Advice For A Newbie

[ShellMitch5]

Are you looking to go residential or commercial? If commercial, I can help.

I'm open to either! Now if only I could figure out how to contact you.... again.... new to this.

 

[spittman]

The licensing board in my state publishes a public list with names, email & phone numbers. I didn't see one for your state, but doesn't hurt to call them up and ask if a list is available by county.

 

[StayPuft]

If I were you I would spend many hours scouring this forum for answers previously given to others with the same question. Also search this forum for the term "appraiser shortage" and read the comments thoroughly.
Hopefully those comments and information will give you clarity about what you're getting into before making the commitment.
Good luck to you.

I've read up on what seems to be a shortage of appraisers who are willing to work for low-paying AMC's which seem to be mostly on the residential side, if I'm not mistaken.

What's the outlook for commercial appraisers? Do you think this will still be money in it 10,20, or 30 years from now?

 

[bnmappraisal]

What's the outlook for commercial appraisers? Do you think this will still be money in it 10,20, or 30 years from now?

Yes, and even for RES appraisers

But it most likely will not be the same as it is now

Personally, one of the reasons I became an appraiser and not an agent was because .. people will always want to know "what's my house worth?"

 

[Restrain]

The ‘appraiser shortage’ Is being pushed by lenders to bypass appraisers. I have been in the business since 1970, and if I was starting now, I wouldn’t go into appraising. Stay in real estate, go into residential and commercial property management or related business. In appraising, you cannot develop a business that has any residual (sellable) value. All you have in appraising is your name and your clients, which can disappear at any time. Couple that with the attempts to do automated valuations for lending and a push to do commercial valuations using accountants analyses of cash flows, not a good future.

 

[Sid Holderly]

Look for a retiring independent single office appraiser for a business to take over in a couple of years or a larger active appraisal business with several appraisers and a wide array of job types. You still neede another income before getting established. I starved for 2 years at a low percentage draw for an office that did many types of work before I could go on my own.

At 65 now I am more selective of the work I take on. In a few years I might think about training someone, might!

 

[StayPuft]

The ‘appraiser shortage’ Is being pushed by lenders to bypass appraisers. I have been in the business since 1970, and if I was starting now, I wouldn’t go into appraising. Stay in real estate, go into residential and commercial property management or related business. In appraising, you cannot develop a business that has any residual (sellable) value. All you have in appraising is your name and your clients, which can disappear at any time. Couple that with the attempts to do automated valuations for lending and a push to do commercial valuations using accountants analyses of cash flows, not a good future.

I've been reading up automated valuations and I can definitely see this as being a threat to residential appraisers, but this is the first time that I have heard someone mention the use of accounting analysis of cash flow on the commercial side.

Is this as big of a threat as automated valuations? Wouldn't it still be in the lenders best interest for someone to measure and inspect the property and to see its condition, equipment, etc. as well as any visual indicators that may affect the property value?

Any others have a different opinion as far as outlook?

 

[Deleted member 152047]

The complexity and variety of commercial properties will insulate the profession from obsolescence. I know we have been touting this for decades, but the median age of AI members is 62. While many appraisers will work until they die at their desks, those same appraisers will not be working on highly complex assets. The older guys will also not tend to locate themselves in high-pressure lines of business. We see a shortage in certain areas of the commercial world, especially in specialties and complex assets. We lose more appraisers every year (both commercial and residential) than are getting into the business. The high barriers to entry will benefit those that are established and new entrants. Think of this....the median age in 10 years could be near 70, that is crazy!!

I am bullish on commercial appraisal (at least for the rest of my working life....hopefully less than 30 years). Who knows where technology will put us in the future? But increased regulation, while a pain in the ***, will also play a major part in maintaining the relevance of the profession.

 

[ucbruin]

I've been reading up automated valuations and I can definitely see this as being a threat to residential appraisers, but this is the first time that I have heard someone mention the use of accounting analysis of cash flow on the commercial side.

Is this as big of a threat as automated valuations? Wouldn't it still be in the lenders best interest for someone to measure and inspect the property and to see its condition, equipment, etc. as well as any visual indicators that may affect the property value?

Any others have a different opinion as far as outlook?

Interesting question and I've no answer....

But I do have a comment....
During the past couple of real estate crashes....
Which type of property gets most of the blame???
Residential or commercial???

It could be that being CR I don't notice articles that focus on commercial....
So, it seems to me that residential is considered the usual suspect....
I don't see why commercial appraising will be immune to technological advances....

 

[Bob Ipock]

The ‘appraiser shortage’ Is being pushed by lenders to bypass appraisers. I have been in the business since 1970, and if I was starting now, I wouldn’t go into appraising. Stay in real estate, go into residential and commercial property management or related business. In appraising, you cannot develop a business that has any residual (sellable) value. All you have in appraising is your name and your clients, which can disappear at any time. Couple that with the attempts to do automated valuations for lending and a push to do commercial valuations using accountants analyses of cash flows, not a good future.

Figure your expenses along with income. Likely nobody will be paying for health insurance. Then you have
MLS dues, Board of Realtors fees, computers, very high car expenses, no paid vacation, or sick leave. As a general rule you will eat what you kill.

Now comes all the comments about all the money they are making and the firs they work for etc. By far, the typical appraiser works on their on as a rule works from home. This you yo be a great business but it ain't what it used to be. Many appraiser nation wide are very, very slow due to the collapse of the re-finance market.

Before you spend money on classes....find a supervisor. Call 10 appraisers from your area and get their input on hiring a trainee. The classes will do you no good if you van't find a supervisor.