New appraiser in Austin Texas want to know how to start bussiness

[tino]

Hello, Little bit of back ground. I am in my 50's and have been home inspector for 25+ years full time in Austin Texas (Austin Real Estate market has been great for at least past 10 years) and make a comfortable living, all works comes from word of mouth advertisement and even with Covid 19 , I am still doing about 10- 14 inspections a week now (I have/ hired a business partner who helps me and I split my fee with him 50/50). BUT, I am physically and mentally worn out and do not foresee myself wanting to do inspections much longer. I have been thinking about selling my business to my partner but do not know how much and do not know if I should or not.
I have been in process of getting my appraisal license on and off since 2004. I accumulated more than enough hours (About 3000 hours) and taken more than enough courses , etc and know the test material pretty well, and I feel like I am ready to take the leap. Any suggestion or word of wisdom as to how to get started is appreciated. If I work for a appraisal mill type company, what is the typical fee split rate? Is that something I should explore? ( the idea is that I do need to hustle to get work)
Also, I am thinking about moving to Southern California. Will this be a good area to work as an appraiser?
I welcome and thank you in advance for all the constructive thoughts and ideas.

 

[Bob Ipock]

Best wishes and good luck to you. I suggest that you make certain if your education and experience is still good for credit as far as not being too far in the past...as in expired. Also check and see about reciprocity between TX and CA. If you are making a good living now you can expect to make 1/2 a good living for 3-5 years.

 

[J Grant]

Hello, Little bit of back ground. I am in my 50's and have been home inspector for 25+ years full time in Austin Texas (Austin Real Estate market has been great for at least past 10 years) and make a comfortable living, all works comes from word of mouth advertisement and even with Covid 19 , I am still doing about 10- 14 inspections a week now (I have/ hired a business partner who helps me and I split my fee with him 50/50). BUT, I am physically and mentally worn out and do not foresee myself wanting to do inspections much longer. I have been thinking about selling my business to my partner but do not know how much and do not know if I should or not.
I have been in process of getting my appraisal license on and off since 2004. I accumulated more than enough hours (About 3000 hours) and taken more than enough courses , etc and know the test material pretty well, and I feel like I am ready to take the leap. Any suggestion or word of wisdom as to how to get started is appreciated. If I work for a appraisal mill type company, what is the typical fee split rate? Is that something I should explore? ( the idea is that I do need to hustle to get work)
Also, I am thinking about moving to Southern California. Will this be a good area to work as an appraiser?
I welcome and thank you in advance for all the constructive thoughts and ideas.

Can you stay on with your business and send your partner and others out on the physical inspections, maybe take a smaller % and you run the business and client/promotion side of it ?

I dunno but becoming an appraiser was always tough and now with Covid impacting many markets with what looks like a slow down in work, supervisors to train hard to find and AMC impact on fees not changing - not a good combo. If the field looked stable long term I'd say ok worth the short term pain ( because a trainee makes little $ ) but long time is uncertain - due to technology and big data which has been encroaching along with the other usual issues.

That said, if you are determined to do it and find a trainer...a mill might be one of the few places that do train now, and some are okay with that. Texas or Arizona is a better bet than S California, I have a friend that appraises in San Diego and except for a few exceptions, fees are horrible there because not only is there a large supply of appraisers, but the sales and turnover of RE in Cali is so slow due to high prices and their RE tax structure.

 

[Bob Ipock]

Curious. Are home inspectors in TX licensed by the state and are they required to be licensed general contractors? Both are the case in NC.

 

[J Grant]

I don;t know how it compares in Texas, but in FLorida working for the building permit division looks like a great job! They get good salary govt benefits, regular hours - some stay in building and look at plans and specs others drive around and sign off on work done. Looks like the bg is either general contractor or home inspector. May need course work idk but looks like a good job.

 

[tino]

Curious. Are home inspectors in TX licensed by the state and are they required to be licensed general contractors? Both are the case in NC.

Yes, In Texas you get licensed through TREC( Texas Real Estate Commission) which also license Realtors. Licensing requirements have relaxed in past 10 years and there are lots of newer inspectors. But I find it funny or (sad), in entire real estate transaction, inspectors get the least amount of compensation and have the highest amount of liability.

 

[spittman]

Check with TALCB for current steps. When I first started my training (back in late 90s), I took the wrong steps and almost got denied. Back then I took the classes first, then I applied for a trainee license. The rules stated that I should have applied for a trainee license first then took the classes. There was also a time limit for the classes and the trainee license before applying again. You'll want to see the rules about having a sponsor as well.

 

[Bob Ipock]

Good advice!

 

[Diego Lopez]

inspectors get the least amount of compensation and have the highest amount of liability.

I dare say you are wrong about the above quote. Im an appraiser and licensed HI and my company does both. I can tell you with certainty the appraiser has way way more liability. Not trying to be argumentative, just giving the facts.

As to your question, I recommend doing both until you have been in the appraisal business long enough that you are making a good living from it and have confirmation that you like it / can get enough business to live off.

 

[J Grant]

But I find it funny or (sad), in entire real estate transaction, inspectors get the least amount of compensation and have the highest amount of liability.

Appraisers say the same thing about ourselves. So why would you trade one thing for the other - home inspectors the liability at least is limited to - the homeowner or buyer.?

In appraisals add on top of a homeowner or borrower, the lender or client, a laundry list of intended and sadly, unintended users/investors and govt/federal agencies.

It is not just liability but more bout pressure and scrutiny - the appraisal itself may not be that difficult, but what comes afterward can be . Such as your appraisal/value gets challenged from lender /client/parties, or a client stops sending work because you came in "low, or a reviewer who reviewed the appraisal disputes your results etc. This aspect is rarely explained to or understood by those looking to enter the field .