How is Business and your anticipation for the future?

[Joe Flacco]

This is how my business has tracked for the last 20 years. It's been volatile but it's an uptrend. Higher fee average coming out of every pullback.

Call me an optimist, but I think the uptrend continues.

 

[DTB]

I think one of the main things residential appraisers don't understand is that the revenue is not your income. Just bad business people in general. And if your wife and son are driving you around and setting up your reports, while you type reports in the car, then the revenue and income is divided by three people.

I think a bigger shortcoming s not understanding division of labor. Not all things need to done by and billed at an appraiser rate.

 

[Joe Flacco]

I think a bigger shortcoming s not understanding division of labor. Not all things need to done by and billed at an appraiser rate.

That is definitely the Danny wiley school of thought. I understand the concept. I just don't think the ratio of time that is not appraiser rate versus the time that is appraiser rate is a lot.

 

[Joe Flacco]

I mean, what can a non appraiser do?

The main thing is non appraiser can provide subject inspection. It's not as good as appraiser inspection but if it is acceptable to the client then that is about 20-25% of the billing.

The next thing is data entry and most people use data master or something similar. I used it for several years but I didn't find that it saves much time so I stopped using it.

 

[Joe Flacco]

The main way to be profitable from division of labor is to be a firm owner and have staff appraisers. That would be good for you as the firm owner / supervisory appraiser.

 

[gregb]

Not sure if its viable for a fee shop owner to hire staff appraisers and have enough work to sustain both the owner and staff appraisers. Back in the day, it was an option, but the present situation where the AMC's gobble up what used to be the fee part that was splittable with staff. I am lucky with a stable of direct clients, VA and random private work from lawyers for DOD work.

 

[DTB]

I mean, what can a non appraiser do?

The main thing is non appraiser can provide subject inspection. It's not as good as appraiser inspection but if it is acceptable to the client then that is about 20-25% of the billing.

The next thing is data entry and most people use data master or something similar. I used it for several years but I didn't find that it saves much time so I stopped using it.

20-25% is significant. Add in appointment setting, calls to property management, paying bills etc. adds up and relieves some burn out factor as well

 

[Joe Flacco]

20-25% is significant. Add in appointment setting, calls to property management, paying bills etc. adds up and relieves some burn out factor as well

I mean, I dunno. The best way to make it work over the long term is getting to higher fee averages by becoming better and better at your craft.

That's a better plan than trying to squeeze $50 more out of $500.

 

[DWiley]

I mean, I dunno. The best way to make it work over the long term is getting to higher fee averages by becoming better and better at your craft.

That's a better plan than trying to squeeze $50 more out of $500.

Why not do both?

 

[Joe Flacco]

Why not do both?

You can certainly do both. It just doesn't really make sense as a one-person operation.

Excluding the site visit, If you are a one-person operation, there just is not enough work for another employee. For example, if you are busy and have 60 hours of work per week, and you can delegate 15 hours of it as non-appraiser work, then you need someone who only wants to work 15 hours per week. Maybe it could be a good part-time job for a high school student.

It makes more sense if you have a firm of 4 appraisers, and you can hire 1 support person for the 4 appraisers.