Contractor in the truest sense

[RichMahagony]

In the same way that a framer may frame homes for multiple builders, are there any commercial appraisers who appraise for multiple firms? I’m just curious as volume is significantly down where I am and I need to get creative.

 

[Terrel L. Shields]

I am independent. I work for banks and private parties. I've never worked in "a firm". Community banks hire directly most often.

 

[RichMahagony]

I am independent. I work for banks and private parties. I've never worked in "a firm". Community banks hire directly most often.

I’m CG as a 1099 and work with an MAI who does all the bidding and therefore essentially “work for” him. Do you think this hinders me? Should I do as he, and you yourself do, and go out on my own? That’s a big question and I know there are multiple things to consider. I just wonder what others think.

 

[Terrel L. Shields]

If I was slow, I'd ask the MAI if you could seek additional work with others.

Going it on your own is slow go at first. You might also offer to do sales calls under that MAIs umbrella and ask for an extra cut for the work you generate from clients that are not his regular customers.

 

[KHS445]

Is there work the MAI is turning down due to being less complex of lower paying that you could take on for a larger percentage? Things like small commercial buildings, car wash, small apartment complex, etc. I have made a real good living on and off for close to 25 years doing work that CR either won’t or can’t due and is below what most MAI’s want to do. There are a couple of MAI’s about 65 miles away that will refer business to me if it is something they don’t want to screw with and like wise I will refer work to them if it is more complex than I want to deal with. Example I do a lot of mom and pop motels, rental cabins, campgrounds, etc. but don’t do flagged lodging properties.

 

[Fernando]

Data source must be more expensive for commercial. The need for work needs to cover the high overhead when working independently.

 

[RichMahagony]

A

Is there work the MAI is turning down due to being less complex of lower paying that you could take on for a larger percentage? Things like small commercial buildings, car wash, small apartment complex, etc. I have made a real good living on and off for close to 25 years doing work that CR either won’t or can’t due and is below what most MAI’s want to do. There are a couple of MAI’s about 65 miles away that will refer business to me if it is something they don’t want to screw with and like wise I will refer work to them if it is more complex than I want to deal with. Example I do a lot of mom and pop motels, rental cabins, campgrounds, etc. but don’t do flagged lodging properties.

He does a good job keeping me in the loop about the bid activity. I don’t think there’s much of anything he won’t bid on other than residential. It’s just so slow right now where we are in the southeast.

 

[Fernando]

A

He does a good job keeping me in the loop about the bid activity. I don’t think there’s much of anything he won’t bid on other than residential. It’s just so slow right now where we are in the southeast.

I appreciate your honest view as a commercial appraiser in current market. I Haven't heard much from commercial appraisers but I suspect they are in lot more hurt than residential appraisers since residential activity is doing better than commercial. The commercial market is worst I'd ever experienced.

 

[KHS445]

I appreciate your honest view as a commercial appraiser in current market. I Haven't heard much from commercial appraisers but I suspect they are in lot more hurt than residential appraisers since residential activity is doing better than commercial. The commercial market is worst I'd ever experienced.

i am as busy or busier than I was at this time last year and I have increased my fees 10% to 30%, depending on what and where it is. There is no one else that really works my primary service area and I am quoting turn times in the 4 to 6 week range. I know it could all come to a halt anytime, but I will make the best of it for as long as I can.

 

[Alamo Cowboy]

In the same way that a framer may frame homes for multiple builders, are there any commercial appraisers who appraise for multiple firms? I’m just curious as volume is significantly down where I am and I need to get creative.

To me it takes about 3 years to build a commercial appraisal practice if you are fully qualified to do business. One needs to market themselves and secure data sources. One needs for formulate a marketing plan. One needs to execute it. One can't expect orders to come to them due to their licensing and location. One needs to generate the interest in selecting your firm to do business with. One can be employee/subcontractor or the owner but not both.

Since you are posting your question. I don't think you are a candidate to be an owner of a commercial appraisal firm in the near future. To me you are at the mercy of your mentor. If you look for business at appraisal organization meetings it will get back to your mentor. I assume your mentor controls the commercial data sources. If you contact other CG appraisers it will also get back to your mentor. I feel you are not ready for a true split/divorce from your mentor.

Right now I don't feel you are in a good position to get more business from your mentor or new business going on your own. The down cycle in commercial appraising to me will extend for 2 more years. If I were you I would privately look a the public sector for work. There are a few GS type positions available in most areas as well a state or county positions. It may be time for you to search for a greener pasture.