Staff position vs. Independent Appraiser

[Doug in NC]

Was just reading an old thread about staff versus independent appraiser careers. I would welcome some stability of income and volume from a staff position. I once applied for a staff position at a big bank and got invited to interview for the position, but I declined after learning more about what would be expected from other staff appraisers. Admittedly, the big turnoff was the idea of being expected to churn out something like 10+ appraisals per week. I also have heard some of these staff appraisers make over 6 figures, but I believe that was pay based on completing even greater than the expected quota. I agree with what others have stated about the complexity of completing appraisals in the current appraisal environment, and find it very difficult to imagine even completing 8 appraisals per week on a consistent basis. Back in the early 2000s I did turn out sometimes up to 12 appraisals in a week, but that was not sustained, and completing reports was much easier back then (we didn't have the MC form, form and reporting requirements were much simpler, could use comps 12 months old, didn't have to worry about depreciating markets, didn't need interior photos, and the de minimus level was $0 so appraisals were ordered on even the simplest properties).

So many factors to consider when taking a staff appraisal job. Can I give up my freedom of working when I want? A solid salary and benefits would be great, with paid vacation, but am I willing to essentially work for much less per report? Then again, how do I like it when I go for two weeks without an order and the accompanying lack of income as an independent.

 

[Charlie]

Was just reading an old thread about staff versus independent appraiser careers. I would welcome some stability of income and volume from a staff position. I once applied for a staff position at a big bank and got invited to interview for the position, but I declined after learning more about what would be expected from other staff appraisers. Admittedly, the big turnoff was the idea of being expected to churn out something like 10+ appraisals per week. I also have heard some of these staff appraisers make over 6 figures, but I believe that was pay based on completing even greater than the expected quota. I agree with what others have stated about the complexity of completing appraisals in the current appraisal environment, and find it very difficult to imagine even completing 8 appraisals per week on a consistent basis. Back in the early 2000s I did turn out sometimes up to 12 appraisals in a week, but that was not sustained, and completing reports was much easier back then (we didn't have the MC form, form and reporting requirements were much simpler, could use comps 12 months old, didn't have to worry about depreciating markets, didn't need interior photos, and the de minimus level was $0 so appraisals were ordered on even the simplest properties).

So many factors to consider when taking a staff appraisal job. Can I give up my freedom of working when I want? A solid salary and benefits would be great, with paid vacation, but am I willing to essentially work for much less per report? Then again, how do I like it when I go for two weeks without an order and the accompanying lack of income as an independent.

It sounds like you have a good idea regarding what the pros and cons are and what the reality of the situation is. The current production quotas for most staff appraiser positions available today are not realistic. The hiring companies generally fail to recognize or acknowledge the increasing challenges and requirements of appraising in today's market and the quotas are expected to be met through "technology enhancements" or other flowery language. The reality is you will be pushed to the limit and you will find out quickly if you are cut out for a staff position or not. The benefit that some staffers have to pick and choose orders usually makes a huge difference in how much production can be accomplished. Unfortunately the stability that most appraisers seek when taking these types of jobs does not exist as banks and lenders have shown a pattern of cutting these types of positions quickly during lean times.

That being said, I used to be a staffer and it worked out well for me in many ways. I was pushed hard on production and had to take the complex appraisals and reviews that the company did not trust to assign out to vendors or less experienced staff. Eventually I was promoted to management after proving my ability to meet aggressive production and turnaround goals under difficult conditions. Although I was laid off during the financial crisis, the experience looks good on my resume and the connections I made throughout the company were extremely valuable. Many were let go at the same time as me, went to other companies, and helped me to gain entry to sign up as a vendor. FWIW, I do not like the long-term growth prospects for either staff or independent residential appraisers. I have worked hard to learn new non-appraisal related skills as a back up plan and would strongly suggest for all residential appraisers without a back up plan to create one. Good luck to you!

 

[Hank Outlaw]

It sounds like you have a good idea regarding what the pros and cons are and what the reality of the situation is. The current production quotas for most staff appraiser positions available today are not realistic. The hiring company's generally fail to recognize or acknowledge the increasing challenges and requirements of appraising in today's market and the quotas are expected to be met through "technology enhancements" or other flowery language. The reality is you will be pushed to the limit and you will find out quickly if you are cut out for a staff position or not. The benefit that some staffers have to pick and choose orders usually makes a huge difference in how much production can be accomplished. Unfortunately the stability that most appraisers seek when taking these types of jobs does not exist as banks and lenders have shown a pattern of cutting these types of positions quickly during lean times.

That being said, I used to be a staffer and it worked out well for me in many ways. I was pushed hard on production and had to take the complex appraisals and reviews that the company did not trust to assign out to vendors or less experienced staff. Eventually I was promoted to management after proving my ability to meet aggressive production and turnaround goals under difficult conditions. Although I was laid off eventually, the experience looks good on my resume and the connections I made throughout the company were extremely valuable. Many were let go at the same time as me, went to other companies, and helped me to gain entry to sign up as a vendor. FWIW, I do not like the long-term growth prospects for either staff or independent residential appraisers. I have worked hard to learn new non-appraisal related skills as a back up plan and would strongly suggest for all residential appraisers without a back up plan to create one. Good luck to you!

Care to share? I'm thinking along the same lines, and not ready for a fast-food or auto sales job!

I actually enjoy appraising overall, and don't mind the time some assignments take, but its frustrating that the typical lender client only cares about the fee and turnaround time.

 

[Charlie]

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Care to share? I'm thinking along the same lines, and not ready for a fast-food or auto sales job!

I actually enjoy appraising overall, and don't mind the time some assignments take, but its frustrating that the typical lender client only cares about the fee and turnaround time.

Sure. I went back to school part time when I got laid off and should have a CPA and masters in accounting degree soon. The accounting profession is going through many of the same challenges that we are and staff positions with the big accounting companies can be a production nightmare.

I still enjoy appraising also! I have been lucky enough to stay busy every day since I started about 12 years ago. I am finding that for me, with the 12+ years of appraisal experience, including time as a manager with a bank, plus my new designation, that the appraisal related opportunites are better at this time than the accounting related opportunities. That may change though as I keep gaining accounting experience.

I am very happy to have gone through the experience no matter what the outcome and I know I can always get a job if the appraisal biz dries up. There are many similarites in the academics of the 2 professions. I learned new business skills that help my appraisal career and my appraisal education gave me an advantage in many accounting subjects (regression analysis, depreciation, time value of money, the list goes on and on). Good luck!

 

[Walter Kirk]

Staff appraisers do complete more reports however they have greater resources than independent appraisers do.
In many cases the geographic area that they cover is smaller, they have access to other appraisal reports and comps in the possession of their employer. I also believe that staff appraisers keep the cookie cutter assignments for themselves and send the tough ones to outside appraisers.

Of course they don't have to deal with clients, pat the bills, fix the office machines and do all of the other little things that independents do. When you consider that along with a regular paycheck, fringe benefits,vacations and legal holidays off it ain't a bad gig.

 

[So Cal RealEstate]

I have been a staff appraiser for 10 1/2 months...It is a love hate relationship...Steady income will be out of debt by the end of the year then deciding on my next move!

 

[Charlie]

Staff appraisers do complete more reports however they have greater resources than independent appraisers do.
In many cases the geographic area that they cover is smaller, they have access to other appraisal reports and comps in the possession of their employer. I also believe that staff appraisers keep the cookie cutter assignments for themselves and send the tough ones to outside appraisers.

Of course they don't have to deal with clients, pat the bills, fix the office machines and do all of the other little things that independents do. When you consider that along with a regular paycheck, fringe benefits,vacations and legal holidays off it ain't a bad gig.

Of course staff appraisers will keep cookie cutter assignments for themselves if that is an option. That is not always the case. I would suggest for those interviewing for these types of jobs to push this issue and find out if this benefit is available.

Regarding staff appraisers having access to other appraisal reports and comps - are those really time savers? That sounds like some of the flowery language that these companies use to convince someone that the production quota is somehow more realistic that it would be for an independent. It would just take me extra time to read another appraisal report and it is likely either not credible or too dated to be relevant. And my MLS has plenty of comps...additional data sources will just take up extra time. Staffers do have to deal with clients and have extra things to do that independents do not (filling out time sheets, filling out expense reports, meetings, compliance trainings, performance reviews, etc...). Cherry picking orders seems to usually be the only real time saver. Still I agree that staff positions are a good gig for some. It was for me.

 

[Walter Kirk]

Regarding staff appraisers having access to other appraisal reports and comps - are those really time savers?

Files of appraisal reports and comps certainly can be time savers. I once worked for an appraiser who had thousands of appraisal reports for a three county area. They were a great source for neighborhood descriptions, comp selection and in many cases detailed descriptions of the subject property or comparable properties

 

[Tim The Enchanter]

I was staff at a big bank for almost 6 years and got laid off along with almost the whole department in early 2009. Before that I worked with 4-5 other appraisal companies, and since then I'm a 1 man band appraiser.

I miss having an office with other appraisers in it. I miss the company car, the paid time off / vacation, and paid holidays. The annual company party, the mostly steady work flow. Miss the matching contributions to the 401K.

I don't miss office politics, meetings, or performance reviews. The last was 7 legal pages, iirc. Required me to answer a bunch of questions and state performance goals and yadda. Don't miss the pressure to produce 10 appraisals a week. Don't even miss that I had the smallest territory ever. Don't miss the HR Dept or the online time sheets and other rigamarole.

I'm glad the bank pushed us out the front door, but said go around back we have contract work. It was a great job overall, best I ever had. Until the one I have now.

Not that I would rule out a staff job again, but the pressure would have to be less, and I don't see that happening, just the opposite, and they don't want to pay what I see as C&R, as far as I've seen.

 

[Tom Woolford]

If I was 15 years younger, I'd grab it in a heartbeat. But since my heartbeats aren't quite what they used to be, I'm satisfied with a lower volume, and more free time.