Advice on how to build client base

[Mike Kennedy]

Courney - recommend utilizing USER CP to enable email / instant messaging.

 

[rescom]

After 4 long years a trainee, I finally accumulated enough appraisal experience to obtain my North Carolina certified residential appraiser’s license, just in time for the real estate market to reach record lows in lending activity. Residential sales and refinancing in the local Research Triangle area of North Carolina are down approx 30-35% from 1 year ago. I have not received any appraisal assignments from our Office in the past 2 months

But I have seen little to no effort being made by our office to find new customers. I myself am willing to conduct a marketing activity to identify and meet with local lenders or mortgage brokers, offer a description of our appraisal services and see if the lender would be willing to give us a chance with some of their appraisal needs. I have also contemplated creating a website for the company as a marketing tool. The managing appraiser for our 3 man office is in agreement and will pay me a higher fee split for any new clients I bring in.

I welcome all constructive advice on ways to build and enlarge our client base. For the most part our business has relied on just a few 2 or 3 local clients (Suntrust Bank, Country Wide and a random scattering of out of sate brokers or AMCs.

Please share you experience and suggestions with me.

Not sure if you are aware of this or not, but you have 5 months left to do work for local MB clients. After 1/1/2009, they cannot order appraisals.

 

[Doug in NC]

Not sure if you are aware of this or not, but you have 5 months left to do work for local MB clients. After 1/1/2009, they cannot order appraisals.

I hope you are wrong about that. I don't think HVCC is set in stone yet. Last I heard, some big wig lenders and those they influence in Gov't are working on getting it stopped. Giving more business to AMCs is an exercise in futility anyway. They are only one step above the lowly MB.

 

[rescom]

Giving more business to AMCs is an exercise in futility anyway. They are only one step above the lowly MB.

So your saying that you would rather do work for someone that you consider a bigger lowlife than an AMC? Wouldn't it make more sense to claim that they are one step below the lowly MB?

 

[Doug in NC]

So your saying that you would rather do work for someone that you consider a bigger lowlife than an AMC? Wouldn't it make more sense to claim that they are one step below the lowly MB?

How about I rank them both at the low rung? I don't recommend working with either one.

In conclusion, choose other clients to build a business on: credit unions, relocation, foreclosure, estate, divorce, FSBO, etc. Working for the lowest fee, fastest turn time, and your ability to hit a number is no way to build a long-term business. Get an education in appraising beyond standard lender work and you won't have to choose between the lesser of two evils.

 

[rescom]

How about I rank them both at the low rung? I don't recommend working with either one.

In conclusion, choose other clients to build a business on: credit unions, relocation, foreclosure, estate, divorce, FSBO, etc. Working for the lowest fee, fastest turn time, and your ability to hit a number is no way to build a long-term business. Get an education in appraising beyond standard lender work and you won't have to choose between the lesser of two evils.

Ok. So you recommend that no appraisers do work for 99% of the appraisal work available? That all 100,000+ appraisers nationwide should only do non lending work? I'm sure there will be plenty of non lending work available for everyone with no competition. Great recommendation!

 

[Doug in NC]

Ok. So you recommend that no appraisers do work for 99% of the appraisal work available? That all 100,000+ appraisers nationwide should only do non lending work? I'm sure there will be plenty of non lending work available for everyone with no competition. Great recommendation!

Resc, if it makes you happy, keep pursuing the "STANDARD" lender work. It's your business after all. Considering the current economy and the projected stagnation of the lending industry for the next few years, it is my recommendation (to those with an open mind) that you do something else besides standard lender work exclusively.

 

[rescom]

Resc, if it makes you happy, keep pursuing the "STANDARD" lender work. It's your business after all. Considering the current economy and the projected stagnation of the lending industry for the next few years, it is my recommendation (to those with an open mind) that you do something else besides standard lender work exclusively.

Apparently you don't understand my point. I suppose you will just have to witness it first hand in about 4 months. All appraisers who don't or won't work for AMCs will be going after the same non lending work that you are suggesting. There is not nearly enough work to satisfy even a small fraction of appraisers.

Also, why do you keep refering to me? I never said that I "pursue the standard lender work". I was just making a point. I am not defending AMC or MB work. I'm just pointing out the obvious. Supply and demand.

 

[Willie]

Doug, would you be so kind as to quit quoting rescom. I happen to have his posts on my ignore button and every time you quote him, I can see what he wrote. Thanks in advance for your cooperation and assistance in helping me avoid reading his posts.

 

[J Grant]

far as I know, mortgage brokers can still order appraisals etc after 2009, problem is, MB's have little work to offer...most of them can't fund loans even if they have clients. I hate to sound pessimistic, and sorry your timing was off re this market, but I would advise spending the effort and energy you would spend marketing on a second business. I think appraising is going to be very slow for the next two years. If you have the energy to market , fine, but I think the sources of where to market to are so limited...most REO companies are not even ordering appraisals, they are using BPO's. Estate/divorce almost never uses appraisals anymore, far as I know. FISBo.s good luck, most of them are too cheap and will use Zillow...SRelocation companies are loyal to their long time appraisers, but if you can be persistant, some of that might pay off over a period of time...try taking an REO class if one of them offers it. FHA perhaps in some areas of the country.
Don't want to be a wet blanket but myself and many others have already been down that route of looking into the shrinking, minisucle, elusive "non lender work"...it existed a decade ago, barely exists now. The group who claim to make a living at it allude to thier own contacts and can never recomend any way of getting the work, and seem out of touch with the fact that attorneys almost never order appraisals any more, nor do banks for their REO's...a BPO seems good enough, sad to say. If you like marketing and sales, you'd do well either selling RE or insurance...most appraisers go into appraisal because they are not great people persons/marketers...if you are good at it, so many fields pay well for sales....



Spend some time appraisal marketing, sure, but also look into whatever skills you had before appraising or other things you are good at..residential appraising imo is a better part time job right now than full time, best of luck out there and maybe things will pick up in fall?