When Published Reports Aren't Enough

Help for Professional Property Assessors: Assessment Reporting

The Problem

You're writing the annual real property assessment report that will explain how the current real estate market has affected assessments.  This can be challenging when the real estate market has been typical, but what's an assessor to do in this market?  Most published reports either aren't current enough (who would have thought that a report released no more than 90 days or 30 days ago would be ancient history?) or not relevant to your market.  For example many parts of Virginia have had relatively little impact from the foreclosure crisis, but the city I'll be reporting on is located in Prince William County which experienced the highest rate of foreclosures in all of Virginia during 2008.

The Solution

Risa Sacks, of Risa Sacks Information Services (www.RisaSacks.com), recommends a little used technology that has been with those of us in the assessment field for years, the telephone.  If you've been in the field for a while you remember gathering precious sales and income and expense information, as well and other critical assessment data, by telephone.  Most of the suggestions that follow came from ideas put forth by Ms. Sacks and appeared in a February 2009 InfoTip from Bates Information Services (www.BatesInfo.com).  I've adopted her recommendations here to help professional property assessors.

Let's assume that you have the latest report or forecast about the real estate market or segment that you want to report on but it's from 2008 and the landscape has changed so much that even it wouldn't be recognized today.

• Call the authors of the report, the analysts following the company, the editors of the trade journal, or speakers at the major conference.  Tell them you’re calling them because they are top experts in this area, and while no one really knows what’s going on, if anyone has a good idea, it’s them!

(TIP: If you bought a report, or actually heard a presentation, milk that for all it’s worth. “I read your excellent report…..”)

• They may provide you with a more up-to-date article, PowerPoint presentation, editorial, etc. – even one that’s only in draft version.  They may also be willing to spend time providing you with their own best insights on the current conditions/issues and their best predictions on what will happen and why.

You need to hit the bulls-eye.  You find information that was somewhat close, but you still couldn't find the exact answer to your specific question.  For example, you find figures for an aggregate of commercial properties in general, but you need information on major office properties.

• Call the source whose information came the closest to what you need – maybe the appraiser or researcher who conducted the study, the journalist who wrote the article, or the association that conducted the survey.

• Mention why you are calling him (“Your article was just in the area I’m researching…”) and what your needs are (“I wondered if you know what’s going on in this particular town within the region?”).  Ask him if he has the information you need, or who else he thinks might be able to help.  Often the numbers you want are in the raw data – I’ve had people willing to rerun their data to provide me with just the subset I need.  Many facts don’t make it into the article, but the reporter or researcher has them at their fingertips.

(TIP: With reporters, always ask first if they’re on deadline – it’s only polite, and they may be so pleased that you asked that they’ll give you a few extra minutes of their time, or provide a time when you can call back.)

Resolve the conflicts.  Great... you've got information -- too much, in fact! -- and none of the sources agree.  Experts contradict each other and figures don’t mesh.

• Call the incongruent sources and ask them how they reached their conclusions.  Ask them directly about the conflicting information or views of others.  Why do they think the differences exist?  Call the acknowledged gurus on the topic to see how each of the other ‘experts’ are viewed in their field.

(TIP: The expert you’re talking to at any moment is, in your view, the definitive source – you’re just trying to understand the misconceptions of others...)

Get the nuances.  You have the facts and figures, but no 'soft' information to help you understand how people feel about this.  Are they enthusiastic, cautious, panicked?  [In assessment reporting, this can make the difference between a dry, fact-filled, sterile report and one that informs citizens and public officials of the current situation in terms that are understandable and credible.]

• Call the people quoted in articles or interviewed in broadcasts, the members of the associations, even consumers.  Tell them you really are interested in their opinions, how they feel, and how they think others feel.

• You’ll get information from what they are willing to say, what they are not willing to say, and even their tone of voice.

(TIP: Offer anonymity if you can – people may be willing to speak more freely if they know nothing they say is for attribution.  And if you promise anonymity, follow through and protect their identities.)

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