Advice on entering the Appraisal profession

[J Grant]

I doubt anyone is trying to discourage based on competition since we all live and work in different areas.
CG is better than cert Res but CG will feel more pressure and competition in future years from AI and fee pressure as their numbers expand as more going into field now plan on CG ...but there will still be a living to be made and maybe even a good living for a CG if they become highly qualified (designations) and or a specialty niche. But it takes years to get there which is fine if you have the initial years to live lean while training, though some larger firms looking to train CG offer decent salaries ( appraisal institute has job listings on its site).

A CG can do res of course so if res work is decent they can take that on- with res work on mortgage end getting reduced it is going to squeeze the CG's who rely on it in part . There is also assessor and other work for CG license and some with Res license as well.

I'd say go for it if you really love the appraisal process itself. Since that will be the only thing to sustain you (or anyone in this field ) in down market cycles or tough times. Also imo a person who is tech savvy might have an edge as that might be more in demand in coming years .

 

[Joe Flacco]

It is very difficult in this business to get to the point of being rewarded for quality work. At least on the residential side. "Rewarded for quality work" to me is successfully running a low volume and high fee model. I say 5% or less of appraisers are successfully able to run this model. The other 95% are running a high volume and low/average fee model. You can probably earn six figures in either model. The high volume and low / average fee model doesn't really get rewarded for quality work though. You get rewarded for speed and how competitive your fee is compared to the other 95%.

 

[Joe Flacco]

To get to "rewarded for quality work" means you probably need to be doing high fee kind of work in a low / average fee model until you can get your foot in the door with clients that actually reward for quality work. It is not a easy task getting your foot in the door with those clients. It is not even a easy task doing high fee kind of work in a low / average fee model which means you are basically sacrificing your earnings during this period by doing low volume in the low / average fee model for clients that don't really even care about quality work. To make it happen I think have to be very motivated to get there and maybe even a little bit lucky. Maybe a little bit easier if willing to play politics and kiss some *** to get there.

 

[J Grant]

I’m in a corporation where bad behavior is rampant and am looking into a profession where hard and quality work are rewarded over petty drama and brown nosing

High ethics in appraising (accompanied by competence ) can be rewarded and there are avenues in appraising where that is especially so such as appraising for the IRS or review work for a bank. But there are avenues of appraising where "bad behavior" , is rewarded as well - making a high value to make a deal work for lenders or to make a private client "happy". Choose what kind of appraiser you want to be since the reality is that both survive in this business, despite efforts of checks and balances. Perhaps it is cleaner than some other businesses though...

-is technology like a Zillow equivalent of appraisal a serious threat in the near future?

Yes. How much so, or if those appraisers savvy in technology can work with it to fulfill a need rather than have it displace them is the question.

-does a down market hit the industry hard or does it just slow down typically?

It can be very hard if one is more involved in bank or mortgage work or just a slow down. It can be a cyclical business of so busy working 24/7 to so slow wondering whether to pack it in. Though certain types of work and clients are more immune to that.

 

[DaveSmith1]

Thanks for all of your input and advice. It definitely helps to hear different viewpoints from experienced pros. I got some thinking to do as I’d like to be financially successful in a prominent profession that isn’t phased out or won’t take me several years to make six figures.

It sounds like it’s mainly location and appraisal niche based when it comes to the income. Maybe niches like mines, oil fields, or power plants would be highly profitable (six figures once certified) out of the gates?

Any other info. is highly appreciated.

Dave

 

[Deleted member 128537]

Thanks for all of your input and advice. It definitely helps to hear different viewpoints from experienced pros. I got some thinking to do as I’d like to be financially successful in a prominent profession that isn’t phased out or won’t take me several years to make six figures.

It sounds like it’s mainly location and appraisal niche based when it comes to the income. Maybe niches like mines, oil fields, or power plants would be highly profitable (six figures once certified) out of the gates?

Any other info. is highly appreciated.

Dave

Practically no one makes 6 figures out of the gate. That’s true for just about any profession. It takes years to build an appraisal practice. And it’s not just knowing how to do appraisals. It’s also about marketing yourself and being an entrepreneur. Many good appraisers forget they won’t be knocking down your doors. You have to build a clientele over the years. And also if you rely on lender work you will definitely not make it. Right now over half of my work is private work. And private work takes marketing.

 

[devin]

Practically no one makes 6 figures out of the gate. That’s true for just about any profession. It takes years to build an appraisal practice. And it’s not just knowing how to do appraisals. It’s also about marketing yourself and being an entrepreneur. Many good appraisers forget they won’t be knocking down your doors. You have to build a clientele over the years. And also if you rely on lender work you will definitely not make it. Right now over half of my work is private work. And private work takes marketing.

Give us some pointers on how you market to get private work. Thanks

 

[George Hatch]

100% of my work comes in via referral. I've never solicited a single client. So far.

 

[devin]

100% of my work comes in via referral. I've never solicited a single client. So far.

So it's not really marketing

 

[gregb]

So it's not really marketing

Marketing occurs with every report completed and every post online.