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What Industries Will Fail MSA Consistently?

Six Sigma – iSixSigma Forums General Forums Methodology What Industries Will Fail MSA Consistently?

Viewing 9 posts - 1 through 9 (of 9 total)
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  • #54177

    Joel B. Henry
    Participant

    I am trying to pass an MSA on residential property appraisal review. We cannot overcome the subjectivity. We are wondering if this is even a realistic endevour to continue.

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    #194051

    Stan Mikel
    Member

    Yes, give up. The accuracy of an appraisal probably doesn’t matter anyway. You should just ask the customer what number they need to get their loan.

    Seriously though, every visual inspection is subjective. The solution is training and even maybe deciding who cannot do any further appraisals.

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    #194053

    Chris Seider
    Participant

    What aspect of your MSA are you failing? I’m assuming this is a continuous variable you are measuring.

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    #194054

    hbgb b^2
    Guest

    I agree with Stan Mikel

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    #194063

    Joel B. Henry
    Participant

    LOL, Mr. Mikel…that would have been circa 2006…
    Mr. Seider,
    I am told this is a discrete MSA. I am far from experienced with Six Sigma and MSAs, so I appreciate your patience. We are attempting to measure consistency and reproducibility within the MSA. Measuring the Reviewers ability to provide the same answer as baseline and with each other.

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    #194066

    marcy troy
    Guest

    My question is: Are the appraisers in your study all appraising the same home? Or are they appraising different homes? My own home was appraised a year apart by two different people for many tens of thousands of dollars difference. There are so many variables the appraiser has no control over — neighborhood comps, for example.

    I’m no appraisal expert,but I imagine they all have a few pinpoint areas they must examine that take precedence over other items: updated kitchens, bathrooms, no. of bedrooms, etc. I would try to break it down that way and see how Appraiser A grades an updated kitchen in a 3-bed, 3-bath house vs. how Appraiser B judges the same type of layout.

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    #194067

    Jeff Marth
    Participant

    Yes, this is a realisic endevour. I have gone through a couple MSAs, and mentored people through severa, that are similar to this. Each time I find that what people think is subjective, isn’t. It’s a matter of finding out what you can quantify or set into distinct ratings with clear descriptions.

    Marcy Troy’s comments above are a great start. Break things down into what items factor into the final appraisel result, then set a standard by which everyone should evaluate. Prove the standard valid, then train everyone on it. You’ll find appraisers are far more consistent with each other when given something to evaluate against.

    There may be a lot of variables to take into account, but you can build a framework for them to use. Don’t let anyone tell you it can’t be done!

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    #194069

    Chris Seider
    Participant

    @joelbhenry

    No worries. I think you are trying to see if they give the same appraisal in absolute dollars. You need to get an idea of how much variation the appraisers have for the same houses. Pick 10 houses, have them evaluate the houses twice each (not in same week) and then there is a technique to evaluate how much variation compared to an accepted tolerance.

    Good luck

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    #194140

    MBBinWI
    Participant

    @joelbhenry – the other thing that you have to take into account is that appraisals are time dependant. As one poster described, an appraisal just a year apart can (and probably should) be different, even if done by the same appraiser. In looking at the MSA of appraisers, they must use the same context (interest rates, time on market, local inventory level, etc.), not merely the same house.

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