The residential-to-commercial switch

[Financially Feasible]

Here's my new dilemna - every time that I want to start looking for a CG mentor (since I am now finished my QE), business starts pouring in. In order for me to get a mentor, I believe that I would have to either stop or bring to a screeching halt what I'm doing now (I'm a 1-man, residential-only shop) so that I could properly "learn" commercial/industrial/special purpose/other appraising.

For any of you CGs/MAIs/other who have taken on trainees - a couple of questions for you (and I'm starting this in a new thread since I doubt that I could find one thread with all of the same questions in the same thread!):

1.) Have you ever hired a residential-only appraiser as a trainee?
2.) If so, have you ever hired one that was leaving his/her own business (especially a 1-person shop)?
3.) Did you ever hire someone who wanted to concurrently run their own business while coming on as a commercial trainee with you? What was the result of that?
4.) Is it better to have some residential experience before going commercial or would you prefer a green trainee (I know that's a redundant question)?
5.) Have you ever hired a younger trainee who, at the time of their hire, was expecting their first child? Did that have any negative impact on their time as a trainee?
6.) I have several of my best clients (who I've had since I've started in the residential business) who have said that they would send their commercial orders my way if I ever got into commercial appraising - would that make me more marketable to a potential mentor (I can't see how it would hurt!)?
7.) Would having an SRA make me more attractive to a mentor? No thread hijacking here, please. :icon_mrgreen: My reason for asking this is that, IMNSHO, having an SRA, at the very least, shows SOME kind of committment to the profession... and not someone who is a "fly-by-night" trainee.

Any other pointers/suggestions/ideas/comments/etc are welcome.

 

[josephdifranco]

Ed,

I've never taken on a commercial trainee, but I made the switch over to commercial about seven months ago, I can give you some relevant information. I initially worked with an MAI part time for $25 per hour, doing mainly research, and going out on inspections. It was always with the intention that I wind up working there full time. I was eventually hired by another MAI full time.

This answers your question about wether a residential appraiser can get hired for commercial. I think it helped that I had four year and masters degrees to prove I could learn. In my area, the tendency is that the larger firms mainly look for college grads and they think the learning curve is longer to "unlearn" residential habbits. I can say that I'm finding the learning curve to be much longer than I expected, and there was less of a skills transfer than I thought. It was nice to at least know the local markets, local MLS system, and generally the priciples of appraisal starting out.

In the long run, I don't think anyone would want a part-time commercial trainee because of the aforementioned steep learning curve, my initial part time situation was only intended to be temporary.

My opinion on the clients situation is that if they hire you based on bringing in business, do you have any value to them if that business dries up? I'd feel safer if I was helping out an office that was already busy and well established.

Best of luck,

 

[Ken B]

Ed,

I've never taken on a commercial trainee, but I made the switch over to commercial about seven months ago, I can give you some relevant information. I initially worked with an MAI part time for $25 per hour, doing mainly research, and going out on inspections. It was always with the intention that I wind up working there full time. I was eventually hired by another MAI full time.

This answers your question about wether a residential appraiser can get hired for commercial. I think it helped that I had four year and masters degrees to prove I could learn. In my area, the tendency is that the larger firms mainly look for college grads and they think the learning curve is longer to "unlearn" residential habbits. I can say that I'm finding the learning curve to be much longer than I expected, and there was less of a skills transfer than I thought. It was nice to at least know the local markets, local MLS system, and generally the priciples of appraisal starting out.

In the long run, I don't think anyone would want a part-time commercial trainee because of the aforementioned steep learning curve, my initial part time situation was only intended to be temporary.

My opinion on the clients situation is that if they hire you based on bringing in business, do you have any value to them if that business dries up? I'd feel safer if I was helping out an office that was already busy and well established.

Best of luck,

Ditto

23456

 

[Vernon Martin]

I've never taken on a trainee, either. My two best clients are so fussy that they would have a fit if I assigned their work to a trainee. When I do need assistance once in a while, I subcontract the assignment to an experienced appraiser who has more competence in the subject property type or market in question, but I still closely manage the assignment.

 

[Michigan CG]

I think it depends. If I were to need help as a one person (two dog) operation I would want the person to remain self sufficient because work can sometimes be unpredictable.

But you could bring to the table established residential clients where you could do both commercial and residential. It could be a win win for both.

I think the bigger shops, and those with MAI's would want you to be a full timer.

I think that having the SRA is a huge plus.

The only thing that a small timer like me would worry about is what happens after you get the license? Do you now become my competition? The larger firms most likely don't worry about that.

 

[Kali the Boston Terrier]

Being a multi disciplined firm (commercial and residential), I find that part time commercial trainees...full time residential appraisers tend to be bad hires. 1) They are always distracted, one day there slow asking for more commercial work...next day they get busy again with residential and all your help either disappears or does a lousy job 2) If you train someone part time,and you are a small shop, once they figure out the difference between a hole in the ground and their ***...the leave for a large firm full time, before they ever become profitable 3)The training is not the part I find frustrating, I like showing residential appraisers a new way of looking at the appraisal problem and methodology...the problem is the first few months of them with their hands on their hips "...I don't know why you are doing that, I donlt want to knock on doors to find lease information..."

It really is a full time leap of faith, you are either all in or all not. You do not want to be in appraisal purgatory like I'm in (half residential/half commercial). It's better to do one thing supremely well, then many things half heartedly. I know its hard to walk away from the residential income stream, but if you are not happy with what you are doing the quality of your life will suffer IMO.

 

[Michigan CG]

I donlt want to knock on doors to find lease information..."

Yup, that would be the big one.

 

[Kali the Boston Terrier]

I really think that residential appraisers just have no idea how easy it is to gather raw information with a MLS, geocoding software, etc. Just last week I spent 6 hours gathering raw sales from a City just to be able to extract a GBA adjustment. Another 6 hours before that gathering lease data. 12 hours and the report is still not written.

 

[TC]

I think it's very hard to try and learn commercial while doing residential on a full time basis, two very different animals. I would suggest making a clean cut from res to start commercial, if you can afford the pay cut.

TC

 

[GCJim]

I think it's very hard to try and learn commercial while doing residential on a full time basis, two very different animals. I would suggest making a clean cut from res to start commercial, if you can afford the pay cut. TC

I 100% agree. Relatively early in my apprenticeship, I got an opportunity to work with a commercial appraisal firm (due to my background and previous residential apprenticeship and real estate experience.). I jumped at the chance. I eventually made a conscious decision to forego residential licensing to concentrate on the Certified General License, mainly because the opportunity presented itself and I was deeply into it. I suffered financially for quites some time, but I have no regrets (and I apologize to absolutely noone for my decision).

Commercial is an entirely different animal and mindset. It can take years AFTER General Certification to become competent in various types of commercial properties. If you really want to do commercial, assuming you have a great mentor lined up with whom you have a very good understanding, preferrably written), bite the bullet and just do it, as the commercial says.

Best wishes with it!