Any appraisers here also real estate agent?

[prasercat]

I have decided to wear a second hat, that of real estate broker.

Here in Colorado, one must work under an employing broker for at least two years before becoming an independent broker. An employing broker is the highest level. My goal is to become an independent broker and do both appraisals and help people find or sell homes (just not both with the same person at the same time).

My intention would be to work both at home and at the real estate brokerage office, although, mostly at my home office (which is where I do my appraisal work). There are many activities associated with real estate sales; such as, open houses, meetings, marketing, negotiations, closings, etc., so I would certainly need to keep my appraising schedule "porous" to allow for these demands.

I will be dropping into real estate offices to have a chat with some employing brokers shortly;however I was interested in knowing if anyone has some first hand experience with this arrangement and which companies may be best to work with in this way as an associate broker (some states call them real estate sales persons or agents). I would think some don't want a "part-time" agent. However, it would be a "flexible" part time to accommodate the nurturing of this career and proper service to my clients and not a rigid or pre-designated set of hours per day or week.

Since it will take time to develop this side of the business (even if I did it full time), I will need to rely upon my appraisal business to pay the bills for some time.

Thanks in advance for any insight or input!

 

[J Grant]

I am no longer a RE agent, though I used to be, and kept my license active a few years after going into appraising.

Imo, succeeding in selling RE /moving up to broker is all consuming and hard to do part time. I do know some people do it, but either they are mainly appraisers who invest and maybe sell a few here and there, or mainly RE agents who appraise a bit on the side. Hard to do each 50% and 50% but you might just find a niche or your own way of dealing with time issues (willing to work 7 days a week would do the trick)

Best of luck!

 

[Mountain Man]

Yes, but I am the broker/owner. I tried working with other "franchise" or large companies and they all want you to work exclusively for them. That situation doesn't allow me to build, remodel, or appraise as I want. So I started my own real estate company a few years ago during the crash.

 

[Salty]

I am both and have always been. In my world, it is impossible for me to be very successful as a realtor and be a successful appraiser. I do try. However, in order for me to grow my sales business I would have to completely stop appraising for a time so I can devote time to marketing my services, etc. I moved my license to a Keller Williams for no reason other then it was the closest brokerage to my appraisal office. I have had no sales activity in a year and do not have anything on the horizon because I am too busy appraising. Catch 22. I need the income. I would like to obtain the broker license and open a one atop shop appraisal and brokerage, but I am not sure I will ever have enough sales under my belt to qualify for the broker license.

When I did have sales it was stressful having to deal with open houses, conveyencing, and all the things that go with being a realtor while trying to manage my appraisal work. I found that in some cases the amount of appraisal work I would turn away so I could deal with my listing was more than the commission I earned.

 

[Mountain Man]

When I did have sales it was stressful having to deal with open houses, conveyencing, and all the things that go with being a realtor while trying to manage my appraisal work.

First, I don't do open houses!!! Waste of time except to gain buyer leads. When possible I have my favorite lenders qualify people before I meet them and use technology to communicate with clients on both the appraiser and brokerage end....get a pad!!! At the very first instant your phone rings you have to determine if they are a viable buyer, and within 15 minuets you have to build rapport as a knowledgeable agent in your area. Qualify them yourself, know exactly what they can afford VS need. Ask them about where they live, family and what where they see themselves living. If they are completely outrageous, as many are with so many hunting for "foreclosures", I'll offer deals in outlying more rural areas. If they poo-poo that idea, I get off the phone as fast as possible... sorry, your expectations are too high for the current market where there is currently a shortage of houses.

All in all, you have 15 minutes to determine qualifications, needs, expectations, and if they'll get a loan. THAT is sales.

 

[Meandering]

I have both licenses. Like Salty, I don't sell anymore, but I do pass leads on to other office members. It is possible to team up or partner with a newbie salesperson. They handle the grunt work and you split the commission. It get's them experience and a foot in the door and frees up more of your time. Way back in the day I did both, but life was simpler then and appraisals were not the mini books they've become now. But I'm keeping that license. Every once in awhile I think about going back in and listing a few, but it seems to be a fleeting thought anymore.




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[prasercat]

Very interesting replies.

I work all days of the week, but not every day all the time. My wife and I have our own businesses, so we just set aside some personal time when we are seeing time ahead when we can synchronize our schedule. Therefore, I would have every intention of working on weekends, just not on every day of every weekend all the time.

It seems to me that, aside from any inclination or talent to SELL property, that more appraisers would be naturally suited to be a buyer's agent. For those of you that have your sales license, have any of you found more success with one or the other? It would also forgo the need to attend open houses, but I doubt one could rely upon it for a major share of one's income.

Keller Williams appears to advertise that they want you 100% of the time (not part-time), so I'm surprised that Salty is working out of one of their offices. They also have a passive income program (profit sharing), which is interesting to me. In fact, passive income of any kind is interesting to me.

When I go out on appraisals, I really enjoy talking with the owners, although most of the conversation is about their homes. It might start with the updates but often ends up being the entire history of their ownership and a bit of their personal history.

I know I was successful as an investment consultant years ago, since I really enjoyed "listening" and getting the complete picture before I made an investment recommendation, and my personal commitment for a win-win business arrangement (Yes, middle management hated me, but my manager was OK with it, since I was bringing in big accounts from wealthy referrals). It was my dear clients that kept me coming back each day.

Given this, it seems to me there are aspects of being a realtor that would greatly appeal to me. I would expect that either my appraisal work or work as a broker will be the dominant income source, and that is OK. I wouldn't expect a 50% -50% as some kind of ongoing phenomenon.

Quite honestly, I would hope that my appraisal work could eventually go to a back burner; even if only to get out of the way from the oncoming and out of control mega-financial institution's freight train - I'm a bit tired of feeling like a deer staring into oncoming headlights.

 

[Salty]

My sales experience has been 99% working with sellers. My last sale was about a year ago and I sold about 5 properties a year prior to that. Only one was with a buyer. So for me the seller side seems to be the best fit as I do not have to show multiple properties to buyers. As far as an open house, that means nothing. I used it as an example of one of the many things a realtor must to at times to keep the seller happy. I view it as a colossal waste of my time. Unless I am 100% selling then perhaps I can use the open house to obtain leads. I have had a few homeowners who insisted on open houses.

As far as a Keller Williams, who knows how they feel about my lack of productivity. I think it all depends on each office. I was very clear that I own/operate a very busy appraisal practice when I talked to the manager there. I have been there only a few months. If they decide I'm dead weight and only bring their percentages down I have no issue with moving my license elsewhere, makes no difference where I hang it. I only moved my license to be closer to my appraisal office.

I was with a small independent brokerage/appraisal shop. So after I opened my own appraisal shop, I eventually decided to move my sales license as well. I figured I would see how one of the big brokerages work and drink that cool-aid for a while. I may decide a smaller independent brokerage is a better fit. I can say that the technology they have is vastly superior to what I had at the shop I was with before and there is no shortage of agents willing to sit at an open house for you. Too bad I am too busy with appraisal work to take full advantage of it for now.

I do see the KW is bringing new agents by the bus load each week. Pretty soon 1 out of 4 people in my area will be a real estate agent. I do feel my area is already too saturated with realtors. For example, I moved to my current home two years ago. I bought it from a broker. There are also two other agents on my street.

One more thing to note. As I interact with numerous homeowners each week I have a sense that there must be a way to generate a good amount of business from these homeowners whether its a future sale or a referral. That is until they see my appraisal and their value had dropped. This could then work in the other direction. An angry homeowner would never recommend my sales services.

 

[prasercat]

First, I don't do open houses!!! Waste of time except to gain buyer leads. When possible I have my favorite lenders qualify people before I meet them and use technology to communicate with clients on both the appraiser and brokerage end....get a pad!!! At the very first instant your phone rings you have to determine if they are a viable buyer, and within 15 minuets you have to build rapport as a knowledgeable agent in your area. Qualify them yourself, know exactly what they can afford VS need. Ask them about where they live, family and what where they see themselves living. If they are completely outrageous, as many are with so many hunting for "foreclosures", I'll offer deals in outlying more rural areas. If they poo-poo that idea, I get off the phone as fast as possible... sorry, your expectations are too high for the current market where there is currently a shortage of houses.

All in all, you have 15 minutes to determine qualifications, needs, expectations, and if they'll get a loan. THAT is sales.

That sounds like sensible and valuable real world advice. I'm sure there are buyers out there that just want you to drive them around to "window shop", like going to the mall or something, with no respect for your time. Avoiding people that will waste your time seems like an important part of the day-to-day.

I think I may want to totally immerse myself in the business for a limited time to get over a significant part of the learning curve as fast as possible and maybe get some forward momentum - Just conjecture right now.

Thanks greatly for your input!

 

[Marty Boone]

I hang my license with KW. My MLS, CE and office fees are covered if I represent a buyer or seller in 1 or 2 transactions a year. I like having a back-up office where I can keep a second computer system just in case. Being able to go into the KW office to get information on high end properties from the agents that know their stuff is essential when I am appraising homes above 1 mill. Giving presentations is a good way to keep the management off your back if you are not planning on doing a lot of business.