Getting Started in Appraising Part Time

[investor]

I'm wondering about the possibilities of working in the RE appraisal field part time. I couldn't afford to leave my existing job and just start as a trainee. I'm already a part time investor/flipper/rehabber and would like to be full-time in the Real Estate field. It would be nice to have a profession that I could rely on for income when investment opportunities or money sources dry up. Also, appraising a property is a key part of any investment decision. Finally, I think I would enjoy appraising.

Any help appreciated.

 

[Laughing Heir]

I'm wondering about the possibilities of working in the RE appraisal field part time. I couldn't afford to leave my existing job and just start as a trainee. I'm already a part time investor/flipper/rehabber and would like to be full-time in the Real Estate field. It would be nice to have a profession that I could rely on for income when investment opportunities or money sources dry up. Also, appraising a property is a key part of any investment decision. Finally, I think I would enjoy appraising.

Any help appreciated.

I don't want to discourage you at all, that's definitely not my intent. I only want you to make an informed decision before you commit to it in your mind and waste a lot of money and time on classes. With that said, there isn't much opportunity right now in the residential side. It's just going to be awfully difficult to get the experience you need. Just recently, the state cut the number of trainees an appraiser can have to one, and, an appraiser must be certified for five years before they can take on a trainee.

There are some bright spots, here's what I would recommend:

Find a certified residential appraiser that doesn't do mortgage work (origination);

Find a certified general appraiser.


I wish I had better news but its tough out there. If / when the housing market rebounds, you'll be able to make a lot more money flipping REOs than you ever could as an appraiser.

Mike

 

[Lee Lansford]

You must be certain that there is a certified appraiser who is willing to work with you under the arrangement which you are seeking.

If your current employment is a regular "9-5", what you seek may be quite difficult to attain.

On a more positive note, the education (given your interests) wouldn't be a negative.

 

[Smokey Bear]

that I could rely on for income

You might want to read these forums first...

 

[TianaR]

I've been a commercial appraiser for 5 years and the outlook for jobs is definitely bleek or at least uncertain. Your best bet is to network with other appraisers via appraisal institute classes and on-line forums etc. Ideally you would want to align yourself with a commercial appraiser as you will get to appraise a mixture of properties. It won't be easy and it may take a while; it took me 2 years to find a mentor. I've seen trainees willing to work for free just to get hours towards their license; maybe you can "volunteer" for a set amount of hours a week just to learn the business.

The education classes to become an appraiser has increased and can cost a few thousand. I do agree with one of the previous posters that the education is itself is beneficial given your background already.

 

[investor]

Thanks to all for your frank replies. A couple of additional questions:

1. I get the impression that the job picture is bleak. Is this because the Real Estate market in general sucks or are there other factors?
2. What is the effect of the appraisal management companies on the appraiser job market or the remuneration appraisers receive?
3. How capable can one become at appraising by taking the required education and performing appraisals on one's own?

 

[The Warrior Monk]

Thanks to all for your frank replies. A couple of additional questions:

1. I get the impression that the job picture is bleak. Is this because the Real Estate market in general sucks or are there other factors?

The long and short of it was that there was a huge increase in demand for appraisers in the lending arena post-1998. That demand has evaporated, and likely for a long, long time. IMHO, balance will only be achieved when a significant number of appraisers permanently leave the business.

What is the effect of the appraisal management companies on the appraiser job market or the remuneration appraisers receive?

It depends on the type of work and appraiser does. I don't work with AMCs, so it has zero effect on my compensation. But for those that do, it's a different story.

How capable can one become at appraising by taking the required education and performing appraisals on one's own?

IMHO, it takes about 5 years before someone knows what they are doing. I'd estimate about 10 years of well-guided training to become an all-around expert.

 

[Lee Lansford]

...[*]How capable can one become at appraising by taking the required education and performing appraisals on one's own?[/LIST]

From a practical perspective, lacking a license issued from your state's appraiser regulatory agency, you probably would face EXTREME difficulty in having someone engage you as an appraiser (and, of course, appraising for mortgage lending would be impossible for you). Also, I don't know whether or not your state requires a person to be licensed if that person is representing himself as an appraiser.

In order to be licensed (unless your state has a separate license category for "trainee"), you need appraisal experience (not to mention the educational requirements); to obtain appraisal experience, your work must be done under a supervisory appraiser. "Going it alone" isn't an option.

 

[knadave]

This is by far one of the worst professions a person could consider entering. There is no future in it, pay has become pathetic and I doubt that anyone will be willing to take on a trainee, unless you are willing to work for free for 2-5 years. I have always trained new appraisers over my 20 years of business. There is no way in todays environment that I could afford to do it combined with teh fact that most lenders will not accept an appraisal with a trainees name on it anymore. Once you become certified there are so few non AMC clients left that in order for you to get any work you will have to cut your fees even lower than the crap fees they are offering now. After 20 years in business I doubt that I will be in this profession in 2012 unless something drastic changes, which I doubt will happen. The only that will most likely happen is it will get worse not better. I have talked several people out of entering this business over the past year. I recommend you runaway as fast as you can.

 

[Cruiznblue]

To give you a perspective from a Trainee (currently in process of submitting my hours to upgrade however)...it is doable. I got my trainee's license about 14 months ago and started looking for mentors. I was able to find 3 certified appraiser's to work for. The pay was bleak...sometimes wouldn't even get paid...but I had a side job to get by for the mean time. I was able to type reports and piggy back on inspections.

Once I get my license, these appraiser's are going to contract me out to do work in my area, and I plan on looking for my own.

It is possible to make as an appraiser...even today. Also I figure that many appraiser's are going to either retire or look elsewhere for jobs...leaving more and more opportunities open for the incoming.