Moore Precision Cost Saves You Money and Increases Accuracy
About Moore Precision Cost
J WAYNE MOORE PHD, LLC, doing business as MOORE PRECISION COST, is the limited liability company founded by Wayne Moore in 2008 following his more than three decades in mass appraisal. He had directly or indirectly been involved in the implementation of computer assisted mass appraisal (CAMA) systems in more than 300 assessing jurisdictions in North America. He founded ProVal Corporation, which was acquired by a public company in 1999. Although the ProVal CAMA software is still widely used by assessing jurisdictions because of its in-depth appraisal functionality, Wayne no longer has any financial interest in the software or the company that now holds the rights to the software.
Wayne’s undergraduate degree is in Economics, he holds a master’s degree in Systems Engineering, and his PhD is in Business Administration with a specialty in property taxation. He does independent research and writing, having received three IAAO Technical Essay Awards for his published articles in the past 10 years. He provides assessment advisory services and has focused his more recent research on improving and modernizing the methods for estimating construction costs that are the foundation of the cost approach to value, an important subject that has not received sufficient attention in the past. As a result of this research and the industry need for modern, accurate, affordable cost models and cost tables for use with the CAMA software being offered by all vendors, Wayne established Moore Precision Cost as a business of J Wayne Moore PHD, LLC to provide cost models and tables specifically designed for use in mass appraisal.
During the past three decades much attention has been directed toward improvement of value estimating accuracy using regression-based automated valuation models (AVMs) with little attention devoted to cost models and their underlying assumptions. When cost manuals were first developed 30 to 80 years ago, building design, materials, and building codes were different from what is typically found in modern construction. One of the important tasks undertaken in the development of these new cost tables was the study and realignment of underlying cost model assumptions to conform to today’s building designs and materials.
Even with all the attention and hype that has surrounded the potential advantages of using regression-based automated valuation models (AVMs), market-adjusted cost remains the most widely used mass appraisal methodology by assessing jurisdictions. Published research has provided evidence that the market-adjusted cost method is capable of producing value estimates that are statistically equivalent to those obtained using regression-based AVMs. Published research has also demonstrated that adding parcel x-y coordinates and using geographically weighted regression will significantly improve market value estimates, but the same research also found that the best estimates were obtained when replacement cost new (RCN) and RCN less depreciation (RCNLD) were added as variables in the regression model. Hence, the use of modern, accurate construction cost models and cost tables such as those provided by Moore Precision Cost as the foundation of the appraisal process always enhances market value estimating results.