• Welcome to AppraisersForum.com, the premier online  community for the discussion of real estate appraisal. Register a free account to be able to post and unlock additional forums and features.

buying into an appraisal firm

Status
Not open for further replies.

Rick Morton

Freshman Member
Joined
Mar 12, 2003
Hello all. The post below (Sanya wanting to sell her appraisal biz) prompted me to post on this forum. Hi, I'm Rick and I want to get into the appraisal business. So far, I can't find anyone who'll take me under their wings so I can get the proper hours in to be certified. I've made it clear to any prospective employer that I would eventually branch out on my own, so apparently they don't want to train the competition, naturally!

I've been in contact with a gentleman who want to get out of the business and retire to another part of the country. If I buy the business from him, he'll stay on for 2-3 months to train, then basically put stamp of approval on my appraisals thru the mail (because he will have moved away from area by then) until I have enough hours. I haven't bought the business yet and we are still apart as far as any payment, but Sanyas' post has given me some ideas.

I'd appreciate any ideas or comments that you may have. Can you just be able to buy into the appraisal business or am I going about this the wrong way? Thank you and look forward to seeing what you have to say. Rick Morton
 

Carnivore

Elite Member
Supporting Member
Joined
Jan 15, 2002
Professional Status
Certified Residential Appraiser
State
North Carolina
Rick,

hmmm, Well in the state of NC trainees can not do appraisal work that is more than 50 miles from the supervisory appraiser business location.

So if your in NC sorry, you will have to find another angle.
 

Farm Gal

Elite Member
Joined
Jan 14, 2002
Professional Status
Licensed Appraiser
State
Nebraska
Don't sign any contract that has you laying down significant cash up front...

I would check out this gentlemans personal credentials very very carefully... and make sure he has a good or excellent reputation.

Keep in maind that with the best of intentions when you have clients screaming for a report that he has to sign off on he HAS to be available,... and he may not be.

Finally: not to scare you but where would you be even IF he is an honest Joe, if he gets hit by a truck on the 4th month of your agreement? 8O ...

If this guy has been in bidness a long time and has cronys remaining in the area.. what are the odds one of them will aid you in this eventuality...?

I would be asking a LOT of careful questions.

It might work for you better than beating the streets or it may strip your wallet without mercy...
 

Frederick R. Ruffell

Senior Member
Joined
Jan 21, 2002
Professional Status
Certified General Appraiser
State
California
Just because he is approved with all of his clients, does not mean that you are or will be when you have your Licence and he is gone. My clients want me doing the appraising because we have a relationship and I know how to alert them to the issues that they need to be alerted to and, at the same time, how not to have the appraisal delay an otherwise solid deal.
 
B

Bemis Pownall

Guest
then basically put stamp of approval on my appraisals thru the mail (because he will have moved away from area by then)

This business is way too fast pace for snail mail. Clients want it ASAP!

2-3 months training? Then on your own,,,better get lots of E&O!

Good Luck

:icecream:
 

Tony Lehn

Junior Member
Joined
Oct 28, 2002
Professional Status
Certified Residential Appraiser
State
Indiana
Like NC, in Indiana, if the subject is more than 50 miles from the supervisors office, the sup must accompany the trainee. This is a very recent law, set up to stop situations like yours.
 

Christine Marie

Senior Member
Joined
Jan 6, 2003
Professional Status
Certified Residential Appraiser
State
Mississippi
just so you will know how competitive this game is...... i have been certified since april of last year, and continued to work with my father-in-law since that time, even more so, when he was diagonosed with cancer. {mainly because, procreating my own business at his expense did not seem (neither fitting or appropriate). So i continued to grow his business interests/concerns and even 'worked' with a trainee he hired after he decided [on his own] that i was suddenly going to 'quit him'. Now one month has passed, since his demise, and i am still not getting work from some of his client's, ultimately, 'nor i am receiving the volume of business' that "I myself was doing, in his stead. l am amazed at what has transpired since his absence. [FYI- immediately after my certification-"I did get added to 'many', many lists as an approved appraiser, so it makes me wonder.....what gives?]
 

Jeff Horton

Senior Member
Joined
Jan 15, 2002
Professional Status
Certified Residential Appraiser
State
Alabama
I will say this if no one else will. 3 months is not adequate to work directly under an appraiser and be turned loose for most trainee appraisers.

Secondly MANY lenders now require the Supervisor to have inspected the property when the co-sign the appraisal. He can't do that if he has moved off.
 

Dee Dee

Elite Member
Joined
Jan 16, 2002
Professional Status
Certified Residential Appraiser
State
Colorado
Taking up on Bemis' point about E&O insurance....I don't think most carriers will insure a registered appraiser that isn't working directly under a supervisor who is willing to sponsor them.

Jeff is right about the 2-3 month training period. It takes that long just for a rookie to learn how to fill out the forms correctly and get basic research skills. It doesn't even begin to give time for learning the politics, client skills and business operating end of the profession.
 

Terrel L. Shields

Elite Member
Gold Supporting Member
Joined
May 2, 2002
Professional Status
Certified General Appraiser
State
Arkansas
Can you just be able to buy into the appraisal business or am I going about this the wrong way?

Buying into the business is only feasible if the seller is willing to stay for a minimum of one (preferrably 2) years. and i doubt the two of you would get along that well..the seller expecting to earn as much as ever and you expecting to make a living...i.e.- you are taking the business of one person and dividing it between two people and both expect to live well out of it.

A person wanting to sell like that should find a buyer/trainee well in advance of retiring.

I work for the Walton family banks...Arvest to some folk. They require you have a state license or certification for 4 years before they will accept your 2ndary Mkt appraisal...in house, some can use you..and you get the trash that won't go secondary market. Few local banks accept newbies except under someone they are familar with...and they will judge you harshly if you screw up. So you will end up with only mortgage clients that will use anybody provided you are pliable and bring in the numbers...once you establish that reputation, then nobody will have any confidence in your values. "honest...i just inflate for those out of state boys, really you can trust my numbers..."

As a start up and residential, you have no where to go...if you were farm or commercial, there could be a chance to build a clientele as these are usually farther behind and need more help. If you are starting out in business and have few assets, don't bother with E & O, whatcha got to lose? If you lose a suit early, your career is likely over anyway. Bankruptcy is viewed as a good tool in such situations. E & O protects you only if you have assets needing protected. The E & O carriers are looking out for # 1 and their job is not to defend you or your appraisal, but to get out of this mess as cheap as possible.
ter
 
Status
Not open for further replies.
Find a Real Estate Appraiser - Enter Zip Code

Copyright © 2000-, AppraisersForum.com, All Rights Reserved
AppraisersForum.com is proudly hosted by the folks at
AppraiserSites.com
Top

AdBlock Detected

We get it, advertisements are annoying!

Sure, ad-blocking software does a great job at blocking ads, but it also blocks useful features of our website. For the best site experience please disable your AdBlocker.

I've Disabled AdBlock
No Thanks