Multi-state certification. is it worth it?

[Financially Feasible]

Once again I look to the wisdom of the forum!

Let me explain my situation. I live in Pennsylvania and am a Certified Residential Appraiser in both Delaware and Maryland. DE/MD and PA do not have a reciprocity agreement in place so, technically, I would have to do another apprenticeship in PA to get my certification there. Recently, I learned that NJ and PA have a reciprocity agreement in place (as do DE and NJ) and, after speaking with the fine folks on the appraisal commission in PA, they have said that I would able to apply for reciprocity if I get a NJ certification (even though my NJ certification would be gained through reciprocity from DE). Therefore, I would be certified (residentially) in four states. Since I live in SE PA (about 15 minutes from the DE border) and both NJ and MD are both within very reasonable driving distances (and since I have realtively good knowledge of the RE markets in certain counties of all of these states), then I believe that I would gain a benefit from having an appraisal certification in all of these states (especially since all 4 are in a 1 hour radius from my office).

My questions are these: a.) How many of you are multi-state licensed/certified? b.) Do you find that this has helped your business or are you spending too much time driving between states doing your inspections (thus being non-cost and non-time productive)? c.) Is it better to wait until I get my Certified General before I go applying to other states or does it not matter? d.) What other advice/comments can you give me that might be of assistance?

I appreciate everyones' help as always!

 

[Don Clark]

Ed,

I certainly do not have licenses in as many states as you contemplate. However, I am state certified residential in both Virginia and North Carolina. I know the markets in North Carolina, IMNSHO, as well as I do in Virginia so having a license there is beneficial to me. I only do appraisals in Currituck and Camden counties that both border on Virginia. I do not even do all of Currituck county since part of that is accessible only by going to the outer banks, in another county, and back into currituck. That part of the county is more like the rest of the resort area of the outer banks. But, I find it worthwhile and rewarding. I have been doing business there about 20 years. I obtained both license by examination. Since then Virginia and north Carolina have worked out a reciprical agreement. It sounds like it would be worthwhile for you to do what you contemplate as long as you are geographically/market competent, and you say you are.

 

[Mark A Rewbury]

I think having multiple state certification is good, especially if you do not have the four year college credits that kick in Jan 2008. If later down the road you want to move from your state to another state that you are not certified in you would be out of luck (unless you want to go back to school for a couple of years). The 21 semester hours required would take you quite a while to complete.

 

[Frank Lostracco]

Ed,
It certainly helps in the slow times, as you have a bigger area to receive orders. I started with a DE license, then I applied and obtain a NJ license when I moved to South Jersey in 2003. Then this past spring I applied, and obtained a PA license. It seems that I am in Delaware County, PA all the time now.

 

[Couch Potato]

I think having multiple state certification is good, especially if you do not have the four year college credits that kick in Jan 2008. If later down the road you want to move from your state to another state that you are not certified in you would be out of luck (unless you want to go back to school for a couple of years). The 21 semester hours required would take you quite a while to complete.

Simply not true Mark. Once one is Certified in one state, other states are "encouraged" (aka required) to recognize that status under Guide Note 5 of the new criteria.

 

[Walter Kirk]

I live and work near you in Camden County, N.J. Before the advent of state licences I worked in N.J. the five county Philadelphia area in Pa and New Castle County, De. Because of the high cost of initial licences I stopped working in De. and Pa. In the past few years I have had less than 20 requests for work in these states. In those cases I used appraisers with the appropriate licenses and went along as an assistant splitting the fee.

This is a business decision, will the income from appraisals in three additional states justify the expense (both fees and continuing ed) required to support the licenses? In my case it does not.

 

[DJBanas]

Ed:

I know several appraisers who have licenses in multiple states. I am currently in the process of upgarding to certified res in NJ with the intent of obtaining the reciprocal agreement in PA. The license fees are a b*tch, but, if you control your routing you can certainly make it profitable. And the more diversified you are the better off you will be in the tough times ahead.

 

[The Warrior Monk]

This is going to be a business decision.

If one lives near a state border, it may be feasible. Some appraisers appraise properties that are regional in scope, in which case it may be necessary to have a license in several states.

 

[Mark A Rewbury]

Simply not true Mark. Once one is Certified in one state, other states are "encouraged" (aka required) to recognize that status under Guide Note 5 of the new criteria.

I stand corrected...that is good news.

 

[Greg Parker]

Talk about a cost nightmare though.

Jersey is ridiculously expensive. I live geographically close to you, and have a friend who is PA/DE certified. We have both discussed getting the Jersey license (typically in the slower months... Dec-Feb) but in the long run, I would rather concentrate my business locally as opposed to driving to DE, then Jersey, then PA. The cost of gas is so prohibitive right now, I am happy just hanging out in Philly.