Real estate appraiser worth getting into as a side job?

[JJA]

I’m looking for some honest advice and opinions to see if this would be the right profession for me to get into. I work in a family catering business and enjoy it but I was looking at maybe venturing into becoming a real estate appraiser as well. I live in MN so the winter season is always a lot slower when it comes to catering because people just aren’t planning as many events, so I figured an appraiser job would help keep me busy during the slower time. From what I’ve read it’s a profession that can be done part time. I like to keep busy so I wouldn’t mind balancing both careers if that’s possible to do. I’ve always had an interest in real estate so I think I would find it fun and interesting. Is this something worse pursuing? I’m aware of the coursework and training needed. A licensed residential appraiser is the highest level I’d shoot for. A few questions I have:

Once you complete the coursework and become a trainee how hard is it to find a certified appraiser to work under to complete the 2,000 training hours?

Is the training all done physically with the appraiser at an office or is a lot of it done at home on my own time?

Would it be pretty easy to get hired on as a licensed residential appraiser at a company?

Are most of you driving into an office everyday or can a lot of the reports be completed at home?

When working for someone can I truly treat it as a part time job or isn’t that possible? Online makes it sound like that but I don’t know what to believe.

Thanks for the help, I figured this would be a good place for honest info. I know the main goal people have for this profession is to work independently but I’m more interested in working for a company as a side job to keep me busy. On the other hand I’m wondering if it would be worth it to go that route.

 

[Elliott]

JJA,
Check out the forum:

Newbies/Appraiser WannaBe​

Licensing and AMC/Lender Standards have virtually made the process a 7-year servitude.

 

[JJA]

Thank you I’ll check it out, didn’t even notice that forum.

 

[Hylopeeko]

Everything you asked is basically true if everything goes on schedule, but it is not that easy. I am not one to discourage, but it does take alot of time and effort. Since you are in catering, did you ever consider using your resources to start another business in that field? Maybe an online something or other to supplement you in winter months.

But like I said you can get into Appraisal if you choose. Just go for it!

 

[Sadie]

JJA,
Check out the forum:

Newbies/Appraiser WannaBe​

Licensing and AMC/Lender Standards have virtually made the process a 7-year servitude.

My trainee has completed her hours in about 2.5 years. She is waiting to hear back from the state for a file to be audited, then, she can sit for the exam. BTW, back in the day when I was first licensed, I had my hours in in just over a year, and that was a slow time in the appraisal business.

 

[Digger88]

your chances of being hired are extremely thin. have you checked for trainee jobs where you live? there are none here.

 

[A K]

It is worth getting into and if interested in appraisal you should try.

The only issue with your plan is that real estate slows down in the winter the same as your catering business. So appraisal in winter and catering in summer is not really going to work.

 

[Salty]

In my opinion, the return on investment is not worth it especially if it will be part time. Also if you are not a full time trainee it might take even longer to get the hours. I think the easy appraisals are gobbled up by staff appraisers for the most part leaving us independent appraisers with the difficult ones. So you should assume you will get few easy ones which means more time for each fee. I guess what I mean is you should try to figure what you could realistically earn in your area part time. Then think is it worth 2-3 years working as a trainee making minimum wage.

Maybe get a real estate license first and see how being an agent is. A big part of appraisal success is being able to market yourself. If you are good at that I think there may be more money on the brokerage side of things.

 

[PhiloFarnsworth]

All good advice here regarding becoming an appraiser. Given all that, you should also check out what your fixed costs in MN would be so as to decide how "side" its worth making the business. While the nice thing about this business is that such fixed costs are relatively low, they can run into several thousand dollars or more; MLS dues, local RE association dues in addition for some places; E&O insurance, CE and license fee costs and don't forget the inevitable need to pay a yearly fee for "support" from your appraisal software provider (I put it in quotes as it is actually required in order to use most submission services of AMC's) and the small, extra services like Court House Online if your local county is still in the dark ages (but better than a trip to the courthouse). I would suggest cheaping out a bit on all the technical gadgets available for appraising (bluetooth cameras with built in HD's, separate tablets for on site work, etc., etc.), you probably won't need it for side work and a one man shop. Hell, I've forgotten my expensive camera and done quite well with my phone in a pinch (the only problem is that my older iphone doesn't have a wide angle lens, very helpful for interior).
Once you get an approximation of what your start up and yearly recurring cost might be (don't forget typical office stuff), you will have to find out what your largest single layout will typically be, gas and depreciation on your car. This, at least, is an operating cost, and is proportional to your income. But consider that, if you are in a rural area (and MN is full of them), this may greatly increase the costs of each appraisal. Travelling to the subject may not be too bad, but you may have to travel half a day to observe enough comps to bracket the subject in the most important features. Starting out, AMC's will often try to pressure you go low on your fee and it seems the lower income, rural areas seem to have lower "customary & usual" fees as compared to many cities.

 

[ZZGAMAZZ]

In my opinion, the return on investment is not worth it especially if it will be part time. Also if you are not a full time trainee it might take even longer to get the hours. I think the easy appraisals are gobbled up by staff appraisers for the most part leaving us independent appraisers with the difficult ones. So you should assume you will get few easy ones which means more time for each fee. I guess what I mean is you should try to figure what you could realistically earn in your area part time. Then think is it worth 2-3 years working as a trainee making minimum wage.

Maybe get a real estate license first and see how being an agent is. A big part of appraisal success is being able to market yourself. If you are good at that I think there may be more money on the brokerage side of things.

How can staff appraisers comply with appraisal independence regs?