How to become a successful appraiser?

Are you in the US?

If yes, read on:

Successful as in good or as in making money?

The latter, you need many clients. You need different type of clients.

Most appraising work is done for mortgages, where the biggest hurry and lack of respect for appraisers exists.

If you're serious about being successful, become an appraising shop and an appraisal management company.

Have divorce lawyers and estate attorneys as clients. Have small banks (the type that can hire appraisers directly) as clients.

The AMC will have the large banks as clients.

Become general certified, and specialize in something a bit rare, like oil rigs... I'm betting there's not a lot of oil rig platform appraisers but the one who exist can charge $50k just to say hello.

Hire general certified appraisers. Get old, about to retire ones, who can't market, if you can't do better, but get those... A lot less regulation and competition. A lot more money.

Be good... at math, at research, at thinking...

Invest in technology... If you do residential, the least you could do is reprogram the ACT software, or whatever software you use so comps 4-6 show right after comps 1-3.

Make friends with zoning department people and ask them questions. Know the zoning book of the biggest city around you well.

Get a website for the appraising business, one for the AMC... Stay away from alamode, if you can afford it. If you can't, change the template text... on all pages... The text their sites come with is pretty good, considering, but 7,587 other appraisers have the very same text on their sites.

How do you feel about litigation? You should find a way to be part of that... (That means you've proven to everyone that you know your stuff and are good at research... It could also mean you do well under cross-examination, but it's not required.)

Do it once, just so you can say you've done litigation appraising... it will impress the pants off of your prospects, unless they're in the mortgage business, case in which they only care that you can deliver fast.

Most appraisers I met can tell you the difference between a 150,000 ranch and a 180,000, why one is more by 30k. Most appraisers can't tell why a property is worth $1,500,000 and another one is worth $1,750,000. Learn to tell the difference and you can specialize in that.

Don't forget to charge double (at least) because you'll get it.

Don't forget that your fee has 3 components: expenses, difficulty of property to be appraised and risk. Most appraisers forget about risk, so they don't charge enough.

Large properties in affluent neighborhoods are more interesting to appraise and make you more money. Commercial properties, industrial properties, apartment buildings are more interesting to appraise and they make you more money.

They also require more skills and knowledge.

Learn to say no to jobs that drain time and energy. After you do 30 or 40 appraisals, you're going to know which ones they are... All you need is the ability to say No.

It's easier to say no if you have many clients and they come from different industries.

Join the appraisal institute, get your MAI... people who don't know how to judge an appraiser (and most do not) will give you extra credit/the benefit of the doubt because of designations.

Plus, some people are snobs and will only hire you if you have as many designations in your industry as they have in theirs.

Position yourself well... Don't compete on price or speed. Some idiot's going to charge $25 less than you all the way into bankruptcy (his/hers and yours).

Have a growth plan. Set aside half a day a week to work on your business from the very beginning. Don't confuse cash flow with profit. Don't forget that you're an employee of yours. Calculate profit only after you pay yourself whatever you'd have to pay someone else to do whatever job you do (in the beginning, bookkeeper, receptionist, and other such jobs fall onto you).


Are you already licensed? If not, move to a state where the average age of appraisers is high (if most appraisers are going to retire in 5 years rather than 18, you're better off, don't you think?).

If you're by yourself, don't accept jobs all over the place... pick a smallish area and be the specialist in that area.

If you have appraisers working for you, specialize them in different areas... There'll be some overlap, but it save time (theirs) and money (yours) in research and driving.

Amazon.com: Double Your Profits: Marketing Ideas,... is a book that you might find useful.

According to me, though one person may well come when the price where they also have to understand that value is difficult to succeed, according to her world there are not many who do.