Considering Becoming an Appraiser in Texas

[FormerLandman]

Hello.

I have 7.5 years of experience as a petroleum landman. Many landmen are currently unemployed, and the overall consensus seems to be that the work will never go back to the way it was. The profession was already seeing signs of slowly dying out prior to the coronavirus. That said, I am looking for a new career, and appraisal work seems like an option; however, there are a few things below I want to confirm.

After reading this site and some others it seems there are a lot of hurdles to get started. The biggest hurdle being finding a good sponsor that you can learn and grow with (I also assume you want to find one before you start any classes?). It sounds like purely residential appraisal work is becoming less attractive for a host of reasons, and that commercial work is still attractive as a career.

I initially read that a residential apprenticeship would take six months to two years, then you can start working. After reading these forums I have found that 1) Good luck finding a certified residential appraiser to take you on, as they have no incentive, especially with all the changes in the last decade 2) It is not as simple as getting your hours, taking your test, and then finding a job. You may need several more years of experience before you start getting any good work.

I also want to confirm that it takes 5-7 years (some say minimum) to get your Certified General license, and once again you will still probably not be ready to go out on your own. It also sounds difficult to find sponsor(s) for long term commercial trainee work.

I do have some part time work that will last the next couple of years. The residential appraiser trainee option seemed doable for me even at minimum wage, but 5-7 years for the commercial general may be too long (I am in my mid-30s).

The only appraiser I know is the guy that did our house. I tried to give him a call but it looked like his license had been revoked after a complaint had been filed against him by an angry customer, and he was called before the board. I have seen a few comments about getting called before the board for an old appraisal, guess it is a real concern.

The AMC's sound a little like the large landman brokerages that popped up with the shale boom. They really undercut the smaller, more professional brokers, and have led to poorer quality work. If you're a field landman these days, that's where a lot of the work is (though many are currently shutting their doors).

I am currently accepted into a good MBA program. I have been considering foregoing it due to cost, time and the need to find a more direct career path. It seems that an appraiser trainee role could potentially take longer and be just as costly. One positive is that I am a bigger fan of apprenticeships than I am of academia.

Thank you for your time, and any suggestions or thoughts. I feel for everyone whose career is not expected to come back to pre-coronavirus levels. How has coronavirus affected appraisal work?

I will add that if anyone knows of a certified appraiser looking for a trainee in Texas, I would enjoy discussing it with them.

 

[ramrcdk]

Hello, Not a Texas appraiser. However, all you posted is True.
Don't want to kick it to death.
1. So, in being positive it will depend on your local demographics & to go on the Texas Appraisal Board site to mindfully consider just HOW MANY
appraisers are (competition or a mentor)- in "your coverage area". Search can easily be done by using Wayne's Site (Forum Web Master) Appraiser USA . com, a search by city-zip code, etc.
2. In obtaining hours = how much time do you have "to potentially work for Free or in the least very low income" ?

Way Past, I have Trained and only 2 ended up with a career in appraising: historic time in lending & difficultly in getting their own clients. Some lenders required 2-5 years experience BUT not all.

For the NOW: I would not seek appraising as a career. Back Then: Yes.

 

[alebrewer]

Don't disagree with ramrcdk, but just to offer an alternative opinion - I would consider appraising as a career now. The barriers to entry, while high, are not insurmountable - and even better if you already have a 4 year degree. True, finding a sponsor is not an easy thing - and especially if you're in the Permian basin it might be tough as (a) there aren't many appraisers out there, and (b) the market is way down out there because of oil. That said, if you CAN find a sponsor out there, and assuming you have a 4 year degree, you should be able to have your cert within 2 years. The market will change significantly in that time, but the average appraiser age is ~ 55 years according to Clearbox - personally I think it's probably closer to 65 years. Meaning that the pool of appraisers - especially in the Permian basin - will drop over the next few years. Add to that the current fee for a residential appraisal in the Permian basin is around ~ $600 to $650. Not many careers with that much earning potential...

 

[ramrcdk]

Don't disagree with ramrcdk, but just to offer an alternative opinion - I would consider appraising as a career now. The barriers to entry, while high, are not insurmountable - and even better if you already have a 4 year degree. True, finding a sponsor is not an easy thing - and especially if you're in the Permian basin it might be tough as (a) there aren't many appraisers out there, and (b) the market is way down out there because of oil. That said, if you CAN find a sponsor out there, and assuming you have a 4 year degree, you should be able to have your cert within 2 years. The market will change significantly in that time, but the average appraiser age is ~ 55 years according to Clearbox - personally I think it's probably closer to 65 years. Meaning that the pool of appraisers - especially in the Permian basin - will drop over the next few years. Add to that the current fee for a residential appraisal in the Permian basin is around ~ $600 to $650. Not many careers with that much earning potential...

THIS FROM a TEXAN who knows the area !!! AND true about the dinosaurs, I am one sorta.

 

[Salty]

Get the MBA while you have the chance and are young. I got into appraisal and got my MBA to help me get out of appraisal. Even if you decide to become a general the MBA should help you out. Plus it couldn't hurt if you decide to do something else 15+ years later. Plus with the MBA you will gain a valuable network for career opportunities, etc

 

[Red Flint]

5-7 years is a bit high if you get into the right training. Consider alternative ways such as state transportation in right of way department, utilities hire experienced land people for right of way or easement work, land appraisal work is also a way into non-residential path. Want to attend Appraisal Institute meetings or classes to meet people and leverage your landman experience, search the website thoroughly for people near you. Definitely want to consider an MAI track for long term stability in the profession and openings to quite interesting and challenging work. Network vociferously to test the waters and uncover more state specific information and people. Good luck!

 

[Terrel L. Shields]

any suggestions or thoughts. I feel for everyone whose career is not expected to come back to pre-coronavirus levels. How has coronavirus affected appraisal work?

I don't see that as a factor. I starved out of the oil patch back in 1990 after struggling with it for six years or more. But starting with the start up of licensing was a lead pipe cinch compared to the appraisal business of today. Since you have landman experience, (I was a geologist but have been an AAPL member too) perhaps getting some technical training along the line of law or even surveying since you undoubtedly can read legal descriptions and run title. I specialize in mineral appraisal, primarily estate valuation of people who have minerals and that is pretty steady work into my semi-retirement since it is mineral owners and not leasing- which basically is dead for the moment- what's it down to now. 270 rigs or so? When I started in the patch in 1973 they were bumping off the lowest number of rigs running since the depression and we are over 700 rigs then...crazy. Excessive profits breeds ruinous competition as JP Morgan put it.

And hedge fund driven madness made amateur hour a spectator sport as us "old heads" in the oil business sat back and let the young bucks completely crash the industry. We saw it coming a long time ago. By 2011, I could see that the reserves estimates made by oil companies were complete lies. They were inflating reserve estimates just like appraisers inflated house values in the boom of the early 2000s. Aubrey McClendon (rip) got up in Arkansas before Little Rock businessmen and promised every drilling unit would make 40 or more BCF gas...but my calculations were they'd be lucky to make 24 BCF. And they haven't. I've yet to find a section (640ac) that has made as much as 24 BCF with the max being around 16 BCF and those 30 year wells? They are plugging them like mad that are barely 10 years old and many of those have been shut in for 4 to 8 years hoping for a bounce in price so their feeble production will actually make a dime. I understand a lot of the landman work now is people buying wells or fields that have been shut in, are checking the records to see if they actually still even own the minerals as many have long ceased to pay even the annual $1 an acre shut in leases. They've reverted to the mineral owners...who are hopping mad because they know they are being cheated and often have too small amount of mineral to justify a big legal expense trying to get blood out of turnip companies who are either bankrupt or broke.

Breaking into the appraisal business is going to be tough, but I recommend that if you do, specialize. I would recommend agriculture/minerals if you have any agri experience. You might want to look at the Amer. Society of Farm Managers and Rural Appraisers - ASFMRA dot org. And you might want to look at the mineral appraisers group - Intl Institute of Mineral appraisers. The rosters of members gives you names of people to call. The Amer Soc of Appraisers (ASA) also has specialized courses for right of way work (a natural for a landman) - business valuation and machinery valuation. Niche specialization is the way to go.

 

[Tim Hicks (Texas)]

Well , I can tell you that it is difficult to find a mentor/sponsor simply because so many lenders specifically state "no trainees" on their orders. You can put they assisted in the report, but they don't want them signing the reports. I suppose AMCs are the same way. I don't know as I don't accept AMC work. My son is currently my trainee and basically we have to inspect together as a team for him to get his experience. So I get very little benefits because he cannot inspect on his own due to lender requirements. I do have one client that allows trainees, but we only get 1-2 a week from them. We might inspect a little faster and get them completed a little faster, but I am not seeing any real financial benefits from having a trainee, but I do have that added expense. Frankly, having a trainee is more liability and risk than help.

 

[RockBass]

I'd like to suggest a potential alternate path, which is the way I took to get here: have you looked into openings at your County Assessor's Office? I started with them as a residential appraiser and eventually the Assessor was willing to take me on as a fee trainee with the caveats that I do not perform appraisals in the county I am employed by and a strong promise that I would not quit once I got my certification. I've been a certified residential appraiser on nights and weekends for the past year and a half, as well as a day job as a mass appraiser with the county and it's been so successful that the Assessor has taken on two more employees and has them as trainees as well. And I was obviously able to get my mass appraisal work passed off on my work log.

 

[Fernando]

When times are good, more people interested in becoming an appraiser.
When times are bad, many drop out.
After the Great Crash of 2008, the appraisers could not work with mortgage brokers any more. It destroyed my business model.
My work load dropped like a rock. I apply to the county assessor appraisal position and it felt like there were hundreds of people applying.
I thought I could get the job but didn't get it. I think county uses point system giving favoritism to county workers.
Anyway I was disappointed and thought of getting out of the appraisal business like many did.
Then I started to find AMCs and lenders to work with. With luck, I found one good one and had plenty of work.
And the rest is history. Fortunate for everyone on the forum, Fernando lives!