Pros and Cons of National Appraisal Companies

[rijman]

For commericial appraisal work I am interested in feedback regarding the pros and cons of working for a national commercial appraisal company such as IRR. I would expect the possibility of more stability with access to work from national clients, but not sure how the pay structure or other issues such as turn times, etc. compares with smaller local companies.

 

[PL1957]

For commericial appraisal work I am interested in feedback regarding the pros and cons of working for a national commercial appraisal company such as IRR. I would expect the possibility of more stability with access to work from national clients, but not sure how the pay structure or other issues such as turn times, etc. compares with smaller local companies.

I wouldn't call IRR a true "national" firm. They're more a loose conglomeration of firms that cooperate when it suits them and compete when it doesn't. The only true national firms are CBRE and C&W, with Grubb & Ellis in a start-up stage, trying to get there.

 

[Lost Cause]

I agree with PL, and working for an IRR-member appraisal firm is probably much more similar to working for a local commercial appraisal firm than working for Cushman & Wakefield or CBRE would be.

 

[Pittsburgh Pete]

I agree with PL, and working for an-IRR member appraisal firm is probably much more similar to working for a local commercial appraisal firm than working for Cushman & Wakefield or CBRE would be.

Actually it's probably somewhere in between! With national connections IRR shops tend to get a greater share of more "signficant" property appraisals than do local shops. Our local IRR shop is well-respected and gets more interesting assignments than we do--generally speaking.

 

[Kali the Boston Terrier]

Actually it's probably somewhere in between! With national connections IRR shops tend to get a greater share of more "signficant" property appraisals than do local shops. Our local IRR shop is well-respected and gets more interesting assignments than we do--generally speaking.

Ours isn't that great, but don't forget about PGP, or KPMG, they are getting a better footprint everyday. But I'd agree with PL only two true nationals are CBRE and CW. That being said, the Nationals tend to get better portfolio assignments, and you will get the oppurtunity to work with projects that tend to require ARGUS, other appraisal disciplines, FASB type work, and Federal and State Gov't work. Diverse assignments and great experience are some of the hallmarks of national stuff, plus you get their database...which is far better than anything on CoStar or any MLS or personal database. Good oppurtunity if you are just starting out, or working toward your MAI.

Drawback is that after you are established, 1) there are very few windfall fees. 2) Most of your personal goodwill is assimilated into a larger firm and their fee structure. BUt then again if you are a good appraiser, the leaner times you might be able to stick it out at a larger firm while you might have drowned on your own. I personally have always been concerned about point 2, I have worked very hard at my niches, my reputation, and have been able to be extremely successful without designations on just my name and reputation. I'm afraid to be just another number at a larger firm, and that the action of the larger firm may drag down my name with some clients. Plus, getting brought in because of your name may get them a few assignments, but that also means your are at the higher end of the salary range, first one out when times get lean unless you are the manager.

 

[stonecw]

Former IRR Appraiser

As a former IRR guy, I can tell you that IRR in particular is very much like working for a local fee appraiser, but with the added opportunities to do work on a much wider range of properties and locales (including portfolio jobs) than most local shops take in.

I wouldn't agree that their database is better than anything CoStar has (in fact due to a poor user interface it has become a bit of a joke or a curse in some offices), but their Marketpoint report writing software is fantastic. It has a steep learning curve, but once you've got it down, it can shave hours off your writing time and is extremely flexible.

Most IRR offices seem to keep the feel of a local shop too, but with the benefits of a national firm (healthcare, 401K, etc.). As each shop is an independently owned franchise, pay structures vary from shop to shop.