California General Appraiser

[sputnam]

I do and have done both commercial and residential. Like everything else on earth, there are advantages and disadvantages to each. Commercial can be more interesting. More variation in properties and more challenging analyses. On the downside, it's usually a multiple day... sometimes a month or more... process. Residential work tends to be less varied but, usually, you can look at a property early in the day and have the report done before bed. No dreaming about the assignment.

 

[RCA]

The AVERAGE base salary for the 2 million state employees in California is about $105,000/year. Retirement benefits are the best. And many jobs provide overtime that can more tha double the base salary. … so if you absolutely want to be an appraiser, then that is a way to go.

 

[The Warrior Monk]

He is always telling me General is a much better way to go, and that its easier than residential, but I always think he is not a general appraiser so what does he know.

I would rephrase this by saying that being a general certified appraiser has many more options, and job stability.

As far as the types of work we do, one of the reasons I got my GC is to do subdivision work. The farms in the area I work are all being subdivided, and they're aren't many appraisers that do this type of work in this area. There are all sorts of considerations that are involved in the particular area I work that aren't applicable elsewhere. I also appraise development rights, or properties with restricted rights, such as agricultural reserve area, which have no development rights and can be used only for farming.

There is a major, multiyear project that is about to be undertaken in the area I work dealing with both inland bodies of water, and oceanfront. It will involve obtaining easements, and possibly eminent domain. They prefer CG appraisals for this project.

I also appraise retail, industrial, etc. which tend to be straightforward. I generally avoid some of the more complex specialties such as hospitality type business, hospitals, certain types of going concerns, etc. There is a lot of competition in those property types in the general market area, and as a sole proprietor it doesn't make since for me to get involved in those types of projects.

The long and short of it is that the residential credential is a restricted credential, and the general credential is not.

 

[Tiffany Gibbons]

The AVERAGE base salary for the 2 million state employees in California is about $105,000/year. Retirement benefits are the best. And many jobs provide overtime that can more tha double the base salary. … so if you absolutely want to be an appraiser, then that is a way to go.

This is true. My old job at the Assessor's Office for a county in Tennessee pays $72,000 per year (with cost of living differences, that is comparable to $105,000 in California). No license required, you would become certified through the state taking classes through IAAO. Great benefits, pension, etc. I had to have a 4 year degree to apply back in 2007, but most of my co workers had been there since high school and many retired after 25 years in. Still others stayed 30-40 years and were promoted to higher positions just based on longevity. If you can stand strict dress codes and meetings, public service is the way to go. State positions are the same. You would start at a very low salary but be given a plan to have a stable career. I would advise anyone to start there. That being said, like one of my teachers, also an MAI who worked there before I did said "it's not the most exciting gig in the world but it is a steady paycheck for an appraiser." This is timely advice as was before the last "recession".

 

[Fernando]

I do and have done both commercial and residential. Like everything else on earth, there are advantages and disadvantages to each. Commercial can be more interesting. More variation in properties and more challenging analyses. On the downside, it's usually a multiple day... sometimes a month or more... process. Residential work tends to be less varied but, usually, you can look at a property early in the day and have the report done before bed. No dreaming about the assignment.

So after all the time spent and additional high costs for commercial sources, do you make significantly more money doing commercials?
Commercials have been decreasing value during and after Covid.
In SF, many companies are not renewing their leases thus office spaces less in demand. Remote working appears to be the future changing the commercial landscape.
With less office workers going to downtown, nearby small business and eateries will also see downward sales, thus spiraling down commercial property values.

 

[Tiffany Gibbons]

So after all the time spent and additional high costs for commercial sources, do you make significantly more money doing commercials?
Commercials have been decreasing value during and after Covid.
In SF, many companies are not renewing their leases thus office spaces less in demand. Remote working appears to be the future changing the commercial landscape.
With less office workers going to downtown, nearby small business and eateries will also see downward sales, thus spiraling down commercial property values.

You can make a lot of money in commercial still, especially if you are doing luxury apartments complexes, senior housing, nursing homes, hospitals, medical offices, Alzheimer's homes, hospice facilities, etc., but most of those accounts are handled by large nationwide firms, because they have access to all the property management information. Costar is way too expensive to do Mom & Pop owner occupied stuff. I can still do rural commercial work but it is tons of work and research and I'm in Nashville MSA, so you have to pay to play with regard to data.

 

[Fernando]

You can make a lot of money in commercial still, especially if you are doing luxury apartments complexes, senior housing, nursing homes, hospitals, medical offices, Alzheimer's homes, hospice facilities, etc., but most of those accounts are handled by large nationwide firms, because they have access to all the property management information. Costar is way too expensive to do Mom & Pop owner occupied stuff. I can still do rural commercial work but it is tons of work and research and I'm in Nashville MSA, so you have to pay to play with regard to data.

When I did commercial decades ago, I paid something like $50 a comp. I don't know how much now.
I would go to Costar office and look at the comp books and pay for the ones I wanted. Comps were few and not as similar as subject.
I didn't feel comfortable in determining the high values and liability much higher than residential.

 

[RCA]

You can make a lot of money in commercial still, especially if you are doing luxury apartments complexes, senior housing, nursing homes, hospitals, medical offices, Alzheimer's homes, hospice facilities, etc., but most of those accounts are handled by large nationwide firms, because they have access to all the property management information. Costar is way too expensive to do Mom & Pop owner occupied stuff. I can still do rural commercial work but it is tons of work and research and I'm in Nashville MSA, so you have to pay to play with regard to data.

And I heard from another member that the large national firms provide $100,000,000 E&O coverage --- which he says is "the" big advantage - and explains why it is almost impossible for a single appraiser or even small outfit to compete with these large commercial appraisal firms. My LIA is almost $1200/year for $1M/$2M coverage. Also, if you do get in trouble, a large firm can provide far more support than a small firm - or especially what you could provide yourself. Also, you will have to put up working with a 25%-45% commission. - It is not an easy way to make a living.

If you are going to work for such a large firm, that will always be your only alternative, - so why not just work for the government to begin with?

 

[George Hatch]

One advantage to CG work is that the demand is more stable. Not as much excess when the residential markets are running hot and not as much slack when the residential markets are running cold. Another advantage is that most of our reports are actually read for content by the decision makers. When we get reviewed the people reviewing them are actually our peers, not semi-skilled clerks or bots. And they're not trying to get through 8 reviews a day.

I will also say that it's almost impossible to service an even mix of conventional SFR work and non-res work at the same time - the turn time demands and timing issues are too different for that. It's one thing to throw in a the occasional complex SFR in with your normal CG work because in those instances the clients aren't usually in as much of a hurry. Or the opposite; throw in an occasional CG assignment with your normal 1-4 work. But trying to mix assignments with some having a 1wk turn and others having a 3wk turn becomes a real hassle. There's nothing more annoying than to have to drop what I'm doing to rush out to appraise a house. The rhythms are different. And the clients are different, leastwise when it comes to how they interact with the appraisers.

 

[JackKemp13]

Damn, thank you all very much for the discussion, and answers it helps a lot with what I am wanting to do, and what to expect from the profession, did expect this much help or response so thanks all very much! I am currently attending San Jose State University as of right now and getting my bachelor's in history, just throw that out there.