NO WORKING ON THANKSGIVING!! USPAP VIOLATION!!! THE APPRAISAL POLICE ARE WATCHING YOU!!!
- Relaxed work schedule- The majority of appraisers work for themselves and enjoy a relaxed work schedule.
- You can pick and choose your clients.
- You’re in total control of your success.
- Good blend of working in and out of the office. I like my job because I don’t have to sit at my desk all day. I am able to work outside of the office during appraisal inspections which helps me to not get bored with what I am doing.
- You have control over how much money you make. A good part of owning your own business is that you are in charge of everything you do.
- Current trends in grassroots efforts. … some positive changes that have resulted from this is the trend in appraisers starting to take control of the situation and make themselves heard through the use of social media and state coalitions.
- Better tools for doing our job.
APPRAISER INCOME AND EXPENSE POLLS
The podcast, The Wits End Broadcast, is very “off the wall”, including “fake” commercials. I suggested including an appraiser commercial. It is hilarious!!
Episode 4, the most recent, has the appraiser commercial – appraiser Candy Cotton, short – only 7 minutes long for the entire episode. Hits a lot of appraiser “hot buttons” ;>
You gotta listen to it!! Plus, check out her other 3 posted podcasts. Please post a comment on iTunes or Stitcher.
http://app.stitcher.com/browse/feed/75222/details Can link to social media, post a comment, get an app to subscribe on your iphone or android phone, etc.
https://itunes.apple.com/us/podcast/the-wits-end-broadcast/id1048415737?mt=2 The best if you use iTunes. iTunes has labeled the podcasts as “explicit”. Sorry, not much in them except for a brief very humorous reference to group sex in an early episode ;> My iphone has Gigabytes of podcast from subscriptions, including this one. I gotta take off a week to listen to them!!
http://thewitsendbroadcast.libsyn.com/ – very easy to use but not many features such as comments, social media links and subscriptions.
About the podcast author: The podcast author and speaker is Lucinda Ryan, who edited my paid Appraisal Today newsletter for a few years when I first started it in 1992, and knows about appraisal issues. She is a former newspaper reporter and editor. Lucinda loves comedy writing and always wanted to do more, including writing for a few Famous Comedians and making lots of money ;> Maybe her podcasts will take off and I can say that I knew her “back in the old days”.
Statistics from data on appraiser licenses from www.asc.gov, and other sources, do not identify how many are doing appraisals part time or not at all.
Why does it seem like there is an appraiser shortage in some areas? Of course, it is probably a shortage of appraisers willing to work for low fees. But, this also spills over into non-AMC work as few appraisers are available as they are cranking out AMC appraisals and won’t accept non-AMC work.
I keep speaking with more and more appraisers who are no longer working long hours. There is almost unlimited demand from AMCs, but most of them do not work for AMCs. Or, work for a few AMCs that pay well and give them occasional work. Or, refuse to work for lower fees, so don’t get much AMC work.
Why do appraisers work part time?
– The median appraiser age is getting higher. Older appraisers (and non-appraisers) are no longer willing to work 60-80 hours per week. They often don’t need as much money as before. Children graduated from college, collecting social security, home mortgage paid off or have a low rate on mortgage, spouse retired, etc. I suspect that this is the primary reason.
– Fee appraisers are self employed. Many baby boomers that are employed want to work part time but their employers won’t allow it. One of my brothers started working in the printing business when he was 18. For the past 30 years he has been doing on-site printer repairs for national companies. He is 67 and would love to cut back to part time as he does not want to do a lot of driving, which his job requires. When he retires this year, there is no one to replace him. There are no new people coming into printer repairs, which requires expertise in computer software and printer hardware, and many years of experience. His employer says “no” to part time work.
– Self-employed appraisers, as we get older, can gradually cut back on how much time we spend on appraising. That is one of the best features of having an appraisal business. Also, if we start another business or get another job, we can often continue part time appraising.
– Not working but keeping license as a backup. Hard to get license back. Sometimes do an occasional appraisal. I always recommend keeping your appraisal license as long as you can. You never know when you will need extra income.
– Don’t work for AMCs and don’t get a lot of work from non-AMC clients.
I just look in the mirror. I limit the amount of work I accept. I don’t do any lender work and turn down non-lender work every week. I am 72, downsized my home, no children to support, collect Social Security of $3,000 per month since I turned 70. I worked very long hours appraising for 25 years, but 5 years ago I started cutting back on the hours I spend appraising. (I typically worked about 60 hours per week.) I get also income from my paid newsletter and ads for this free email newsletter. Most important, I need more time for my experimental music and videos, another big motivator ;>
I do appraisals and work on my appraisal business about 15 hours per week. My sfr fees are at, or slightly above, non-AMC C&R fees. I have little driving time as have been working only in my small city for the past two years – 10 minutes to go from one end to the other. I have an assistant that proofreads, invoices, etc. My typical time to writeup an sfr is about 2 hours. Total time is about 4 hours plus 1 hour for my assistant. There are few tract homes here.
What does this mean for you?
If you stay in the appraisal profession, even part time, you will have lots of work in the future. Baby Boomers are leaving the workplace, or cutting way back, in large numbers for all types of work.
WHAT DO YOU THINK? POST YOUR COMMENTS AT WWW.APPRAISALTODAYBLOG.COM !!
I set up my web site at www.appraisaltoday.com in 1998. Every page has my name, postal address, phone number, and email address. If anyone wants to contact me to give me an appraisal assignment, or for any other reason, they can find me. I get a lot of work from my web site.
When working on an article for my newsletters, I often need to contact appraisers. Also, I give out a lot of referrals, as I am very busy and turn down a lot of appraisals. For more information on my appraisal newsletters, click the banner ad below.
My assistant spends a lot of time trying to contact appraisers for my newsletters. When she googles a name, such as Janet Johnson appraiser new mexico, sometimes nothing comes up. If they are on an old directory web site, the postal address is available. Asc.gov only has postal addresses. Some state regulators have phone numbers. Some appraisal association member data comes up, such as the Appraisal Institute.
Email addresses are hopeless. They are very seldom available anywhere.
Often the appraiser has no web site, even a simple one page with name, address, resume, and contact info. If there is a contact link, you must fill out a form to contact the person.
I guess they just want to work for AMCs that contact them. Not interested in any other clients, I guess.
Communicating with other appraisers – O’Rourke Pontificates on Dustin Harris, the Appraiser Coach’s Podcast
Dustin and I discussed the big issue that many appraisers don’t know other appraisers personally (face to face or over the phone). Dustin talked about the times he has tried to establish relationships with other local appraisers. One was very successful and the other did not work very well. But, both resulted in one personal relationship each. I have written about this topic before and discussed my personal experience plus the “big picture”.
Online communication is fine, but not very good for local issues. Plus, it is hard to establish relationships.
To listen to it, go to http://theappraisercoach.libsyn.com/ . All the podcasts are there. This one is #051, Communication; a key to running a successful appraisal business. Check out the other podcasts. I subscribe to the podcast on itunes and listen to it in my car.
I was inspired to do a 7-page article on the topic for the October issue of Appraisal Today, sent out Oct.1. I sent out a request for info on small, unaffiliated groups in last week’s newsletter. To subscribe to the paid Appraisal Today, click on the banner ad below.
Many thanks to the 13 appraisals groups I profiled! They replied to a questionnaire I sent and I contacted some over the phone. Lots of good tips for appraisers thinking about starting a group and those who currently have an active group. Very interesting!!
A few appraisers are reporting getting CU appraisal warning messages from AMCs. Some AMCs get the messages and and some don’t, depending on the agreement with their lender client.
I sorta believed all the “experts” who said CU would not affect appraisers much, except the many us who do not have market based adjustment support in our work files (which we should have always had). “They” said appraisers’ time for responding to AMC questions will not change. Fannie’s reviewers have been using CU for about two years. Some lenders beta tested it. They all liked it. But, I wonder if it was tested with “boots on the ground” appraisers who actually had to respond to the warnings??
In January I wrote up a long CU article for my paid Appraisal Today newsletter. In the February issue I will have another long article, focusing on the differences between the old and new CU warning messages. They are very different. AMCs with access to lender’s warning messages are sending them to appraisers, such as:
Old message (pre-CU): Condition adjustment for comparable property #<comparable number> appears excessive.
New message(CU): The condition adjustment [for comp #X] is smaller than peer and model adjustments
New (CU): The condition adjustment [for comp #X] is larger than peer and model adjustments.
There are other messages about condition ratings different that peers and model.
I don’t know how our “peers” and The Model made their adjustments or ratings and what they are. I don’t know how to respond as to why mine differ.
Now that appraisers are getting the warnings, they are asking how to respond to them. Who are these peers? What is the model? I have no idea how to respond, except to say “I don’t know who the peers are and how they determined condition or what method they used for their adjustment. I am unable to respond.” How do you know what the condition is really like for comps? There are lots of ways to estimate an adjustment for condition. You can explain what you did. But, who is right? You, peers, or model?
MLS is soo reliable (Not) for estimating comp condition. I don’t think they will like “matched paired sales” on all of your responses for the method you used for adjustments.
Looks like maybe there will have to be some webinars for appraisers, not just underwriters, explaining how to respond.
There is a petition and a letter being circulated about appraisers getting access to CU, particularly the Web interface which lists comps. This is unlikely for many reasons, which I write about in my paid newsletter.
More important (and more likely to occur) is: Why don’t appraisers get access to subject and comp physical characteristics from the CU database, which was provided by appraisers using UAD?
For example, which appraisers are able to measure their comp GLAs? Not many. This data would really help appraisers do better appraisals. We can always look at MLS interior photos and interview agents, buyers, and sellers for other information we need, such as condition. When the MLS listing says “contractor special” or “fixer” that is a good indicator of condition.
The only reason I have heard is that appraisers vary widely and there are too many differences. GLA is a good example. This has has always varied among appraisers. When I used the old CMDC appraiser database in the late 1980s, sometimes there were more than one source of GLA on a property. I have done relocation appraisals since 1986. It was very seldom that the 2 or 3 appraisers have the same GLA. The “rule of thumb” was up to a 5% difference in GLA was ok.
How many appraisers are “fudging” their dimensions to make their GLA match public records and avoid “stips”? Hopefully, CU will change this. Maybe CU will notice how many appraisers just use public records and how many use their own measurements.
I am really hoping that Fannie allows appraisers to get property characteristic information. It will help all of us – Fannie, lenders, AMCs, appraisers, reviewers, etc.