The Difficulty of becoming an Appraiser Today

[ReadyFreddie]

Hi I am newly licensed appraiser and wanted to state my experience and opinion on becoming an appraiser in todays time and market.

First the current model of entry into getting licensed is antiquated and terrible. The quality and range of your education is dependent on your supervisor. And just because someone can do the job does not mean they can effectively teach the job. If your supervisor gives you only the "cookie cutter" appraisals and teaches you in only the methods you need to pass the test you will get your license but won't know enough to compete in the job market. All you will know well is paired data analysis and a one trick pony can't make a show. On that note, the supervisor may never teach you any marketing skills beyond getting on AMC panels. As of right now with the current slump in inventory no AMCs are adding you to their list and even if they do you won't receive or win any bids no matter how low you go. Add in that while you are learning you make practically nothing.

Once out in this world of appraisal with low volume you don't have the option to do AMC work because you can't get it and you can't get clients because you were never taught how to get other clients. If you want to do the appraisals that a lawyer needs for the different areas in it is required in the legal system you have no foundation for this work as you learned only to write appraisals for lending purposes. Any change from lending work puts you even further behind since, at least from what I have been told, it is a different animal.

Gone are the appraisal firms that would bring in someone new and pay them to type up reports and learn the business. That is mostly not needed anymore since technology has allowed appraisers to write reports faster and with less effort. With this reduction in support staff and the government putting the AMC in the middle why would someone want to start an appraisal firm. You can fill in the bulk of statements by clicks or various forms of cut and paste in the report software and the AMC handles front and back end management.

Any advice for getting up and running in this business and broadening my analysis tool box would be greatly appreciated. I don't want this career to die on the launch pad.

 

[George Hatch]

I worked for other people for 7 years. That's how I built a marketable reputation that carried me when I went solo. I usually worked for more than one at a time in order to stabilize my income. When I say "marketable" I mean that to say I have never actively marketed myself and have always worked by referral.

 

[Surf Cat]

 

[CGinMN]

Your education and career and business development are entirely on your shoulders. Starting a business and finding clients, especially when you’re green and especially in the current environment, is not easy. They key is to keep your personal expenses very low, or having a spouse who can bear the financial burden for the first 5 years. There will be opportunities going forward. Find one or more appraisers close to retirement who have good direct lender clients and make them an offer they can’t refuse. Be willing to relocate to a rural area where there is a need. Demographics are in your favor my friend.

 

[J Grant]

Hi I am newly licensed appraiser and wanted to state my experience and opinion on becoming an appraiser in todays time and market.

First the current model of entry into getting licensed is antiquated and terrible. The quality and range of your education is dependent on your supervisor. And just because someone can do the job does not mean they can effectively teach the job. If your supervisor gives you only the "cookie cutter" appraisals and teaches you in only the methods you need to pass the test you will get your license but won't know enough to compete in the job market. All you will know well is paired data analysis and a one trick pony can't make a show. On that note, the supervisor may never teach you any marketing skills beyond getting on AMC panels. As of right now with the current slump in inventory no AMCs are adding you to their list and even if they do you won't receive or win any bids no matter how low you go. Add in that while you are learning you make practically nothing.

Once out in this world of appraisal with low volume you don't have the option to do AMC work because you can't get it and you can't get clients because you were never taught how to get other clients. If you want to do the appraisals that a lawyer needs for the different areas in it is required in the legal system you have no foundation for this work as you learned only to write appraisals for lending purposes. Any change from lending work puts you even further behind since, at least from what I have been told, it is a different animal.

Gone are the appraisal firms that would bring in someone new and pay them to type up reports and learn the business. That is mostly not needed anymore since technology has allowed appraisers to write reports faster and with less effort. With this reduction in support staff and the government putting the AMC in the middle why would someone want to start an appraisal firm. You can fill in the bulk of statements by clicks or various forms of cut and paste in the report software and the AMC handles front and back end management.

Any advice for getting up and running in this business and broadening my analysis tool box would be greatly appreciated. I don't want this career to die on the launch pad.

Sorry to say, but there is not much of a career left now for a res license with Fannie and Freddie reducing the number of appraisals they use and the entrenched AMCs taking a cut out of a fair amount of res work on the lending side - Non AMC lender and private work is difficult to get as a newbie -unless you plan to get a cert gen license. I don't know why you want to pursue this, though there are county assessor jobs available in some locations, and sometimes, they will hire a newbie and train them.

PAREA exists now but not sure if that is the path you want to take either wret the education and experience - best of luck whatever you decide.

 

[Joe Flacco]

Your education and career and business development are entirely on your shoulders. Starting a business and finding clients, especially when you’re green and especially in the current environment, is not easy. They key is to keep your personal expenses very low, or having a spouse who can bear the financial burden for the first 5 years. There will be opportunities going forward. Find one or more appraisers close to retirement who have good direct lender clients and make them an offer they can’t refuse. Be willing to relocate to a rural area where there is a need. Demographics are in your favor my friend.

View attachment 87786

I would like to see that 55+ group broken down more. 55-65 and 65+.

 

[CGinMN]

I was in OPs position in 2011, came here to ask for help/insight on the prospect of getting back into the business. Everyone said that appraisal was dead and to run to another career. I said I could work for $500/week and make enough get by, and it would be worth it because at some point it would get better. One told me that I didn’t understand the basics economics of the current market, and for that reason I would make a terrible appraiser. Another told me to stay out of his profession if I was planning on working for $500/week. Probably both are dead or retired now.

I jumped in at a terrible time, worked my way from office assistant to senior appraiser, got my CG, built a business and never looked back. Is this time different? Maybe. But I remain optimistic because I know that no matter what they try to do, there will always be a need for good appraisers. We’ve already seen a lot of retirements and there will be more over the next 2-5 years.

 

[Mejappz]

Until you remove the unethical stakeholders from the equation there is no hope. TAF, the Appraisal Institute, etc. are responsible for the atrocious educational system. The pervasive practice of prioritizing expedience and cost over quality perpetuates a cycle where assignments are often completed by individuals lacking competency, ethics, etc., serving the profit margins of AMCs and lenders. Given this reality, caution is warranted in pursuing advanced courses until systemic changes are implemented.

 

[alebrewer]

I was in OPs position in 2011, came here to ask for help/insight on the prospect of getting back into the business. Everyone said that appraisal was dead and to run to another career. I said I could work for $500/week and make enough get by, and it would be worth it because at some point it would get better. One told me that I didn’t understand the basics economics of the current market, and for that reason I would make a terrible appraiser. Another told me to stay out of his profession if I was planning on working for $500/week. Probably both are dead or retired now.

I jumped in at a terrible time, worked my way from office assistant to senior appraiser, got my CG, built a business and never looked back. Is this time different? Maybe. But I remain optimistic because I know that no matter what they try to do, there will always be a need for good appraisers. We’ve already seen a lot of retirements and there will be more over the next 2-5 years.

Haha - $500 a week doesn't seem to terrible right now.

 

[CGinMN]

That would be like $700/week today, which is probably what you should expect to make in your first year, in this market.