Starting an Appraisal Business

[TianaR]

Hi all:

I have been in the business for nearly 9 years and I am relatively young (34 years old). As of last year I received my MAI designation and am contemplating starting my own firm. I have spoken to many seasoned bankers and appraisers and most say I will be fighting an uphill battle. I'm from the NY Metro Area where the competition is very fierce.

I read an article from the Appraisal Institute stating that nearly 62% of the population is over the age of 51. I'm hoping that presents an opportunity for me in the years to come. As of now I'm unsure what are the best methods to try and grow the business. All advice is appreciated!

 

[JTip]

Good experience, young female (very good thing for business), highly prized MAI and still at the bottom of the totem pole. Like a shiny zinc penny in a bucket of old worn copper ones.
You didn't mention a speciality. Eminent domain pays pretty good these days althought the competition has become more prevalent. A female run business is a bonus when signing up for the panel.

Best of luck.

 

[Russ Kitzberger]

Sent you a PM.

 

[John Glass]

TianaR...let the naysayers nay. Opening my shop was the best move I have made.

 

[Red Flint]

Investigate the Small Business Administration offering in your area (federal SBA), they can be an excellent (usually free) resource to meet and talk with experienced people in business startups. They (should) ask or show you the basics of a business plan (minimum one year projected financial plan - worst case, best case) and a marketing plan. These plans are best to come from your thinking, so they can be adjusted based on three and six month intervals, and are critically important if stiff competition hampers your ability to reliably generate income commensurate with your skills, designation and experience.

Good luck!

 

[JamesRockford]

Eminent domain pays pretty good these days although the competition has become more prevalent.
A female run business is a bonus when signing up for the panel.
Best of luck.

I once worked for a firm that was minority and female owned and they got all the local county and city appraisal business they wanted.

I won't say the "bidding" was rigged but.....

They always seemed to underbid the lowest bid for a job by between $100 and $500.

 

[GregoryK]

Many jurisdictions have a set aside for DBE (Disadvantage business enterprise) or WBE (women owned business enterprise). All else being equal, they are given the contract, and many states have a requirement that DBE/WBE get a defined percentage of a given contract.

 

[sharktank]

What type of work are you going to focus on? In most industries, specialists outearn generalists by a wide margin.

 

[GregoryK]

Hmmm imagine potential competitors discouraging someone because of fierce competition. You have been in the business long enough to know what the competitive landscape is like. And it sounds you have what it takes. . . Ambition. At 34 and newly minted MAI - even if it doesn't work out for you, you gain valuable experience in the "front office" regarding management, bidding, contracting. Experience that is extremely attractive to other firms. Go for it!!!

 

[Blueprint]

Hi all:

I'm from the NY Metro Area where the competition is very fierce.
I read an article from the Appraisal Institute stating that nearly 62% of the population is over the age of 51.

Competition will always be fierce in NY Metro.

If you base your success/opportunity on "fierce competition and an oversupply of old appraisers", you are digging you own grave.

Desire & determination to be the best is the most profitable aspect of a NY Metro appraiser.

You can always move to the burbs. Many other places to appraise and live an amazing life.