Advice for a career shift into Commercial Appraising

[sordini]

Hi all - want to get some advice for someone starting out in Commercial Real Estate Appraising.

A background: I'm in my mid 30s and based in the Bay Area. I've worked in tech for a while and am exploring this transition to commercial appraising - really like the value appraisers give as an independent voice, the flexibility, and getting to dive in on real estate. I also have a background in residential investing which I love as a side hustle. I have a financial runway to make this feasible for 3+ years even assuming no income at all with my family.

I've gotten an offer for trainee role at a smaller firm in my area - but they are a top firm and have been in the business for a while with 10+ appraisers. I would start part time at first for the first few months, then gear up to full time within 6 months. The tentative goal would be to get the Certified General within 3 years (this is ambitious I know - but allowing 3-4 years for this) and then work towards an MAI. I've heard $100k is a reasonable goal within 2 years and people at the firm I've spoken with make around $200k+ for work (about 40-50 hours a week).

A few questions for commercial appraisers out there:

• What advice would you have for someone starting out in commercial appraising?
• Are there specific things you like or don't like about the job as a commercial appraiser
• I've spoken with 15+ commercial appraisers from small to large firms and everyone seems happy in their field and few have left. Are you happy in the field?
• Would you recommend starting out now? How do you view the long-term outlook? In my view with a lot of older appraisers, a lot of boomers retiring and transferring assets - feels like the opportunity is huge and once you get an CGA/MAI you're set for life.
• Is my timeline reasonable?
• Is there anything you would flag about the life of an appraiser and downsides? I know benefits are lower than tech, the initial period is hard financially, and you only get paid for your produced work.

I'm so excited about this field! Just wanted to share how helpful this forum has been. Appreciate you reading this.

 

[Red Flint]

Consult an attorney to review an employment contract. Consider your own E&O insurance, even if covered by the employment firm. Already plan an exit strategy, including alternative paths to licensure, this will help if the going gets tough at the training firm, such as being asked to participate in valuations that seem unethical.

Meet with the local AI and/or ASA chapter, plot a route to designation. Head up 880 and attend a DeWeese class. Appraise on your own time, measure a building, plot the legal description, do a thorough use and market analysis, apply three valuation techniques, report on form or narrative, ask for feedback. Talk to market people, attend open houses, collect rents and sales data, be a nerdy inquisitor and analyst.

Each day that passes results in more improved real property. Be willing and able to learn how to appraise property rights in all forms, and be all ears and eyes when approaching property valuation categories that are new to you. Good luck!

 

[Tiffany Gibbons]

Hi all - want to get some advice for someone starting out in Commercial Real Estate Appraising.

A background: I'm in my mid 30s and based in the Bay Area. I've worked in tech for a while and am exploring this transition to commercial appraising - really like the value appraisers give as an independent voice, the flexibility, and getting to dive in on real estate. I also have a background in residential investing which I love as a side hustle. I have a financial runway to make this feasible for 3+ years even assuming no income at all with my family.

I've gotten an offer for trainee role at a smaller firm in my area - but they are a top firm and have been in the business for a while with 10+ appraisers. I would start part time at first for the first few months, then gear up to full time within 6 months. The tentative goal would be to get the Certified General within 3 years (this is ambitious I know - but allowing 3-4 years for this) and then work towards an MAI. I've heard $100k is a reasonable goal within 2 years and people at the firm I've spoken with make around $200k+ for work (about 40-50 hours a week).

A few questions for commercial appraisers out there:

• What advice would you have for someone starting out in commercial appraising?
• Are there specific things you like or don't like about the job as a commercial appraiser
• I've spoken with 15+ commercial appraisers from small to large firms and everyone seems happy in their field and few have left. Are you happy in the field?
• Would you recommend starting out now? How do you view the long-term outlook? In my view with a lot of older appraisers, a lot of boomers retiring and transferring assets - feels like the opportunity is huge and once you get an CGA/MAI you're set for life.
• Is my timeline reasonable?
• Is there anything you would flag about the life of an appraiser and downsides? I know benefits are lower than tech, the initial period is hard financially, and you only get paid for your produced work.

I'm so excited about this field! Just wanted to share how helpful this forum has been. Appreciate you reading this.

What is your 4 year degree in? That might help us better answer your questions.

 

[JeffSH]

Seems like you have everything figured out and have done research. Your timeline is reasonable if you have consistent work. Commercial appraising is cool. So many different building types and appraisal situations. I wish my supervisor was a CG, but it just didn't happen.

The long term outlook is very good. Everyone is old in this business because of the high barrier to entry.

 

[Fernando]

I know many CGs but they do mostly residential. Whether busy or not, we have overhead to pay.
Commercial sources are more expensive if you go independent.

 

[sordini]

Consult an attorney to review an employment contract. Consider your own E&O insurance, even if covered by the employment firm. Already plan an exit strategy, including alternative paths to licensure, this will help if the going gets tough at the training firm, such as being asked to participate in valuations that seem unethical.

Meet with the local AI and/or ASA chapter, plot a route to designation. Head up 880 and attend a DeWeese class. Appraise on your own time, measure a building, plot the legal description, do a thorough use and market analysis, apply three valuation techniques, report on form or narrative, ask for feedback. Talk to market people, attend open houses, collect rents and sales data, be a nerdy inquisitor and analyst.

Each day that passes results in more improved real property. Be willing and able to learn how to appraise property rights in all forms, and be all ears and eyes when approaching property valuation categories that are new to you. Good luck!

What is your 4 year degree in? That might help us better answer your questions.

Communications. Minor in Business.

 

[Ariba]

I've gotten an offer for trainee role at a smaller firm in my area - but they are a top firm and have been in the business for a while with 10+ appraisers. I would start part time at first for the first few months, then gear up to full time within 6 months. The tentative goal would be to get the Certified General within 3 years (this is ambitious I know - but allowing 3-4 years for this) and then work towards an MAI. I've heard $100k is a reasonable goal within 2 years and people at the firm I've spoken with make around $200k+ for work (about 40-50 hours a week).

You are way ahead of the game. Take the offer and run. What do you have to lose?

 

[Tiffany Gibbons]

Communications. Minor in Business.

Check with your state Department of Property Assessment or Revenue (different protocol in different states), or County Assessors nearby, better secure path with paid holidays, sick leave, retirement. They pay for training and will pay for your education, MAI, CG, whatever. You can do your "investor" stuff on the side as long as no direct conflict of interest. They love great public speakers (I am not that at all, I can be a very effective expert witness, but hate pointless meetings, and public speaking in general), though i love people and don't mind explaining things I have learned. It sounds like you would have a leg up there. Also, if you are male, that seems to help (in my experience only, of course) in commercial appraisal. All my direct supervisors in my career always had business degrees. The Communication degree people I know end up as Directors in government, not bad.

 

[Tiffany Gibbons]

I know many CGs but they do mostly residential. Whether busy or not, we have overhead to pay.
Commercial sources are more expensive if you go independent.

Exactly, Costar is too ridiculously expensive and the commute to share a computer terminal at a commercial shop (in Nashville) in outrageous as well. When Costar's business model dies, it will be like when land lines, video rental stores, and cable died. bahhaha. Remember cell phones and only being able to use weekend and after 9 pm minutes I'll pitch in to fund Bezos, Gates, Musk, Cuban, whoever can do it! BYE COSTAR, tribe has spoken. Sorry, got carried away.

 

[sordini]

Check with your state Department of Property Assessment or Revenue (different protocol in different states), or County Assessors nearby, better secure path with paid holidays, sick leave, retirement. They pay for training and will pay for your education, MAI, CG, whatever. You can do your "investor" stuff on the side as long as no direct conflict of interest. They love great public speakers (I am not that at all, I can be a very effective expert witness, but hate pointless meetings, and public speaking in general), though i love people and don't mind explaining things I have learned. It sounds like you would have a leg up there. Also, if you are male, that seems to help (in my experience only, of course) in commercial appraisal. All my direct supervisors in my career always had business degrees. The Communication degree people I know end up as Directors in government, not bad.

Thanks for the advice! I think that might be something in the future for me, but I too hate pointless meetings and have had a career full of them. I think the route of a nearby firm will be better for me. I think will be more painful financially in the first year, but long-term will pay out. I'm hopeful at least. There's still a little reservation, but I think it's just nerves from making such a big change, but I'm really excited about the industry and work!!