Small Appraisal Practice

[LeePie]

I am wondering if anyone buys appraisal practices anymore and if so, do they buy small ones for modest prices? Any ideas out there? Tired in Montana.

 

[Terrel L. Shields]

The income is so pitiful, I haven't heard of one selling in the past 10 years, and most are priced at 1.0 -1.5 x annual gross.

 

[Tom Woolford]

What is there to sell? These days the only real asset a small shop has is the person with the license. Even a client list doesn't have much value since the buyer would have to be approved anyway, and they can buy a list for peanuts.

 

[Tim The Enchanter]

What is there to sell? These days the only real asset a small shop has is the person with the license. Even a client list doesn't have much value since the buyer would have to be approved anyway, and they can buy a list for peanuts.

I do NOT like this, not gonna click that.
But, I think its sad but true.

 

[JTip]

Depreciated value of the Win98 tower and monitor, inkjet printer with a 1/2 dozen cartridges and an open ream of paper.

Our value comes from within, not what surrounds us.......(pretty deep for 6am)

 

[The Warrior Monk]

The income is so pitiful, I haven't heard of one selling in the past 10 years, and most are priced at 1.0 -1.5 x annual gross.

Personally, I wouldn't pay anywhere near that for a small appraiser business; way too much risk. I would offer to to pay between 30%-50% of annual gross spread over a 3-5 year period. Buying that way insures that if there is really no business, then the seller gets nothing. Another reason for an offer of that type is that the small business will probably shut down anyway, at which point that business' clients will be looking for another appraiser anyway.

 

[Peter LeQuire]

It's a personal service business, There may be some value in accumulated information not available from other sources (as a data base of commercial lease information, for example) but other than furniture, books (perhaps), a res guy doesn't have a lot to sell.

Perhaps a well established residential appraiser could be cajoled into sticking around to lend her name and gravitas to someone aspiring to not have to depend on the GSE-linked business (as someone with an established local, non-lender herd of clients). (Or maybe I'm hoping some bright-eyed, bushy-tailed, aggressive young appraiser would leave my name on the letterhead, prop me up in a corner, come by and wipe my chin from time to time, and put me on an allowance because of my decades of experience, and scores of contacts.

 

[Bob Ipock]

No value but the phone #.

 

[CindyR]

Let's turn this question around and ask, have any of you forumites bought your appraisal business from someone else? Do any of you actually know of anyone who actually bought or sold an appraisal business?

 

[The Warrior Monk]

Let's turn this question around and ask, have any of you forumites bought your appraisal business from someone else? Do any of you actually know of anyone who actually bought or sold an appraisal business?

I know of mid-size appraisal firms selling a partner's interest. However, these tend to be firms that have been around for decades, tend to have and be run by designated appraisers (MAIs), and a diversified client base (lending and nonlending) that works with the firm (not dependent on any one particular appraiser). These firms are also making real money.