Need To Increase Volume!

[sharktank]

Thanks, there is a lot of great advice in there. I'm formulating a plan.

I opened up a new spreadsheet. Within it are various worksheets, AMC's, attorneys, lenders, bail bondsmen, and anyone else I can think of.

I went to the MD state website and found the list of AMC's. I'm going to start there. I'm copying them into a database, and I will follow up by looking each one up online and get their phone number. I'm going to maintain and update this database as I go down the list, starting with all companies located in Maryland. I'm already in with a couple of them!

Then I'll call attorneys, accountants, etc. I also want to work with investors. I have a couple already. I like that kind of work, and they like the advice I give them to make their investments pay off.

I'm going to stay at this, as it's now my full time job to land decent clients. I agree I'm probably setting my sights too low. Thanks for the support and encouragement, and helpful suggestions.

No problem. Let me try and help more. Don't build such a big list to start. The stuff you build now will be outdated by the time you are done.

I am thinking lending work for banks and credit unions that don't use AMCs will be your core clients, no? If so, start with the lenders in your market that you already work/pay for MLS access. Your time is finite, no point going further out geographically, or further down the fee schedule than you have to.

Second list would be attorneys of various types that you can provide value to. I'd guess these relationships will take a little longer to cultivate as well.

Plus I'm guessing a bank can provide steadier work flow than a divorce or estate planning attorney, and right now you need volume at good fees, right?

Next step, I think, is to reach oug to the local lenders and see which ones do not use AMCs, and get on those rotations (and start shmoozing the decision maker(s) as I mentioned above).

Note: The lenders that use AMCs should be your source for an AMC list, just in case you need to take on some of that work down the road. Ask them who they use and make note of it in your spreadsheet. Sign up with AMCs already doing business i. Your local area.

Hopefully you don't need the AMC info, but you never know. As you gain direct lending, divorce, estate, and investor work, you can cut the lower fee, higher PITA AMC work loose.

Don't burn any bridges, but as time goes by, nourish your best relationships and let the others fade away or refer the work out.

After you exhaust the local stuff, repeat in another area that could be profitable if you need more volume.

When reaching out to these places, always...

1- Ask what you can do to make their life easie in regards to the appraisal process. Show you aren't just another guy looking for work, but a professional looking to provide great value to a prospective client.

2- ASK FOR THE BUSINESS!

 

[sharktank]

By the way, I'm not even an appraiser yet, so anything innaccurate in my post can be cleared up by others...but I know how to thrive when the rules are "eat what you kill."

 

[Terrel L. Shields]

Once you have set yourself up as a $200 appraiser, why do you expect them to want to pay more? I just saying....

 

[Tim The Enchanter]

Show me the money!

 

[EddieB]

Thanks, there is a lot of great advice in there. I'm formulating a plan.

Sounds like a solid plan that should yield the results you need. It is important to have a mix of work from various clients.

Some time soon your plan is to eliminate the $200 orders which is what a vast majority of the independent residential appraisers are trying to do as well.

What came first, the low fee AMC or the appraiser who accepts those fees. It's just the reality Mr Knucks, you realize the insult those fees are.

Again, I hope the best for you. Keep striving to increase your knowledge, expertise and prove your worth to worthy clients. I appreciate your attitude, it will serve you well in this profession and to some extent on this forum. Keep posting...

 

[Deleted member 128537]

What type of volume are you seeing at $375-$450?

Right now it's about 4 a week from lenders.

Plus I do some private work as well. But that's very inconsistent since my area is fairly rural. The fee on the private work depends upon purpose and scope. Sometimes people want to know what they can sell their property for or what they should pay for a property, so I do a restricted report and I can knock those out pretty fast. So I may charge 300 to 375 (depending upon property) since I can do them pretty quickly (not as many forms etc.).

If it is for a Divorce or legal proceeding my fees go up to 450 to 500 minimum. I am incredibly careful on them, and I probably keep a larger than necessary work file. But I would rather be over prepared in case I have to testify.

 

[bnmappraisal]

A lot of good advice given and it seems you're heading it. I wish you the best.

But as many have said, please, do not lower your sights to $200. Remember, you're putting your reputation and professional opinion on the line with each report you write. Do you really want to do that for $200???? Is it worth that? I'm not one of the higher fees, but still, don't really do anything for less than $300.

It's tough to get started, but it's a marathon, not the 100 yard dash! Best of luck

 

[Delta85]

I have no clue about your market area. Just for what it is worth I would not recommend that you earn a reputation as a $200. appraiser. In my market that type of reputation would cause you to never get on any local bank or credit union panel. The Realtors and mortgage brokers would shun you and the other local appraisers would never refer work to you. When your name is mentioned there would be the rolling of the eyes and the snickering behind your back. You will loose a lot of credibility and that credibility is what will make your future or cause you to fail. Just my silly opinion! Wish you the best!

How would a local bank or credit union find out he is doing $200 appraisals? Or realtors or brokers? Unless he works in Mayberry there are probably numerous appraisers working for AMC in his area earning fees lower as well as much higher. You do realize that right?

 

[Roy Courtney]

How would a local bank or credit union find out he is doing $200 appraisals? Or realtors or brokers? Unless he works in Mayberry there are probably numerous appraisers working for AMC in his area earning fees lower as well as much higher. You do realize that right?

You are a real source of enjoyment! I have been a real estate broker for 40 years...Did you ever hear of that song "heard it through the grapevine"? Realtors gossip and they talk to each other every day....If you are what "they" consider to be a DUD....it spreads and spreads until you have the label of a dud....Evidently you have no clue about the appraisal business or the real estate business! I doubt you are going to make much of a success, do not give up your night job of stocking the shelves! You will need that! Best to you!

 

[Delta85]

You are a real source of enjoyment! I have been a real estate broker for 40 years...Did you ever hear of that song "heard it through the grapevine"? Realtors gossip and they talk to each other every day....If you are what "they" consider to be a DUD....it spreads and spreads until you have the label of a dud....Evidently you have no clue about the appraisal business or the real estate business! I doubt you are going to make much of a success, do not give up your night job of stocking the shelves! You will need that! Best to you!

Talk about out of touch. You act like there is one guy in a town doing work for an AMC and everyone is giggling behind his back. AMC work dominates lending and on any given day in any major city or town there could be dozens of appraisals being completed through AMC. The point is, and you failed to answer my question in my post above, how would ANYONE know what fee a person is making? Some of the most respected appraisers in my area will do some AMC work from time to time. Are they doing $200 reports? Probably not. But how do you know?

When I call a realtor to schedule an appraisal I don't identify the AMC anyways. I'll say I have a request from ABC Bank to appraise zzz Smith St. for a purchase and would like to schedule an inspection. They rarely, if ever, ask if it is an AMC. And many local banks and mortgage companies and credit unions use AMC anyways, so where is the stigma?