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Commercial vs Residential Profitability

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kawinning

Thread Starter
Freshman Member
Joined
Nov 10, 2007
Professional Status
Appraiser Trainee
State
California
What is more profitable in the long run, commercial or residential appraising?
 

GordiaA

Freshman Member
Joined
Feb 6, 2002
Professional Status
Certified General Appraiser
State
Georgia
In my opinion, It's commercial hands down!
 

David Wimpelberg

Moderator
Staff member
Moderator
Joined
Mar 30, 2005
Professional Status
Certified General Appraiser
State
New York
Commercial hands down!:)

Reasons:
  • I'm not reliant on lender work. In fact, I'd prefer not to have it. I do maybe two lending assignments per month, if that.
  • Much higher floor for fees. Unless it is a simple land appraisal with no issues, fees are $1,500+, and usually more.
  • No AMC and MB work...don't miss working for them.
  • Much more interesting assignments.
  • Clients actually need appraisals! That's right; many times you'll actually get treated like a professional!
 

Mztk1

Senior Member
Joined
Dec 3, 2006
Professional Status
Certified Residential Appraiser
State
Florida
I think anyone who excels in what they specialize in can make a good living no matter which they do. I like commercial, but I find a lot of deals fall through before the appraisal is done or even started. At least that has been my experience, which is limited.
 

Annelle

Junior Member
Joined
Jan 26, 2004
Professional Status
Certified General Appraiser
State
Arizona
And don't forget less requests for comp checks. The ones that do generally ask for comp checks are people new at doing commercial loans.
 

kawinning

Thread Starter
Freshman Member
Joined
Nov 10, 2007
Professional Status
Appraiser Trainee
State
California
Commercial hands down!:)

Reasons:
  • I'm not reliant on lender work. In fact, I'd prefer not to have it. I do maybe two lending assignments per month, if that.
  • Much higher floor for fees. Unless it is a simple land appraisal with no issues, fees at $1,500+, and usually more.
  • No AMC and MB work...don't miss working for them.
  • Much more interesting assignments.
  • Clients actually needs appraisals! That's right; many times you'll actually get treated like a professional!

Thanks for the info......are you independent or do you work for a company doing commercial?
 

PropertyEconomics

Elite Member
Joined
Jun 19, 2007
Professional Status
Certified General Appraiser
State
New Mexico
The answer to your question is a bit more complicated than most here have provided.
It is my belief that it takes a certain type of person to be able to understand and grasp the many differences in commercial appraising when compared to residential work. While the fees are higher in commercial assignments, the hours are longer, the payment rewards more protracted, and the sense of accomplishment certainly more protracted on a job to job basis. Not everyone makes a good commercial appraiser. If you do not have the ability to write effeciently and put down your thoughts in a logical fashion its most probably not an area you will excel in.
If you have good analytical skills and you can write, then, commercial certainly allows you a greater amount of diversification. It also takes much longer to become competent as a commercial appraiser because of the vast differences and the great many different property types you will encounter.


If you are a very good and thorough residential appraiser the amount of money you can make is essentially the same as that of a commercial appraiser. There is a great need for many good and thoughtful residential appraisers and I would suggest to you those that are very good at their craft are still most probably very busy. Diversification in residential appraising can be just as rewarding as that of commercial work if you expand into divorce work, estate work, litigation assignments, etc..


As you can see there is not really a simple answer to your question .. it must come from within your make up from mental, emotional and motivational perspetives. You simply must be honest with yourself regaring your abilities of analysis and writing in order to make the determination appropriate for you.

Apply yourself to either craft and you should do quite well. I will caution you, however, doing both at the same time will most probably result in your not being overly proficient at either. I know some will disagree here but that has been my experience in the long run.

My best to you.
 
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Mountain Man

Elite Member
Joined
Jan 15, 2002
Professional Status
Certified General Appraiser
State
Georgia
Yes, commercial!
However, I still do a good bit of residential properties. The key for me was leaving the "form" appraising world behind... the biggest pay raise I could make. No AMC's, no mortgage brokers pressuring for unreasonable request, and the clients actually appreciate your services.
 
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