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Retiring From Appraisal: Tail-End Coverage+

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As with any and every business, the only components that have value in a business purchase are the hard assets, accounts receivables, and the Blue Sky/Goodwill of the company (or the intangibles)...

If a business has a client base that is loyal to the business, that has value. If there is no client base, there's only the hard assets.
 
I don’t think anyone’s arguing that in today’s appraisal profession client relationships really don’t exist. Some of us are lucky to have long-term clients that have stuck with us and haven’t sold out to one of the handful of massive appraisal management companies that control the market. Some of us still have a couple local professionals who have tried to keep that personal relationship in real estate alive. Similar to what every appraisal client relationship was 25 years ago. Those are really the only clients that are worth a damn of these days.

Folks that ran successful appraisal companies, 20 and 30 years ago, would most likely be out of business today. This used to be something that if you did a good job, worked hard, and had a little bit of business sense, and understood customer service, you could make a good living in. You could actually raise a family working in this profession, imagine that.

Sad to say, but none of those things matter when you’re working for class , clear capital solidify, etc.

Phil Crawford was right years ago when he started talking about they don’t want professionals, they want this to be a $25 an hour analyst job. That’s not really a conspiracy theory, that’s exactly what the large firms are advertising. I saw something yesterday where they put out a post asking why appraisers are only licensed in one state? You should be doing appraisals all over the country for them.
 
I was telling people in 2010 that if the AMC trend continued appraising might end up being a $10/hr job. AFAICT I was only wrong by the dollar amount. All other factors in an appraiser's technical competency being equal, nobody in the fee appraisal business is making as much money in 2025 as they were making in 2005. (PV/$1 wise, that is). That includes the CGs.
 
I think referrals go a long way. There are no guarantees but it at least gets you looked at.
 
Of course. But what gets looked at is the workproduct itself. Getting a referral but only returning a nominal workproduct isn't a productive strategy. We all understand that part.

The other half of my referrals come from my clients. I don't even know how many of my regular client relationships came about based solely on the strength of a appraisal reports I had performed for one of their competitors. IMO if you do good work that gets a lot of attention. If you solve their problem by taking on the hard ones that gets some attention; especially if you do that when business is booming and your competitors are avoiding those assignments because it's more profitable to do the easy ones.

If I'm chasing the relationship instead of the fee then it pays to appropriately solve the problem - even when taking the beating on the fee. Sometimes the problem in question is the difficulty of identifying enough comparables. Sometimes the analysis itself is more complicated. Sometimes just explaining your process is the hard part. Meeting an impossible due date is frequently the problem they need to have solved. It's not always about "complex".

I know none of this is in any way new or novel to you or most of our regulars. I'm just putting it out there again for the gallery.
 
Just curious why you’d retire your license but keep your SRA annual $636 dues. I think I’d do just the opposite, and stop paying SRA dues before I’d stop paying for my license.

It's $1030 every other year for a CG license renewal in CA. That also entails taking courses that used to be much less expensive, but now are getting more expensive as some past providers have dropped their cheap courses. So, it is about $600 for a set of courses. Then, it doesn't make sense to keep the license without insurance, and that can be between $460 for $300K minimum coverage and $1,300 for $2M/$2M, let's say $1100 for $1M/$1M or so (with LIA).

$1130. Licence 2 years
$2200. Insurance 2 years
$600. CE for 2 years
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$3930 for 2 years or about $2000/year

Also, if you really are going to do appraisals, you do have to worry about liability, - and California is a litigious state.

I have never gone around trying to get business, no phone calls or emails. If I had been highly motivated, I am sure I could have found some clients. But I was never that interested in spending my time on that. And especially now, I have better things to do. $2,000/year is $10K in 5 years - and with that I could buy a new powerful Apple Mac Studio, one good enough to build my own LLMs:


I figure my current Apple Mac Studio M2 Ultra with 64G will last me about another 2-5 years, depending.
 
So what's the cost to keep the SRA over two years? No AI CE required if you are in "retired status"?
 
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