be a formal, structured assessment, perhaps a performance test, or it could be an informal, loosely-structured assessment, as when a person takes stock of his or her strengths and weaknesses in relation to job requirements. A performance appraisal system is not required for either kind of assessment. To rely on performance appraisal systems as the primary means by which such assessments are conducted is to put performance appraisal systems to a use for which they are ill-suited and, at the same time, to consign any real needs for training and development to the scrap heap. Training and development needs must indeed be dealt with, but a performance appraisal system is not the mechanism for doing so.
If we didn’t have a performance appraisal system, how would people be recognized and rewarded?
On the basis of their contributions to the organization, that much is self evident. No manager worth his or her salt needs help in identifying or recognizing those who contribute to the organization, and the mechanisms for recognizing and rewarding people and their performance are abundant and well-known (e.g., bonuses, plaques, lunches, certificates, etc.). The difficulty lies in equity and in the politics of equality.
The equity difficulty lies in gauging the value of employee contributions so that recognition and rewards are commensurate with those contributions. Unusually noteworthy contributions are readily identified; they stand out, they draw attention to themselves. No performance appraisal system is needed. But what about sustained, long-term contributions of high quality? It seems obvious that an annual performance appraisal system won’t do. Something else is required.
The political issue lies in ensuring that rewards and recognition are consistent with employees’ views as well as management’s views. Employees often have a different picture of who is contributing what to the organization. From their perspective, the real contributors often go unrewarded. One obvious solution here is to make available a certain amount of funding for employee-awarded rewards and recognition.
In any event, performance appraisal systems simply don’t play a significant role in rewards and recognition. Moreover, attempting to make them serve that purpose, coupled with their known punitive qualities, draws attention to their carrot-and-stick nature.
If we didn’t have a performance appraisal system, how would merit raises be determined?
Who says a merit increase is necessary? Automatic annual pay raises inflate the wage and salary structure. A periodic cost-of-living increase might be desirable for retention purposes, but this can be accomplished via incremental increases that have nothing to do with performance or performance appraisals. Sterling performances of a one-time, situation-specific nature are best handled via bonuses and other one-time means, not by ratcheting up the basic pay scales. As mentioned earlier, pay scales should be aligned with the labor market, not driven up automatically each year as the result of merit increases.
It is also the case that annual merit raises are quite modest, even at the extremes of the rating scales. Their motivational value is dubious, and linking them to performance appraisals adds little value.
In short, the answer to the question is that you shouldn’t have merit increases, let alone tie them to performance appraisals.
If we didn’t have a performance appraisal system, how would the organization protect itself against lawsuits for wrongful dismissal or discrimination?
There are two goals here: 1) discouraging lawsuits, and 2) winning them when they occur. There is no evidence indicating that performance appraisal systems discourage lawsuits and quite a bit suggesting that performance appraisal systems backfire in court. Thus, the first purpose is not served and the second is ill served.
Part of the answer to the question is to “keep book” on those employees who are targeted for dismissal, but only on those employees, not the entire employee population.
The best protection against lawsuits for discrimination is not to discriminate and to be able to show that the effects of discrimination are not widespread in the organization. If such effects are demonstrably present, the specifics of an individual case won’t matter much. The organization will likely lose unless the person filing the lawsuit is one who was targeted for dismissal and records support the organization’s position. [ As is always the case in such matters, seek competent legal advice.]
Conclusions
We return then to the central question: What would we do without performance appraisal systems?
We’d do quite nicely, thank you, and at much less cost, both economic and emotional, than is now the case. For any function claimed as supported by performance appraisal systems, there are other, better options available. In short, performance appraisal systems don’t add much value.
Dismantling the performance appraisal system apparatus won’t be an easy task. It has staunch defenders, performance appraisal apparatchiks whose careers are pinned to the continuance of such systems. Such systems are so pervasive and so widely accepted that questioning their value smacks of heresy. Dismantling performance appraisal systems will seem to many as tantamount to opening Pandora’s box. That prospect will make them uncomfortable and reluctant to act. Managers and supervisors who rely on the performance appraisal system to provide them with the carrots to dangle and the sticks to wield in a carrot-and-stick management approach will be particularly alarmed by the prospect of doing away with performance appraisal systems. Yet, it seems clear enough that the costs of performance appraisal systems far outweigh their benefits. In one sense, this is true regardless of their cost, because the purported benefits don’t stand up to scrutiny.
Performance appraisal systems are an anachronism, a vestigial remnant of an era when most work was materials-based and working was a manual activity, one that could be readily observed by a supervisor. In this milieu, management methods and techniques focused on ensuring that employees complied with prefigured work routines. Now, in the era of knowledge work and knowledge workers, where work is information-based and working is a mental activity, work routines are configured by the workers in response to fluid, changing requirements. The task of management in this new world of work is to enable and elicit employee contributions of value to the organization. To continue with a system designed to exact and enforce compliance is folly.
Internet Lists Polled
The Internet discussion list names are given below.
bpr-l@duticai.twi.tudelft.nl (business process reengineering)
change@mindspring.com (change management)
consulting@quality.org (consulting)
hrnet@cornell.edu (human resources)
learning-org@world.std.com (learning organizations)
quality@pucc.princeton.edu (TQM in manufacturing and service companies)
trdev-l@psuvm.psu.edu (training and development)
References Regarding the Concept of Feedback
“Feedback About Feedback” (Fall 1995). Fred Nickols. Human Resources Development Quarterly (Jossey-Bass).
Feedback Thought in Social Science and Systems Theory (1991). George P. Richardson. University of Pennsylvania Press.
Behavior: The Control of Perception (1973). William Powers. Aldine Publishing Company.
Other References Cited
Management (1973). Peter F. Drucker. Harper & Row.
The Age of Discontinuity (1969). Peter F. Drucker. Harper & Row.
Managerial Breakthrough (1963). Joseph M. Juran. McGraw-Hill.
Organizations (1958). James G. March & Herbert A. Simon. McGraw-Hill.
“An Uneasy Look at Performance Appraisals (May-June 1957).” Douglas McGregor. Harvard Business Review.
Retrieved from “http://www.articlesbase.com/human-resources-articles/now-what-what-to-do-after-you-scrap-your-performance-appraisal-system-2331190.html”
(ArticlesBase SC #2331190)
Fred Nickols -
About the Author:
Fred Nickols is a writer, consultant and former executive. Currently, he is the managing partner of Distance Consulting LLC. He may be contacted by email at fred@nickols.us.
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Fred Nickols is a writer, consultant and former executive.
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Home Page > Business > An Introduction to California Real Estate Appraiser
An Introduction to California Real Estate Appraiser
Posted: Feb 04, 2008 |Comments: 0
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An Introduction to California Real Estate Appraiser
By: Mejo
About the Author
Mejo is a Copywriter of Glendora reo appraisals He written many articles in various topics. For more information visit: Indio reo appraisals Contact him at premiersappraisal@gmail.com
(ArticlesBase SC #324555)
Article Source: http://www.articlesbase.com/ – An Introduction to California Real Estate Appraiser
A California real estate appraiser is skilled and capable to offer estimation on worth of a real estate property such as a home or business. A real estate appraiser has a wide understanding of the market and performs a methodical analysis in order to generate a correct appraisal of a property’s value. A qualified California appraiser would forever present the appraisal in a written report that is clear in its meaning. The contents of an appraisal report comprise the probable value of the real estate property, the date, the purpose of the evaluation and the signature of the appraiser. The appraisal should as well make out the address of the property and maps or photographs might also escort the report.
In real estate appraiser California you may get estimated property value in one or more different ways. In a Direct contrast, the appraiser researches what a shopper will get for a comparable property. The appraiser contrasts real property listings and actual sale prices. In a cost approach, the real estate appraiser calculates what the cost of constructing a new structure like the appraised one would be under present market conditions. The real estate appraiser takes land value opinion into consideration. Accumulated reduction is as well taken into the appraiser’s analysis.
The Income method of evaluation considers the highest amount of income a business or other real estate property could generate. The appraiser calculates the working income to assist arrive at the value estimation. Emphasis is placed on what the income could be if the real estate property was directed to its maximum potential. Purposes for hiring an evaluator differ widely. Generally, a real estate appraisal might as well be required when a donation to a charitable trust is deemed tax deductible. Estate or gift tax and bankruptcy are other situations, which might call for an appraiser.
The kind of value necessary by the appraiser is over and over again different for each different appraisal purpose. For instance, the real estate appraiser might calculate fair market value in some conditions and might relate liquidation value in others. Each American state has dissimilar requirements for the real estate appraisal licensing, so it is best to get in touch with your individual state appraisal board or office for specific data about appraisers.
Mejo is a Copywriter of Glendora reo appraisals He written many articles in various topics. For more information visit: Indio reo appraisals Contact him at premiersappraisal@gmail.com
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About the Author:
Mejo is a Copywriter of Glendora reo appraisals He written many articles in various topics. For more information visit: Indio reo appraisals Contact him at premiersappraisal@gmail.com
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Mejo is a Copywriter of Glendora reo appraisals He written many articles in various topics. For more information visit: Indio reo appraisals Contact him at premiersappraisal@gmail.com
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