M'kay.. You're 21, and your bro. owns a mortgage company..

[Jonathan Winters]

I am about to proceed with my appraisal education, and within the last month my brother has initiated a mortgage company, he has picked up over 100 leads already and it looks to become quite prosperous for him.

He needs an appraisal for every lead he receives (assuming the steps leading up to the appraisal assignment are in order) and I'm thinking this profession could turn out to be quite lucrative, for the both of us..

However is appraising something I should invest time into learning? This job is very appealing to me because of the independence, the flexible hours, and for god's sake my own brother providing much of my business (of course I must diversify my client base).

So should I choose a more lucrative path with the opportunity to help build this mortgage company or am I already in a setting for a successful appraising career?

What would YOU do :?:

 

[Soar Ohio]

While it is legal for you to do appraisal for your brother, I don't think that you will find any bank that would take your appraisals. Too many conflict of interest problems for any bank to take on.

 

[David S. Roberson]

I agree.

 

[Charlotte Dixon]

Please don't tell me your brother's name is Edgar :roll:
(showing my age here)

Seriously, no, don't be an appraiser for your brother's mortgage company. That's not the thing to do. ... conflict, conflict, conflict....

 

[Richard Carlsen]

I hate to be the voice of reason and dissent but by all means, if you decide to become an appraiser, consider doing work for your brothers company provided this is acceptable with the banks.

But consider this first. Your brother has 100 leads now. How long will it take you to become qualified to do appraisals for the banks? 1 year? 2 years? Who will you work under in the mean time while you get your hours and experience in? Becoming an appraiser does not happen over night.

But say you do manage to get yourself fully qualified so the banks will accept your appraisals. Now a year and a half have gone by. What are the chances that your brother will still be in the business? Is he the kind of guy that jumps on and off things or in and out of jobs at the drop of a hat? Is he stable and dependable? Is he honest? Tough questions but if you are going to be in business for yourself, you must ask these questions.

But suppose that your brother is still making a go of it when you have finally gotten yourself fully qualified. And say he has a nice big loan application on a marginal homeowner with a rather large house but needs an absolute top dollar appraisal, based on the owners estimate of value, to make it happen. And suppose he hires you to do the appraisal. Are you going to have the guts to be honest with your brother about the value of the property when it becomes obvious that the homeowners estimate of value was 20% too high? Can you, and your brother, meet in the business ring, have a disagreement (and cost your brother big bucks) and still remain friends? Can you remain fully independent in your opinions of value when you know that the deal you are appraising would help your brother out a great deal?

I'm not sure that if it were me, thinking all of these things over, that I would want to put myself or my brother in that kind of position. This is assuming that I would want to keep my honesty and professional integrity. The reason is that I think too much of myself and I love my brother too much.

But then, it is your decision. Think about it......long and hard.

 

[Dee Dee]

Richard,

Excellent reply!

 

[Ross (CO)]

Try to imagine this scenario.....If you did an appraisal and came in with a value of $100,000 and had plenty of good, solid evidence from the local market to support that.....and your brother said he was really hoping the house would come in at $125,000 so he could help this nice young couple get started......what would you do ? And, if this type of thing happened on several occasions in the first month of being in-business with your brother would he still show brotherly love and accept your conclusions to value ? There may be a mutual decision that he find a different appraiser to serve his needs or you may decide that you would prefer to provide appraisals to someone who accepted what you provided. Only you know best the blend of traits and efficiencies which would serve you and your brother in a future working relationship. It appears that you may be counting your chickens ( appraisal fees paid ) before they have hatched ! Best wishes.

 

[RHM]

Great reply Richard:

Personally, I try to AVOID doing business with family and I think you'd find this the case with many other people in business.

RM

 

[Dee Dee]

Try to imagine this scenario.....If you did an appraisal and came in with a value of $100,000 and had plenty of good, solid evidence from the local market to support that.....and your brother said he was really hoping the house would come in at $125,000 so he could help this nice young couple get started......what would you do ? .

And add to that....."and if I can't do this loan then I guess we'll just have to put off getting your little nephew's braces. We just won't be able to afford them and our mortgage payment too if I don't get this deal to close".

 

[Larry Lyke]

Jonathan --

Here's 2 good reasons for not prusuing the path you're discussing:

#1. Big brother is watching you. You either perform the way he directs or he'll find somebody who will -- 'Somebody who loves him like a brother should.'

#2. Once you disclose in the appraisal as you should your relationship to the loan broker, no UW will accept the appraisal from you.

Another thought:

#3. Why become an appraiser with the unknown future and 2-year apprenticeship. Become an LO right now instead, and start lapping up those big commmission checks right now. Two years with little income to speak of doesn't compare favorably with most of your options describe by others above.

Sorry.

The advice is free. Wish I could charge you for it,tehn it would be more meaningful.