July Record month for orders

[Frederick R. Ruffell]

This month is an all time record for me in terms of orders placed and completed. So much so that the thought of taking on another appraiser is in my head alot these days. At what point does it become profitable to have another appraiser work for you. Partime/fulltime, Independent contractor vs Employee. Anyone have any insights to this.
I don't think I would take on a trainee as it seems the costs far outweigh the benefits, but a licensed appraiser that can fly on their own seems tempting.

 

[Tim Hicks (Texas)]

Frederick,

The bigger question is, how long will it last? Taking on a trainee or assistant is a big obligation. I would feel obligated to keep them afloat if it slowed down. That is the trouble with this business, feast or famine. It has been a big feast lately, so the famine is due sometime. I have watched too many shops take on employees, trainees, etc. and then lay them off or starve them out. So, weigh your options carefully. Plus, I have trouble trusting anyone with my name on the appraisal. I watched to many flunkies take the wrong path and put out bad appraisals when I was training. Trotta is right, I am too anal.

 

[Oregon Doug]

Frederick - just a few musings from an old guy.

I started on the dumb end of the tape back in '69 (19, not 18!) as an appraisrette in a small commercial shop. Since then, I've been a staff appraiser, a Chief appraiser, a one man shop, part of a mega corporation and owned a full service appraisal co with a bunch of appraisers. I've done commercial and residential appraisal in most corners of the country.

Tim is right - it is a feast/famine cycle. It always has been and likely always will be, with us appraisers usually about six months to a year behind on the curve.

With all that new fangled stuff like USPAP, licensing, AVM's, BPO's and battery operated calculators (I can still work a slide rule), your exposure and risk have gone up dramatically. Are you sure you want to expose yourself to the additional risk?

My advice: don't do it.

Been there, done that, Oregon Doug

 

[Richard Carlsen]

The first part of the month around the 4th was slow but the last 3 weeks have built up steadily. We took Friday afternoon off and the weekend to go to Da U.P, don’cha know? Sunday evening when we returned there were 8 orders on the fax machine and e-mail. For some reason, incoming order numbers were up high but billings were down for July from the month of June.

But then I look at the stack of uncompleted reports staring me in the face and I know whence the difference cometh.

I think I will only inspect sales and previously agreed to inspections next week just to play catch-up. That may cost me a few orders but it won't be like last Oct-Dec when it was hard to figure out if one was coming or going. I don’t want to get into that rat-race all over again.

 

[Judy Whitehead (Florida)]

We have had a steady decline over the last couple of months, but as someone above said, it is always feast or famine. Actually, we were too busy before. I also was contemplating hiring another appraiser. At this point, however, I am happy to keep three appraisers busy. I only like working 5 days a week and really don't like working more than about 10 hours per day. I have a separate office and close the door and go home.

We did have a big slowdown on one of our big accounts. I haven't called them yet so don't know why. It is a management company, so perhaps they found someone cheaper. That is always a hazard with management companies!

 

[Doug in NC]

I'm in the same position. Last month was very slow, but this past month was the biggest in the past 5 years for my company. We have picked up 2-3 new companies, so that is making a difference.

I am going to hire someone part-time. I will hire a trainee if they seem intelligent and trustworthy. If they don't work out after the first few months, they will be "starved out". It is increasingly difficult to find quality people to assist in the business these days. I guess other occupations are more profitable and have better benefits.

I had a good college-educated trainee last year until work slowed so much I lost her. I have hired my share of experienced appraisers only to find that you can't depend on them, and they often don't do things the way you would like. Trainees can at least be molded the way you would like them to be, they are more profitable, and you don't have to worry as much about them competing with you for clients (at least not for a few years).

 

[Judy Whitehead (Florida)]

I think what I really need is some part time office help. I need to have my files organized, old things thrown away, phone answered, etc. I hate doing all of that. If it was someone sharp, they could perhaps even do a "learning" curve on some of my programs to see what all they can do.

If I had office help, perhaps I could do more appraisals and develop more clients.

 

[Richard Carlsen]

Based on the stack of work in front of me, the thought of taking on another appraiser but I just don't know.

I'm hoping that when I get this Pocket Total working that will save 20 to 30 minutes per appraisal and open things up a little. Right now I’m having trouble getting it connected and I’m too busy to take the time to make an appointment with a la mode sales to walk me through.

Being not too many years away from becoming a very serious fisherman (retiring), my thoughts are turning to bringing someone on who wants to work in the business and buy into it at the same time. That thought keeps crossing my mind now and then.