Commerical And Industrial Vs Residential

[Dean Brand]

All,

After beating the streets and sending out approx. 400 emails, I have come out with two solid offers for my appraisal apprenticeship.

The first is with a residential firm, and I want that so I can open my own business. The second option is with a commercial and industrial firm.

Example: If you can appraise commercial then residential is a given // If you only learn residential then you will have to learn commercial after that.

So where will I benefit most in the long run?

Thanks in advance for any feedback.

 

[Steve Wyrick]

Example: If you can appraise commercial then residential is a given // If you only learn residential then you will have to learn commercial after that.

Two different worlds. Just because you appraise residential, does not mean you are competent to appraise commercial and vice-versa. Suggest you start with residential in about 5 years after you have gotten your certified residential, then start thinking about commercial work.

 

[Bill_FL]

Why would residential be a given if you can appraise commerical? They aer two different animals. Some can do both, some can not.

Go in the direction your interests take you. If you are more interested in the commerical market, go that way.

 

[Dean Brand]

It occoured to me that the premise is still the same. In respect to the comps and determining values. Obviously commercial is much more involved.

Thought that if you can appraise a commercial space with comps and etc. why can't you scale that down to homes. However, from homes to commercial there would be much more to learn. Figured I would learn the commercial first so that I would always have that experience.

Thanks in advance for you feedback.

 

[Restrain]

Given that they're trying to put the residential appraiser out of business, I vote for Commercial.

 

[spettifer]

If you have somebody that will hire and train you to complete commercial appraisals I would go for that first. The trends for residential just don't look that great. Plus, there are fewer parasitic companies in commercial. You can always affiliate yourself with some residential guys down the road and get a feel for that end of the biz. You may find working on one appraisal for two weeks isn't your thing and prefer doing residential. The training for commercial would be invaluable in the long run and would only make you a better appraiser for whatever type of properties you appraise.

Scott

 

[Dean Brand]

Scott,

Thanks so much for the advice. I agree with what you said, I guess I just needed to hear it from a non-bias party.

Any others input is greatly appreciated.

Dean

 

[Mike Garrett RAA]

Dean....IN MY MARKET numerous commercial appraisers have switched to residential because the commerical market is so cut throat. David Wilson, who posts to this forum would be a good person to talk to.

Residential is a faster track and easier to for those wishing to own their own business. Reputation and designation is more important in commercial work. Formal education is another factor. Both segments of the market can be good, I wish you well.

 

[wyecoyote]

Dean,

The other thing you might want to consider is with the current down turn in the residential side of things. I don't know how the commercial side of the business is going but the residential side has had a significant down turn. That may be more of a reason to consider the commercial side of appraising. It may take longer since you will be going straight for your general rather than cert/lic.

Ryan

 

[George Hatch]

The learning curve is a lot longer for non-residential appraising because it covers so many more property types and it more fully uses appraisal theory in general, especially the different approaches to value. I'd say it would take at least double the amount of time to go from trainee to self-sufficient in non-res appraising. Some people would never make it at all. Just as not every person is cut out to appraise, not every appraiser is cut out to do commercial.

If your work preference is to be constantly on the go, developing your groove and perfecting a daily routine, then residential appraising is probably going to be a better fit for you. If you prefer to spend a lot more time researching, analyzing and writing than driving, and don't mind working on assignments that involve a much lower degree of homogeneity, then non-residential work might better suit you. Just don't expect to go from trainee to solo operator in 3 years or less.