Slowdown?

[CaliforniaSD]

Hello,
I am a newbie to this forum, thank you for having me. I'm a Certified appraiser in his 30's based in San Diego that has decided to commit 100% of my time to appraising as an independent contractor. Is anyone else experiencing an extreme slowdown in appraisal assignment requests and bids? I am registering with appraisal management companies every day from the BREA AMC list. I have a couple clients that throw me a bone every once and a while but it seems like I am trying really hard to expand my client base and I have been rarely receiving assignments. Any recommendations on how to obtain more work? Thank you for reading my post and I would really appreciate any constructive feedback. Thanks!

 

[glenn walker]

Hello,
I am a newbie to this forum, thank you for having me. I'm a Certified appraiser based in San Diego that has decided to commit 100% of my time to appraising as an independent contractor. Is anyone else experiencing an extreme slowdown in appraisal assignment requests and bids? I am registering with appraisal management companies every day from the BREA AMC list. I have a couple clients that throw me a bone every once and a while but it seems like I am trying really hard to expand my client base and I have been rarely receiving assignments. Any recommendations on how to obtain more work? Thank you for reading my post and I would really appreciate any constructive feedback. Thanks!

Hate to say it but San Diego has a lot of appraisers and I would sign up with very AMC you can make contact with. It's now a numbers game and you want to get ahead of the curve. Many old timers will finally drop out and retire as their few direct lenders stop sending them orders. Thats one advantage a newer person has in California is they have not become old-bitter and burned out . It can be a great business if you keep your head cleaned out from negativity.

 

[CGinMN]

The time to expand your business was when the market was in a frenzy in 2020-21. Unfortunately your value to potential clients has diminished drastically, which was predicable. All I can say is work to diversify your business away from AMCs as much as possible and you will be in a better potion to withstand market downturns.

 

[J Grant]

Hello,
I am a newbie to this forum, thank you for having me. I'm a Certified appraiser based in San Diego that has decided to commit 100% of my time to appraising as an independent contractor. Is anyone else experiencing an extreme slowdown in appraisal assignment requests and bids? I am registering with appraisal management companies every day from the BREA AMC list. I have a couple clients that throw me a bone every once and a while but it seems like I am trying really hard to expand my client base and I have been rarely receiving assignments. Any recommendations on how to obtain more work? Thank you for reading my post and I would really appreciate any constructive feedback. Thanks!

If you are a newer appraiser to the business and this is your first slow down you might want to rethink the 100% of your time to independent contractor - San Diego is one of the worst places (I have a friend there who just retired as an appraiser ) - Cali tends to have lower sale volume due to their property tax structure so when refinances dries up it just dies. You can keep applying to more AMC;s and lenders and of course you never know if one has more orders for you. But overall, when the market slows down they all slow down.

If you have a side income to supplement then use it to help pay the bills. You can write to every RE agent on the MLS and see if they need any help with listing appraisals. But short of moving to an area with a shortage of appraisers relative to population, which often means rural or a state/region that is not too appealing, there are no easy short term options. Some appraisers go to work for the county assessor office and like the steady salary/benefits

 

[MrLA]

Don't let Glenn be a naysayer. It's possible to market toward new clients at this time, but prepared for them to lowball you. It's your personal choice to do them at those lower fees. What can you expect? $300 to $350. I personally would not do them, cause I have a lot of pride. But, I might take them just so that my guys can survive and just give them like a 80% cut on it. It's a personal choice that you have to decide on. I'm also experiencing a lower volume. Last week, I had like 15 come in but I do have a team of 5 including myself. Do what you got to do at this point, everyone else is. I still have a minimum base average for myself, but I will let my guys take the lower fees.

 

[glenn walker]

If you are a newer appraiser to the business and this is your first slow down you might want to rethink the 100% of your time to independent contractor - San Diego is one of the worst places (I have a friend there who just retired as an appraiser ) - Cali tends to have lower sale volume due to their property tax structure so when refinances dries up it just dies. You can keep applying to more AMC;s and lenders and of course you never know if one has more orders for you. But overall, when the market slows down they all slow down. If you have another side income to supplement that is at least helpful with $. You can write to every RE agent on the MLS and see if they need any help with listing appraisals. But short of moving to an area with a shortage of appraisers relative to population, which often means rural or a state/region that is not too appealing, there are no easy short term options. Some appraisers go to work for county assessor office and like the steady salary/benefits

Thousands of appraisers in CALI now trying to get jobs with assessors etc. Fortunately for you are thousands are also quitting or retiring. To jump start you have to get on as many AMC list as possible and yes I know that is Heresy to older experienced appraisers but there are many in San Diego that pay good fee's.

Once you have your base built to pay bills and make a profit then spend a half day a week marketing or trying to get some direct lenders. When I was young I hit a slow point and I under cut one entire small city in fees and within 12 weeks two old timers screamed at me and gave up. Its a battle to keep balanced but in large Population centers like San Diego you have to be in front of the pack. Hang in there 24 months and my guess half the ones 60 or over will have retired or quit. They are too stubborn to accepet the fact their business models have failed as if they were any good why would they quit or retire.

 

[glenn walker]

Don't let Glenn be a naysayer. It's possible to market toward new clients at this time, but prepared for them to lowball you. It's your personal choice to do them at those lower fees. What can you expect? $300 to $350. I personally would not do them, cause I have a lot of pride. But, I might take them just so that my guys can survive and just give them like a 80% cut on it. It's a personal choice that you have to decide on. I'm also experiencing a lower volume. Last week, I had like 15 come in but I do have a team of 5 including myself. Do what you got to do at this point, everyone else is. I still have a minimum base average for myself, but I will let my guys take the lower fees.

A nay stayer I am trying to get him/her a jump start . You posted you are now so slow in California and are looking to go to Texas. How did that happen in only 10 weeks ? You used to say you did 60 to100 a months
now its down to I gotta get to Texas. Which by the way has been flooded by CALI appraisers in the last three years. PRIDE does not put food on the table. I am blessed as I am a Trust Fund Baby so I dont have to try and re-locate to Texas or some other State but to a new person its all about getting that ball rolling.

 

[J Grant]

Idk the age of the OP or what other options they have.

But if the only way to get more work is to undercut already low fees, what kind of future will that be? Because what happens when the next guy or gal undercuts you? And the problem with SD is there just is low volume there, my friend worked there for years as an appraiser and always had less volume then I did. And fees stink there unless one is well connected.

If someone can survive on 2 AMC orders a week at $ 200 each then hang in there. Because between waivers and low fees for desktops and hybrids that is where a fee to win an order in a place like SD might end up - unless one can get on direct lender lists or get specialized private work - which is often out of reach for a newer appraiser.

Some people like Mr LA are hustlers who can run a shop get builder work but that is the exception rather than the norm. If you were a hustler you'd know it by now...they are born not made.

 

[George Hatch]

The market for services doesn't care about your pride. Or mine or anyone else's.

If the OP has been with a high-quality fee shop where most of the appraisers are CRs and the principal has top tier clients then they will probably do better for themselves by staying there. If they're with any of the other 98% of supervisors consisting of donkeys whose business plan consists of profiteering off the backs of poor trainees then they'll do better to go solo and undercut the fees. That's because it'll only be a matter of weeks before they get starved out of their situation anyway.

When taken to it's logical conclusion a declining level of volume means more heads competing for fewer assignments, which can only result in lower fees. If you won't do it then the clients will just find someone else who will. The only people who can afford to engage in "I won't work for less than what I've been getting" are people who can afford to not work. Most of the tough talk about holding the line no matter what is just that - talk.

If your supervisor HAS been running a trainee shop then you shouldn't even feel bad about undercutting them because they're the FIRST appraisers who deserve to lose work to their trainees. That's what they get for being greedy and stabbing everyone else in the back.

 

[glenn walker]

Idk the age of the OP or what other options they have.

But if the only way to get more work is to undercut already low fees, what kind of future will that be? Because what happens when the next guy or gal undercuts you? And the problem with SD is there just is low volume there, my friend worked there for years as an appraiser and always had less volume then I did. And fees stink there unless one is well connected.

If someone can survive on 2 AMC orders a week at $ 200 each then hang in there. Because between waivers and low fees for desktops and hybrids that is where a fee to win an order in a place like SD might end up - unless one can get on direct lender lists or get specialized private work - which is often out of reach for a newer appraiser.

Some people like Mr LA are hustlers who can run a shop get builder work but that is the exception rather than the norm. If you were a hustler you'd know it by now...they are born not made.

George Good Advice from the Sage of San Diego