Sale/Purchase of Appraisal Practice

[glenn walker]

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.

GH may be willing to train you in Commercial have you reached out to him ? Or at least be a mentor.

 

[Long Walk]

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

You are the man! Thank you much!

 

[Terrel L. Shields]

The last practice I know sold for $225,000 and included no real estate but included a couple of computers and such. It generated roughly $225,000 and the owner stayed to rubber stamp the trainee who bought it reports. No non-compete clause. He went out of biz in about six months after the seller left although he had his CR by then. The same seller then sold his new company which poached all of buyer 1's clients, but had to carry the note and ended up with it back. I think he just closed it during the crash years. Haven't heard of him since. He was stuffin' a married Mortgage broker for work and I think he became a mortgage broker.

 

[jim farrelly]

Opteon purchased Valuecentric for reportedly big money last fall.

 

[Zephyr999]

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.

Ever heard of BBG?
Past President of AI had his practice purchased...
CushWake doing same nationwide...though they are targeting ROW practices

 

[Zoe]

I know a guy who did it. He is still in appraising too, but it is like over the appraisal division of a very large bank. He had like 3 offices in TN. One east TN, one middle TN, one west TN. PM me and I'll give you his phone number and name. He is really good appraiser and did both commercial and residential appraisals out of his business. It was and still is (I think) called Statewide Appraisal Services. He said the big lender offered him so much money for a salary job that he couldn't refuse the offer. He sold it to some of his employees.

 

[Zoe]

Call the statewide appraisal services @ 901-382-2700 and ask for Kim. She can probably share some in's and out's that might help you. She is really sharp. She was previous owner's right arm before he sold out. I know them but never asked what the agreement was on the sell out. Agreements can have nuances in them on an ongoing basis for a business sale. You may get a voicemail, but let her know you are an appraiser and what you wanted to ask. She is sweet.

 

[Zoe]

Here is a link to the seller. He might not like me posting it but he is nice but can be rough. He is a big ole boy. I'll run if he contacts me. LOL

I have known him for ages. This is really old article.

Orman Reaches Top of Appraisal Profession With National Association Presidency - Memphis Daily News

www.memphisdailynews.com

My main point to you is he had many appraisers and worked both residential and commercial out of all 3 offices. I have not talked with Kim or Mike lately. I don't know how new owners have managed it. I am almost certain Kim is one of new owners.

I am certain almost every licensed appraiser that is over age of 40 knows Mike in Tennessee. Maybe over age of 30. I am purely speculating.
He did tons of education classes that were state approved and was also very available to any appraiser that ever called him with a question.

 

[Long Walk]

Ever heard of BBG?
Past President of AI had his practice purchased...
CushWake doing same nationwide...though they are targeting ROW practices

BBG has an office in Boston, but I didn't know how they had grown. That's news on C&W - I haven't found news of any purchases. Any of their purchases you could share info on?

And I had forgotten that Hopkins had been bought by Newmark.

I'm looking for info on buying/selling practices. Prices and sale terms above all else. And, a market-based understanding of what factors created value in the purchased practice.

 

[KYLECODY]

Im really surprised anyone would consider buying a "practice". Granted 90% of us are one man shows working from home. Even a large, well established "shop" is still one "low" appraisal from being a great company to a terrible company in clients eyes. Unless they are the only game in town I can't imagine lenders would just feed them order after order if they could call around to save money or move on once "value" was missed. Some people are interested in their files and data..?? That might of been helpful before that whole World Wide Interweb fad caught on.)