Small Appraisal Practice

[Mr Rex]

I suggest putting everything out front early on a Saturday morning and a large "yard sale" sign facing both directions.

 

[LeePie]

Thank you all for the replies. I figured as much, however, my husband needed some convincing (not just from me)

 

[Tom Woolford]

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?

31 years ago I DID buy my business. He had pretty well lost all the clients and only one small mortgage broker was left. So, I got 1 client, a couple chairs, filing cabinets, an outdated computer (TRS-80 for those who remember), a decrepit IBM Selectric typewriter and some forms. I payed him a small fixed amount every month for a year. I also got to work under his R.E. Brokers license until I got mine. Certification hadn't been thought up yet. These days, I probably wouldn't do that.

 

[Deleted member 134708]

I would go get a bunch of licensed, (not certified or trainee appraisers) and do a 70/30% split if you have to sign report as supervisor or 80/20% if can "inter-office transfer" and appraiser can do report.

This can all be done remotely, don't need an office. Just forward orders to these appraisers on a rotation. Can use a cloud service to transfer files back and forth for signature.


If you're on your way out anyway, you got E&O.

Edit: Require a $500 fee per appraiser to come aboard. This fee is for use of your 1004 templates, boiler plates, quicklists, data base etc.

 

[miktay]

I bought one in SoCal back in 1995 for the cost of the office furniture and supplies. Profitable customers at the time and the bossman just wanted to leave the state.
I sold it in 2006 (because I wanted to leave the state) for under $10,000. I regret selling for so little.

 

[Terrel L. Shields]

Do any of you actually know of anyone who actually bought or sold an appraisal business?

The last two I can think of went out of business - The first was sold by a local MB mill. He sold for $250,000 (circa 2000) which was likely close to 1.5x annual receipts and he stuck around to rubberstamp reports as the buyer was basically an unlicensed trainee. They did not have a non-compete clause so as soon as the buyer got his license, the seller went right back to work, same locale, and then (reportedly) sold that to another trainee for $100K. He co-signed the note and when trainee went kaput he took the company back saddled with debt. Served him right. His reports were garbage. He then changed hats and became a mortgage broker.

 

[bnmappraisal]

Thank you all for the replies. I figured as much, however, my husband needed some convincing (not just from me)

I got into this business almost 10 yrs ago now with the "impression" that I could build up a firm with other appraisers working under me, etc ... then I actually got into this industry (10 yrs ago next month) and over the last 10 yrs, everything hit the fan and it's been the roller coaster we've all been on. Sadly, I don't see ever being able to sell my "business" but I still love owning it!
All the best to you LeePie

 

[Bob Ipock]

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 only know of one sale over the last 25+ years. I knew both buyer and seller. The only interested party bought the business with owner financing. The buyer did not make it for 6 months and defaulted on the financing agreement.That same appraiser had his license revoked, for what reason I am not sure.

 

[Allen Bottiger]

Where in Montana are you located?