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Yes. I think now is an excellent time to get into appraising, PROVIDED you are serious about becoming a good appraiser and not just a form filler.
You need to be able to go through a minimum of 2 years of training under a Supervisor and you won't make much, if any, money.
But our profession is in dire need of good, professional appraisers who won't accept any assignments other than full fee.
It isn't easy but my partner and I have insisted on it and we are doing well.
(I am actually disagreeing with ETEX2) Sorry, S!
I'll refer all of those highly experienced appraisers (MAI's included) who's resumes I have been receiving to Oklahoma then! According to one of my closest friends (who happens to be the chairman of the TALCB right now), our ranks have diminished significantly. Coupled with an almost 70% failure rate for the general cert. exam, we may even become an endangered species. I'm holding out that my GC will be worth it's weight in gold someday.....but I may be dead before that happens.
Commercial sales activity right now is about 10%-15% of what it was in 2007 and 2008. Thankfully, eminent domain work is keeping me alive; that plus a little flipping on the side.
Been looking to other investment opportunities as well. An old time used car dealer that I know is practically begging me to buy some cars for him to sell....I'm considering it.
Edited to add: D, do you REALLY believe that a new appraiser breaking into this business will be able to make a living doing appraisals at full fee?
Last edited by ETex2; 07-09-2010 at 08:28 AM..
Reason: afterthought
Regulations I was referring to... and this is from my appraiser friends, I may not have it right.
IN a nutshell they all have spent years developing relationships with mortgage companies, etc and now the appraisals are ordered with a rotation where the banks can not use the appraiser of their choice and must use whatever one is up next. So their referral base is pretty much thrown out the window.
I'll refer all of those highly experienced appraisers (MAI's included) who's resumes I have been receiving to Oklahoma then! According to one of my closest friends (who happens to be the chairman of the TALCB right now), our ranks have diminished significantly. Coupled with an almost 70% failure rate for the general cert. exam, we may even become an endangered species. I'm holding out that my GC will be worth it's weight in gold someday.....but I may be dead before that happens.
Commercial sales activity right now is about 10%-15% of what it was in 2007 and 2008. Thankfully, eminent domain work is keeping me alive; that plus a little flipping on the side.
Been looking to other investment opportunities as well. An old time used car dealer that I know is practically begging me to buy some cars for him to sell....I'm considering it.
Edited to add: D, do you REALLY believe that a new appraiser breaking into this business will be able to make a living doing appraisals at full fee?
S, I suppose that our market is different from yours. And yes, I do believe that new appraisers will be able to make a living at full fee. Perhaps not right away, but then in any profession you have to work your way up.
I also think that in the next few years things will improve. And another thing that is important, but that goes for any profession/job .... you have to diversify so that you are never depending on only 1 specific source of income. In other words, branch out into other segments of real estate.
Regulations I was referring to... and this is from my appraiser friends, I may not have it right.
IN a nutshell they all have spent years developing relationships with mortgage companies, etc and now the appraisals are ordered with a rotation where the banks can not use the appraiser of their choice and must use whatever one is up next. So their referral base is pretty much thrown out the window.
That is true. But that is what I mean by not putting all your eggs in one basket. It is dangerous to depend solely on one type of source.
It may take a few years but with hard work it is possible to develop a certain amount of clients from different sources.
I'll refer all of those highly experienced appraisers (MAI's included) who's resumes I have been receiving to Oklahoma then!
I see a lot of appraisers leaving the business as well. This means there will be a substantial shortage of competent appraisers at some point in the near future.
Quote:
Originally Posted by ETex2
According to one of my closest friends (who happens to be the chairman of the TALCB right now), our ranks have diminished significantly.
And this is a good thing for those of us left. I'm seeing a higher quality student in my classes than I did four years ago. I see a lot of licensed apprasiers dropping out, quite a few cert res as well.....but then the easy money where you could do four full fees a day are long past. Now you actually have to earn your money.
Quote:
Originally Posted by ETex2
Commercial sales activity right now is about 10%-15% of what it was in 2007 and 2008.
I think the commercial real estate bubble has yet to burst. And a LOT of that money originated in Asia.
Quote:
Originally Posted by ETex2
Been looking to other investment opportunities as well. An old time used car dealer that I know is practically begging me to buy some cars for him to sell....I'm considering it.
One of the factors that makes appraisers successful is knowing markets and being able to invest. I would do it if you can trust this guy......on the other hand, if he is that good, why does he need your money?
Quote:
Originally Posted by ETex2
Edited to add: D, do you REALLY believe that a new appraiser breaking into this business will be able to make a living doing appraisals at full fee?
yes.....but not at first. Like it was in 84, you may have to work for 5 or 6 years before the appraisal business will sustain you full time........to anyone wanting to become an appraiser, don't give up your day job.
I taught with someone whose husband was a driver for Fed Ex until both his knees had to bereplaced--at that time--05 or 06--the RE market here in Texas was going great guns...
he has friend who was working for BoA in the mortgage dept who told him that being a RE appraiser might be something that he could do--and make decent money--
the husband had not finished his college degree--so they thought abut it and he decided to do it---
he made some bad choices in the 5 or so year since he started--that really had nothing to do with what happened to the economy or RE specifically---
he was a union employee and because he was afraid that if he told the union he was probably not going to come back to FedEx after the surgeries they would have cut off his workers' comp ins and medical coverage--legally I don't think they could have done it as long as he did not resign...
but there were things the company/union could have done for him as far as "reeducation" type benefits...
he left his job too soon and missed out on a year's worth of at least some type of wage payment--and gave up his insurance--that was MAJOR mistake--
his wife is teacher and makes decent salary but her health insurance is just not anywhere as good as FedEx's -- and they had a son diagnosed with cerebral palsy and other issues--
they wound up paying out of their pocket for things that his old insurance would have covered--
he went back to college to finish his business/real estate degree--again paying tuition cost
and he started on the courses for real estate appraiser--
to actually do the intership before the final exam he had to have mentor--someone to check/sign off on his appraisals--the guy he got was a slug and not very helpful--he even wound up being suspended during the course of the husband's training--and neither one of them could work for 6mo--
my friend's husband was doing anything--like mowing yards -- to bring in som extra money
he is not that great a student so he had to take at least one of the tests as part of the certification process more than once--
he also was not up front with my friend about the time line for doing all this--it has taken him probably twice as long as it might have taken someone else--
during the course of his certification--the market tanked/real estate fell off---his friend who worked for BoA was put into another job and BoA changed the way they do appraisals so he could not guarantee that the guy would have work from BoA in the future..
and the fact that the rules have changed across the board means that it is luck of the draw if he gets a call or not to go out--
he STILL has not gotten his final certification--and this process has been going on forever--
they have refinanced their house like 3 times to get some extra money--my friend was doing extra work at school like managing the study/detention halls after school and she became a club volleyball coach this year to make extra money...
he is almost ready to complete the work for his BS in business--which is great--give him credit for that--and after he gets certified as appraiser he gets to keep all his fee--vs paying his mentor 50% of it--and that mentor thing was worthless really--because the guy himself was pretty spaz...another person might have been much more helpful and on the ball...
but not sure if he is going to really be able to take up as much of his share of supporting the family as he was doing when he was driving for Fed Ex--they had to take most of his stock out of his 401K this year to suppliment their income or lose their house....
I see a lot of appraisers leaving the business as well. This means there will be a substantial shortage of competent appraisers at some point in the near future.
And this is a good thing for those of us left. I'm seeing a higher quality student in my classes than I did four years ago. I see a lot of licensed apprasiers dropping out, quite a few cert res as well.....but then the easy money where you could do four full fees a day are long past. Now you actually have to earn your money.
I think the commercial real estate bubble has yet to burst. And a LOT of that money originated in Asia.
One of the factors that makes appraisers successful is knowing markets and being able to invest. I would do it if you can trust this guy......on the other hand, if he is that good, why does he need your money?
yes.....but not at first. Like it was in 84, you may have to work for 5 or 6 years before the appraisal business will sustain you full time........to anyone wanting to become an appraiser, don't give up your day job.
I agree with most of what you said; of course markets are somewhat different in the Dallas area vs. Oklahoma.
I don't see the commercial r.e. bust being as drastic as it was in the early to mid '90s. For the most part, if the loan is performing, I don't see that the FDIC and the Comptroller's office making them call in loans, then closing the bank, reselling it, etc.. The nightmare that was the RTC made me lots of money. But the gov. essentially overregulated to the point of driving the market in a downward spiral.
Small banks this time will be probably be hit the hardest. But heavily capitalized banks should survive and I don't expect to get rich off of their misfortunes. There was a time back in around 1989-1995 that almost 100% of my business was appraising distressed and foreclosed property for the RTC, FDIC, or "bad banks" set up by gov. agencies to handle these properties. I appraised only commercial properties (still do).
I got into the business in 1983 as a trainee and after about 8 months in the business, was making 6 figures working for an MAI, back when they weren't that plentiful even in Dallas. I guess I was fortunate to be working for the right firm, but by 1987 I was the senior staff appraiser in a firm with 9 appraisers and 5 clerical. Had a full-time assistant of my own and I didn't even type my own reports until 1990. That was done by the word processing girl. Good times.
The reason I was looking to get into this business is after 12 years in Corporate America I want a career where I can work for myself. I need the freedom, flexibility and independence that self-employment can offer.
I am in sales so I had considered RE sales, but in that exploration I stumbled upon appraisal and it sounded much better. I read a book on it and spoke with a few people that are currently working in the field as well as posting here. So far I've gotten mixed reviews but one theme is constant, if you go for it, go commercial. The first classes begin in the fall and I'm still on the fence whether or not to go for it or pursue another avenue. There are many other options I'm sure.
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