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How Precise Do You Need To Be?

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reviewbe

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Oct 4, 2016
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Certified General Appraiser
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California
A recent report came in with a value of $1,379,600. Myself, I probably would have round it up to $1,380,000, but maybe that would be too high?
 

Terrel L. Shields

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Arkansas
google
"There are three rules on determining how many significant figures are in a number: Non-zero digits are always significant. Any zeros between two significant digits are significant. A final zero or trailing zeros in the decimal portion ONLY are significant."​
 

Mark K

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Indiana
Accurate to within $100; that appraiser is really good, or really ignorant. You chose.

I'd round to $1.375M or $1.4M. Rounding to 1.38M implies an accuracy to within $10K or less than 1%. I'd rather round to $25K at that value level unless there is a lot of good, reliable data suggesting otherwise.

OTOH, maybe his adjusted range was $1,379,500 to $1,379,700. $1,379,600 makes perfect sense. :)
 

residentialguy

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Mar 24, 2009
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Certified Residential Appraiser
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Minnesota
I'd rather round to $25K at that value level unless there is a lot of good, reliable data suggesting otherwise.
Yup. I wouldn't round my adjustments lower than that, much less the final value.
OTOH, maybe his adjusted range was $1,379,500 to $1,379,700. $1,379,600 makes perfect sense.
Yeah, right
 

Michigan CG

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Nov 1, 2006
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Certified General Appraiser
State
Michigan
A recent report came in with a value of $1,379,600. Myself, I probably would have round it up to $1,380,000, but maybe that would be too high?

But his fee and turn time were the lowest.

Idiot.
 

AMF13

Elite Member
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Jan 24, 2002
Professional Status
Certified Residential Appraiser
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California
Meticulous and precise!
You gotta be a killer queen, dynamite with a laser beam, guaranteed to blow your mind! :D
 

J Grant

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Joined
Dec 9, 2003
Professional Status
Certified Residential Appraiser
State
Florida
A recent report came in with a value of $1,379,600. Myself, I probably would have round it up to $1,380,000, but maybe that would be too high?

That's pretty crazy- sounds like a software spit out that exact value and he put it in, or matched a SC price. Most appraisers round up to the 1,380,000 or down to the 1, 379,000
 

Don Clark

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Jan 17, 2002
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Certified Residential Appraiser
State
Virginia
A recent report came in with a value of $1,379,600. Myself, I probably would have round it up to $1,380,000, but maybe that would be too high?

No one, myself included, is that good at forming an opinion of value. There are rules for rounding of value same as there are for measurements. Now, that said, if you are taking all the adjusted sales prices, and adding them together, then dividing by the number of comparables(which is the wrong way to do a eeconcilliation), then you can get a number like that.
 
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