Non-negative, Non-doom & gloom honest request for help building this business in 2024

[RnwtrAppSrvc]

**Disclaimer***
Sometimes finding advise on here can be a little deflating. I get it, the industry's changing. We have to adapt. This whole "if you're under 55 and new to this, you better hit the road running!!!" gets so damn old. Please, for the Love of God, we get it. I don't think anyone that gets on this website is looking to just throw their hands up and act like its not worth their time.

I've seen so many posts asking for help as a new appraiser that seem like I could have typed them myself. So many of us are struggling to find work in this real estate economy, all while more banks sign up with AMC's everyday and farm out bid requests like its the best thing since sliced bread. New challenges in the industry will set the stage, and we have to learn how to overcome them to become successful.

So for those that actually want to discuss the wins and losses, what works and doesn't, please read on and feel free to contribute! If you want to respond to this disclaimer with your opinion of the industry, it will be ignored and/or deleted.

*this is NOT directed at anyone in particular*
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Now that we have that out of the way, lets get down to business.

I, like many of you, have spent countless hours signing up for AMC's, calling and visiting banks, handing out business cards to realtors & brokers, and so much more. Where/who are you having success with getting continuous business from? I'm going to list the AMC's below that I've had success getting orders through as of 06/05/2024.

-Class Valuation
-New American Funding
-Nadlan Valuation Inc
-ACT appraisals
-UWM appraisals

**I've signed up (and been approved) to many other AMC's, but these are the only ones that are sending me work.**

My previous supervisor barely has enough work to keep himself busy. Are you able to still get work from your supervisor?

What banks/AMC's are you having success with, and where are you located?

How are you having success signing up with local banks in your area? How did you approach them?

What other avenues are you exploring to expand your marketing efforts?

How are you approaching people like divorce lawyers, credit unions, estate sale company's etc?

1 recent marketing win I can share is going onto a private facebook page for realtors in my area and asking who their favorite local lenders are that they've worked with over the past year. I'm currently in the process of reaching out to these realtors that responded to share my contact info and contacting the lenders they mentioned.

Another win I've had success with is offering a home measuring service to realtors and provide floorplan sketches for them. "ANSI standard compliant, interior measurements, completed by a CRA". If you want to see an example, shoot me a message. This is a good way to stay in front of your local realtors and supplement a little income too.

Please feel free to share anything that you've had success with recently!! I hope this thread can help us throw some ideas around we can take home to our own markets.

Thank you! Lets help each other out!

 

[Terrel L. Shields]

I, like many of you, have spent countless hours signing up for AMC's, calling and visiting banks, handing out business cards to realtors & brokers, and so much more. Where/who are you having success with getting continuous business from?

Perhaps start by focusing on the non-lending side. And think about doing more rural work and the requirements there. Outbuildings have value more often than not so learn to value them. Focus on the cost approach for both support for the sales approach and as a method to extract items individually from comps.

How are you having success signing up with local banks in your area? How did you approach them?

In person. Ask a lender who they use for an AMC or 'handle' it themselves. Find out how to get on their vendors list or if you can. Focus on small community or regional banks - maybe only 1 or 2 branches. Try to search their websites and learn the names of the VP of lending and or President.

How are you approaching people like divorce lawyers, credit unions, estate sale company's etc?

Again, in person AND for estate work, remember there are CPAs, Tax Attorney's and even local attorneys who handle estates. Sometimes they order the appraisal but often as not they simply tell the family to do so. So, you get Working Real Estate or another magazine because you are an appraiser? Well, attorney's and CPAs have local or state magazines. Often these magazines take advertising sometimes in the form of a business card display. Usually from $100-500 depending upon circulation per year. Find them. Online or paper copies. And make sure to link to your website. And create a very good website with a photo gallery - perhaps showing how and what you do.

If you want estate work, then learn to write a NARRATIVE and learn the difference in a GIFTING appraisal and an appraisal for a date of death step-up basis. Be ready to do complex properties. Work to get your CG...even if residential work is your focus. Limiting yourself to residential is cutting out half or more of your opportunities.

Another win I've had success with is offering a home measuring service to realtors and provide floorplan sketches for them.

Get a commercial drone license and a decent drone and take pictures as part of the service. Offer it free with the sketching for first time users. Charge modestly since Realtors are also hurting for income. The wider your users the more exposure you get by referrals. You don't want them to respond with "They do a good job, but boy are they expensive"

 

[Vermonter]

Perhaps start by focusing on the non-lending side. And think about doing more rural work and the requirements there.

Agree and agree.

I figured out pretty early on that most appraisers didn't want to do rural work so that has been my target ever since. Fees are better, work is more interesting and it's easier to get established.

Most of the non-lending work I do is estate and most find me thru my basic website. Target an area and with a little SEO you can wind up high in the rankings. Make nice with brokers/agents in the area and you will get referral private work.

 

[Tim Hicks (Texas)]

You will find that many appraisers will not discuss their client list on a public web site that any competing appraiser can read. AMCs are a different story. Anybody can sign up for those. I have no AMCs to offer. Try Mercury Network and Appraisalport.

 

[Digger88]

Work where other appraisers aren't if you can. Tell these AMCs you sign up with you do rural counties if available if you can get your foot in the door and drive your butt off until they can depend on you then maybe they'll start sending work nearer to where you live.

 

[Tim Hicks (Texas)]

How about this? What are the major tract home builders in your area? They all use their own mortgage companies and pay incentives to use their mortgage companies. Find out those mortgage companies and cold call them in person. Thye typically have 1-2 appraisers doing all their appraisals for a gold mine of work. Volunteer to do their outlying appraisals that their "preferred appraisers" ask to charge more at a fee that suits you, but does not hurt your profit line to get your foot in the door.

 

[Fernando]

You will find that many appraisers will not discuss their client list on a public web site that any competing appraiser can read. AMCs are a different story. Anybody can sign up for those. I have no AMCs to offer. Try Mercury Network and Appraisalport.

That's true, I wouldn't put my favorite clients on public web. I know which ones pay well and which are cheapskates.
In the past even with mortgage brokers, if you have 3-4 good clients, they usually supply you all the work you need.
Right now is a different economic situation in which all lenders have drop in their loans.

During the Great Recession and during the dire changes from HVCC (terrible timing for appraisers), my work load dropped and I was desperate.
I read on AF since I wasn't busy.
Somehow I found this one lender in which orders were sent out and bad part was first one to grab it, got it.
I heard there were software that automatically grabs it. It was hard for me to get them since I wasn't techie though I heard you could buy such software.
Eventually lender made it more difficult (showing I'm not a Robot) and I was able to get them.
The rest was history. Fernando was able to grab (faster than other appraisers and tricks in getting them) so many orders as fruitful in 2021.
While other appraisers on AF were complaining about work, Fernando was busy and didn't comment on his good fortune.
Thus, somewhere today, some appraisers out there are still making money (like Terrel) who found a niche or strategy.

 

[J Grant]

Join the Appraisal Institute and get an SRA. That is the ticket to standing out and getting private work and on better lender direct lists. I did not get one, but if I were starting out now, I would. Litigation and trust accounts and private wealth divisions of the banks with high-value orders - getting an SRA and the contacts and referrals from the AI is the ticket out of AMC work.

 

[Joe Flacco]

Cold calling and walking into places unannounced doesn't work. You need referrals and recommendations.

 

[George Hatch]

Join the Appraisal Institute and get an SRA. That is the ticket to standing out and getting private work and on better lender direct lists. I did not get one, but if I were starting out now, I would. Litigation and trust accounts and private wealth divisions of the banks with high-value orders - getting an SRA and the contacts and referrals from the AI is the ticket out of AMC work.

If I were starting out right now I'd consider joining the AI and get really active in the chapter meetings. Take notes when there's a speaker and just generally work towards establishing a reputation. You don't want to be a leach or come across as an opportunist but you do want to show that you're serious about your career progression. Someone there will likely take notice and it will increase your exposure to whatever opportunities there are out there.

The other thing is that when you do get an assignment you will come out ahead in the long run by providing excellent quality and service regardless if you're happy with the fee or not. It's the same thing: you're looking to build a reputation for solving the more difficult appraisal problems, including assignments that other appraisers are actively avoiding because they don't pay as well as the simple assignments. Those difficult assignments will not be profitable on the basis of the fee, but doing right by them will be valuable in cultivating your professional reputation.

Lastly, appraisers are notorious as a group for their anti-social and anti-authoritarian tendencies. Most of us want to work alone because we don't work well with others. And sure, it takes a thick skin and a healthy dose of ego to stand firm when you need to stand firm. But you don't need to take it out on the clerks who work for the AMC or some reviewer because for them its mostly just business. Not personal. It never pays to lose your frame when you're interacting with your clients.