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Appraiser Side Income And Future Of The Appraisal Business

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Real Estate Vince

Freshman Member
Joined
Feb 12, 2017
Professional Status
Certified Residential Appraiser
State
Ohio
I was wondering if there are any appraisers that do more than appraisals to increase income and change things up a little (investing, Realtor or anything else that is real estate or even not real estate related)? Also, are there any success stories about appraisers starting an appraisal firm and how they have them set up (hire appraiser/s, develop great systems to help become more efficient, train assistance's to help with non valuation activities, etc)?

I would also like to hear about where the future appraisal business is headed due to the lack of new appraisers entering and the average age of a current appraiser being at/near retirement age. I do not see many new appraiser coming into the field (would love to find numbers for new appraisers and ones leaving the business) due to the amount of work it takes to become an appraiser and the fact that appraisers are truly underpaid.

As a newer appraiser (4 years) and being less than 30 years old, it is very interesting to think how the industry will be in 5, 10 or 20 years,
 

Michigan CG

Moderator
Staff member
Moderator
Joined
Nov 1, 2006
Professional Status
Certified General Appraiser
State
Michigan
Here is what I think will happen in the next decade:

-The cookie cutter assignments will be fewer as big data will become bigger and the lenders will only need someone to verify the condition of the property. I would guess that home inspectors could fill this niche.

-The days of the multi-appraisal shop are coming to an end for multiple reasons.

-Lenders will still need appraisers for complex properties and the lenders will demand that the appraiser performing those appraisals be very competent.

-The appraiser who doesn't use boiler-plate comments will be in demand. The appraiser who can actually support their adjustments will be in demand. The appraisers who can handle complex stuff will be in demand.

-Private work will always be in demand, divorces, lawsuits, estates, etc. The talented appraisers will flourish in this as they will drive away the "skippy" appraisers.

-Designations will become important again.

-The AMC model will be further exposed and will implode.
 

djd09

Elite Member
Joined
May 20, 2009
Professional Status
Licensed Appraiser
State
Ohio
As a newer appraiser (4 years) and being less than 30 years old, it is very interesting to think how the industry will be in 5, 10 or 20 years,

Hello Vince. Nice to see another Ohio native posting. Welcome to the forum.
 

Terrel L. Shields

Elite Member
Gold Supporting Member
Joined
May 2, 2002
Professional Status
Certified General Appraiser
State
Arkansas
Specialize ...residential isn't worth the effort. My first mentor built four-plexes, lived in one unit, then sold and built another, retaining her unit and paying rent until the next one was finished. Another mentor developed subdivision lots, and a third wrote songs.
 

J Grant

Elite Member
Joined
Dec 9, 2003
Professional Status
Certified Residential Appraiser
State
Florida
I was wondering if there are any appraisers that do more than appraisals to increase income and change things up a little (investing, Realtor or anything else that is real estate or even not real estate related)? Also, are there any success stories about appraisers starting an appraisal firm and how they have them set up (hire appraiser/s, develop great systems to help become more efficient, train assistance's to help with non valuation activities, etc)?

I would also like to hear about where the future appraisal business is headed due to the lack of new appraisers entering and the average age of a current appraiser being at/near retirement age. I do not see many new appraiser coming into the field (would love to find numbers for new appraisers and ones leaving the business) due to the amount of work it takes to become an appraiser and the fact that appraisers are truly underpaid.

As a newer appraiser (4 years) and being less than 30 years old, it is very interesting to think how the industry will be in 5, 10 or 20 years,

Since you are younger, my advice would be to upgrade to commercial st gen license, even if you make less $ the first few years as a commercial trainee, it will be worth it in the long run. The future of residential is not great, perhaps not immediately dire, but still nothing to cheer about. Lenders will still need appraisers even for so called "cookie cutters" but in a more limited role perhaps, and even if the current model is retained, fees are relentlessly bargained down by the AMC interests which are entrenched in the system. While "big data" may not replace appraisers, it can marginalize their role . There are only so many complex or rural assignments to go around, and private work is a limited market...otherwise residential appraisers would all be thriving off private work as an option.

Since you are under 30 you have time to address the reality that you entered appraising in a changing environment. Commercial also will be subject to change due big data and AI but still it would pay to get the st gen license...regarding other part time income, if you have the seed money or a partner to invest in RE as flips or rental, that works or pursue a skill or talent that could be additional income if you stay with only a res license.
 
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Terrel L. Shields

Elite Member
Gold Supporting Member
Joined
May 2, 2002
Professional Status
Certified General Appraiser
State
Arkansas
there are any appraisers that do more than appraisals to increase income
FYI. I never viewed appraisals as my only income. I have a small farm. I rent part, sell hay off the rest, I consult in petroleum geology, I've taught appraisal classes, and even published two books. My third will be released this spring. And I'm not above doing some custom farm work brush cutting, mowing, etc.
 

Michael S

Senior Member
Joined
Mar 18, 2009
Professional Status
Certified General Appraiser
State
New Mexico
I have a second career in the National Guard. These days it ends up being about a month each year between the weekends, annual training, and additional schools/training. Since I'm an officer and I've got almost 15 years in I make about $15k on average, plus it provides excellent cheap health insurance - very important if you're a solo practitioner.

I've tried to do some other things on the side and have had several business ideas but with two jobs and a big family there's really not enough time to do anything else. I'd love to be able to get into real estate investing but I need to worry about buying a house for my family before trying to purchase any real estate as an investment.


One simple idea I had was offering a service to local real estate agents to help them increase their internet presence. If I search a broker, by name and city, and I can't even find their phone number or email - how do they expect potential clients to contact them? There's lots of sites out there that try to aggregate this information but sometimes it's not even on the broker's own company website. There's a huge market since there are so many thousands of real estate agents in any large city and many of the 80% that are only getting 20% of the deals would probably like to be in the 20% that gets 80% of the deals. A few hundred dollars to help them get even one more listing a year would be well worth it.
 

Terrel L. Shields

Elite Member
Gold Supporting Member
Joined
May 2, 2002
Professional Status
Certified General Appraiser
State
Arkansas
have a second career in the National Guard
Not a bad option if military, my niece's step-son is recruiter in Navy. They will consolidate his station next year but the Air National Guard has offered him a position that will be hard not to accept.
 
X

xm150287

Guest
Appraising 18 years. I performed Workforce development training pre appraisal years and I have been working last 3 years managing employment accounts for a large agency. Appraisal work is a supplemental income now. I have nice benefits (Medical,401k) through the agency I work for. Also, I work from home, so I can can inspect properties during the day as they come. I do not worry about the ebbs and flows of the market anymore since I have another income source. I would advise any fee appraiser to diversify and have income from non real estate sources. Only way I would do valuation work again full time is if I worked as an Assessor for a city.
 
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