Sale/Purchase of Appraisal Practice

[J Grant]

That's kind of what I'm thinking about. I can provide the back office: billing, collections, publishing, internal reviews, insurance, and all the other stuff. Do that from one location, with small offices scattered so nobody drives too far. Imagine the bench strength with that doing a big strip takings job.

I don't know anyone that has done that and am looking for someone who has done it to help me think through structure and how to sell it to appraisers. Proof concept in my state. If it can work, it may be able to scale it to all the New England states.

This seems different than your original post / Correct me if I am wrong, but the above sounds like you want to collect a % of a local firm's business in exchange for you providing back from a remote location, their office support - and you want to sell that concept to appraisers rather than you purchasing appraisal firms?

 

[Long Walk]

I would assume a non appraiser could be the business owner, as long as they did not pass themselves off as an appraiser/do the appraisal

I was speculating, that for sale purpose an office employing a staff of appraisers with enough business to keep them busy would have more worth $ than a single practice office.

I think it might depend on existing firm debt, fixed cost (staff, office, etc). In New England, a big commercial office (not CBRE or a national) is about four appraisers. It takes a lot of work to keep a staff like that busy. So, maybe a bigger shop a heavier lift to buy and operate than a single-appraiser shop.

 

[Long Walk]

My buddy used to work at irr when he was training and his office got bought. So seems to me like opportunity for that in commercial.

I know don't have a business that someone would buy though.

IRR continues to be the case study everyone uses on how to build a national firm. I don't know how they selected offices to buy, and I think they were done buying 15-20 years ago.

Figure out how to turn data analysis into a paying report, and I will come work for you!

 

[Long Walk]

This seems different than your original post / Correct me if I am wrong, but the above sounds like you want to collect a % of a local firm's business in exchange for you providing back from a remote location, their office support - and you want to sell that concept to appraisers rather than you purchasing appraisal firms?

I think there's a lot ways to skin that cat. When I got into appraising, I cold-called potential supervisors to see who would supervise and to see if anyone wanted to sell. Based on that experience, not many appraisers give much thought to selling or buying practices.

But, imagine you wanted to scale your service offerings and your geography. How would you work portfolio clients? How would you offer more services than appraisal (think of that as hedging against slow downs)?

Providing back office is one way to do it. Buying and operating practices as part of a whole is another. There are others.

 

[glenn walker]

A Commercial AMC is really what your plan is which is fine we already have quite a few but now you need to spend 6 months doing nothing but talking to see if CGs in Your State are willing to accpet engagements. Outside of a AMC all you did was create a office management operation which is not a profit center. I assume even in your States you guys have some Cushman and Wakefield type operations. Those appeal to CGs who do not want to operate independent fee shops and who want their workflows manged for them.

 

[Joe Flacco]

IRR continues to be the case study everyone uses on how to build a national firm. I don't know how they selected offices to buy, and I think they were done buying 15-20 years ago.

Figure out how to turn data analysis into a paying report, and I will come work for you!

If things get super slow next year then it might be more likely that I end up going to work for you.

 

[glenn walker]

CW Has two Offices in New Hampshire and Offices in all the New England States. I think they beat you too this concept many years ago.

 

[glenn walker]

If things get super slow next year then it might be more likely that I end up going to work for you.

Why would business get slow for you all your charts and graphs show Maryland is steady as a Rock.

 

[alebrewer]

That's kind of what I'm thinking about. I can provide the back office: billing, collections, publishing, internal reviews, insurance, and all the other stuff. Do that from one location, with small offices scattered so nobody drives too far. Imagine the bench strength with that doing a big strip takings job.

I don't know anyone that has done that and am looking for someone who has done it to help me think through structure and how to sell it to appraisers. Proof concept in my state. If it can work, it may be able to scale it to all the New England states.

Reach out to Michael Hobbs at PahRoo Appraising. He's out of Chicago - I think he's done that a bit.

 

[Joe Flacco]

Why would business get slow for you all your charts and graphs show Maryland is steady as a Rock

I think you are confusing market conditions or residential appraisals and market conditions for real estate. Two very different markets.

But I'm not having a terrible year anyway.