Trust/Estate appraisers

[Doug in NC]

I welcome comments on trust and estate work. If I continue in the appraisal business, I've got to start working some new lines of business. I have done estate work before, but assignments have been limited to less than a handful per year. I need to figure out how to bulk up that volume. Any helpful advice would be appreciated. Thanks.

 

[The Warrior Monk]

We do plenty of this type of work. The majority of this type of work comes from attorneys (or paralegals), with some from CPAs. You'll have to find out who in your area handles such work and make contact with them.

FWIW, when you do this type of work, you may end up doing more complex work that you typically don't see. For example, one firm we do work for represents many of the founding families (been here since the 1640's/50's) who own farms, ag reserve, sand mines, and other oddball properties.

 

[Mike Kennedy]

DOUG - your private msgr is full.

1. contact the attorneys you have done appraisals for, ask for/obtain letters of reference or permission to use them as References.

2. develop a 30 second "Hook" statement....... WHO are you, WHAT can you do, WHEN...., and WHY do buz with YOU .......versus the other 500-1000+ local / regional Appraisers. NEVER OVER-SELL, STATE THE FACTS, GIVE THEM YOUR PERSONAL AND PROFESSIONAL WORD - AND KEEP IT.

3. get your business suits out of the cleaners, stack of buz cards, and MEET & GREET. NOTHING BEATS PERSONAL REFERRALS.

4. DO not make the mistake MOST folks make: ALWAYS................. ask for the order. Highly recommend offering USPAP Compliance Review on PRIOR Estate (and Divorce) appraisals, and SECOND OPINION Appraisal Review services in addition to Appraisals.

5. ALWAYS ask prior, existing, and NEW prospects......for PERSONAL REFERRALS......and ALWAYS send thank you notes.

6. UTILIZE existing appraisal files culling ADDRESSES of property owners - develop a 1 page SHORT, CONCISE, FLYER (local ad firm can help u .....or there are NO COST on-line websites which can guide you). SEND OUT 100 per week to SPECIFIC ZIP CODES. ( check divorce rates, and age/population demographics .....look for HIGH concentrations of divorces, elderly, and small business owners). USE same flyer in local weekly SHOPPER direct mail "newspapers". SEND the flyer AND an Introductory Letter to the EDITOR of your local WEEKLY/ MONTHLY newspapers.

7. MEET the Owners/Owner-Brokers of local real estate firms and DO NOT MENTION MORTGAGE APPRAISALS......- SELL THEM ON legal !!!!!

8. repeat ALL the above and TARGET Tax Accountants & CPAs within 1 hour drive.

9. LOCAL savings & loan, savings banks, credit unions, CONTACT the Personal Banking/ Private Banking, Personal Trust Department - HEADS. (smaller ones.......go meet the PRESIDENT).

10. ASK FOR PERSONAL REFERRALS.



http://www.consultwebs.com/clients/triangle-NC-estate-planning.html


http://estateplanning.ncbar.org/Estate+Site+Map/default.aspx


http://lawyers.nolo.com/states/north_carolina/cities.cfm


http://www.itxcellence.com/Voted-Le...eys+chapel+hill+nc/north+carolina+lawyer.html

http://www.lawyers.com/

http://www.lawinfo.com/

http://attorneypages.com/

http://www.appraisalpress.com/news/articles/straight_from_the_horses_mouth_how_to_sell_to_attorneys/

 

[Doug in NC]

I went after trust/estate several years ago and the bank guys told me they wanted appraisals in narrative format. Do you get this request as well? I could easily put together a form for private work, with lots of addenda and commentary to be equivalent to a narrative. I have not done a complete narrative before. Doing the first few would be a challenge until I got all of the right wording in the report. Because of the additional writing and addenda that I would provide, I think fee should be significantly higher than lender fees. I know that at least one local firm was charging 2/3 more for divorce type assignments (this was over 5 years ago). How long do you give yourself for turn time, considering a typical house appraisal in your market? I understand this work is typically much more flexible than lender work.

 

[Walter Kirk]

The AI form as well as other GP forms look more impressive that URAR forms. Most lawyers that I work for are impressed by a good looking bound report however they only read the transmittal letter.

 

[Couch Potato]

I like Mike's list. "Narrative" reports are a good idea, but I find they really like the AI Reports form for estate work. They typically don't want anything on legal size paper. They want the information to be easy to find and they want to feel confident in the report. In our market Doug, I find two weeks is a reasonable turn-time. That is enough time to thoroughly check the data. Often confirming sales is a longer process due to the effective date being several months (or even years) prior to the report date.

If you send an PDF report, use a real digital signature, not just a picture of your handwriting. Consult with you client on delivery format. Some will want paper, some electronic and others will want both.

 

[The Warrior Monk]

I went after trust/estate several years ago and the bank guys told me they wanted appraisals in narrative format. Do you get this request as well?

I don't know if anyone ever asked me to do these reports in a narrative format, but nearly all are. There are some instances where certain forms might work out for certain presentations, such as in land appraisals.

I could easily put together a form for private work, with lots of addenda and commentary to be equivalent to a narrative. I have not done a complete narrative before. Doing the first few would be a challenge until I got all of the right wording in the report.

It's easier than you think...take out a copy of USPAP and go through Standards 1 & 2.

Because of the additional writing and addenda that I would provide, I think fee should be significantly higher than lender fees.

You bet!

I know that at least one local firm was charging 2/3 more for divorce type assignments (this was over 5 years ago). How long do you give yourself for turn time, considering a typical house appraisal in your market? I understand this work is typically much more flexible than lender work.

All fees are negotiable. How much you charge will depend on many factors, such as your experience, your expertise, and supply and demand factors.

 

[ghrousseau]

I just did a few brief searches and found some conferences and CE events for CPA's that are open to other professionals. I would think attending events like these would give you a chance to meet and greet. Some of the tax professionals I have met hate to talk shop about their profession, but are very interested in gabbing about other fields they don't have a grasp on.

 

[Queen City Gurl]

Mike, as usual, you take the time to be so helpful ! I have posted on this topic, and gained some good advice, and came up with some on my own also. However.......

I have spent a great deal of effort over the the last 2 years trying to drum up non mortgage work, and non of my efforts have panned out. I have cold called on offices, only to leave a resume and cards with the receptionist. (wasn't able to set up appts with anyone) I have made calls.... I have emailed a nice letter and resume to lists of estate attorney's off the web.

I have tried all these measures, and have not gotten one bit of business from it. I am in a larger more competitive area, and it just seems impossible to find non lending work.

Mike, what did you mean by "sell them on legal" , not mentioning mtge appraisals to brokers??

 

[Kevin A. Spellman]

Go to a multi-million dollar second home market segment if it exists in your market and do a mailing. I receive one or two calls a week for gifting or placing a property in a trust or an LLC. Introduce yourself to the IRS agent that may review your market and or your reports. I met an IRS agent back in 1987 for my service area and she knows who I am. There is always the same question when I’m interviewed from a property owner. Will my work stand up to an IRS review. I have been using appraisal forms since 1987f or the private work and it works for me and no complaints from either the client or the IRS.

The only attorney work I receive is for litigation. In my area it is not the attorneys or the accountant seeking our services, it is the home owner. It could be the attorney and the accountants do not want to be exposed to a valuation service provider that could possibly fail to deliver a service. They want to keep there client relationship strong and not let a referral hurt an existing relationship.