Appraisers' Free Forum

What is everyone's opinion of specializing? Commercial, residential, etc? Studying, and with no currently available opportunities for a commercial mentor, I think some of the things on the test are utterly silly, but only from a residential side. Commercial applications I could possibly see the need for them. However, I also see residentials trying to do commercial and getting lambasted, and the same from commercial that go into residential. I know there are those here that dabble in both, or work in both, but I am wanting to know some opinions of the others.
For example, do you think taking a course in how to do an apartment appraisal actually makes one competent? What would you recommend for someone going into either field for education, training, equipment, whatever?

Without a niche, it is difficult to separate yourself from the herd. It could be something as simple as manufactured homes or becoming an expert on lake property, etc. But commercial appraisers have two problems with training someone. A-frequently the trainee doesn't desire a long term position but wants to become the trainor's competition 1 - 2 years hence. So, if you want to do the bright thing, go 70 -100 miles away from your own 'homebase'. Hey, its a lot of commuting to get your hours, but A-you might sell some work locally that the supervisor might be willing to go there and B-you are not going to directly compete with him. B - often a commercial appraiser is already specialized. Maybe he is a farm appraiser. The trainee needs to be 'farm' ready, i.e.- know the difference between a pullet and a hen for instance...and know that they are grown in different kinds of buildings. You need to know crops in crop country...prepare to sell yourself to your potential mentor by showing them exactly what you do know and not being stupid enough to fake it. I tried training a few people who would say they knew how to do the job...they didn't.

On a drill rig one time, a driller hired a guy and asked him if he knew how to work on rigs. The guy assured him yes he did. When it came time to make a connection, the guy was holding the chain spinner. The driller jerked slack and the guy let go instead of flipping the chain like he was supposed to. The chain swung around and smacked another hand hard. The driller walked over to the guy and decked him. He knew he'd been lied to. Anyone who had ever seen a connection knew you didn't let go unless you wanted to hurt someone.
http://video.google.com/videoplay?docid ... 8981336347

http://video.google.com/videoplay?docid ... &plindex=9

Watching those two videos sure makes you appreciate our jobs a lot more - at least we get some separation and variations to our jobs.

Wow - talk about a dangerous job. Amazing.

WOW!!! The 'Solutions' section is kinda skinny idn't it

I tried "specializing" out of mortgage lending appraising for quite sometime & found that I had to continuously be marketing.

Whereas in morgage lending...you worked feverishly to get clients in the beginning & rarely needed to market thereafter.

Too bad AMC's turned a once profitable business into a vocation!!!

Mako wrote:WOW!!! The 'Solutions' section is kinda skinny idn't it

I tried "specializing" out of mortgage lending appraising for quite sometime & found that I had to continuously be marketing.

Whereas in mor(t)gage lending...you worked feverishly to get clients in the beginning & rarely needed to market thereafter.

Too bad AMC's turned a once profitable business into a vocation!!!

Edit: forgot the (t) in second mortgage

WTF!!!

That shouldn't have happened

I've toyed with the idea of becoming a sort of "floater" for commercial work.

I have no desire to be my own commercial shop. However, floating between local shops picking up overflow could be potentially worthwhile.

It's a just a nebulous thought right now.....

We had always planned to become Cert Gen, but quite frankly, we like certain aspects of residential appraising (other than mortgage work) and we have decided to stay Residential and specialize in things such as review work, investigations, unusual properties, litigation, etc.

It seems to me that with the right courses and experience, a residential expert does not necessarily require general ertification. In fact, there are plenty Cert Gens out there who really aren't that experienced in residential work.

Back in the day I specialized in attorney work, ERC and some review and REO work. I hate(d) lender work and only took it with a detailed engagement letter written by me that the person ordering the appraisal had to sign (or no engagement). As a reviewer now, I most definately have a specialization. It is the only way to go.

If I am forced back out onto the street I'll go back to what I was doing, although I would most certainly prefer to do nothing but review (there are some of us who are odd that way).

Specialization is the only way to go!

Annemieke Roell wrote:It seems to me that with the right courses and experience, a residential expert does not necessarily require general ertification.

I think that is an accurate observation, particularly given the disarray in the profession, however what the shark said about marketing is true. The AI is doing the only appraiser wide area marketing I am aware of and that is all about designation, which actually carries the not-sometiimes-so-subtle message that the rest of the profession sucks. Of course that isn't helpful at all, but it is a part of the way it is.

I think sharks have something to offer, particularly in culling the weak, sick and carrion, and a strong marketing plan is essential. I am shrinking my area of marketing to the local area and going with it. I am pretty well convinced that a designation will not help me run my business. I do think some sustained and persistent marketing is in order, but I'm not altogether sure what it looks like.

I like your idea, how do you sell it?

Edd, with your legal accumen, why not simply market to that audience? Seems to me you would have an automatic in.

Corporate Lackey wrote:Edd, with your legal accumen, why not simply market to that audience? Seems to me you would have an automatic in.

It would seem so, but the AI has been conditioning whatever I can imagine is my niche market. Seems I have to prove I can do as well as the MAIs. The litigation market (which I assume you are speaking of) has a tremendous motivation to win and is not above using spin doctors to do that. If you look at the credentials of most expert witnesses, they have been accumulating postscript letters since cub scouts.

The AI has done a bang up job convincing a lot of the legal profession that their's is bigger.

Getting the MAI disarms the suspicious, unfortunately at the expense of the profession and sometimes honest analysis and testimony. The expert witness appraisers I talk to have become enamoured with their abiity to "handle" attorneys, indeed it s a part of teaching forensic appraisal. If they knew what they were doing and had support for what they were saying, there is no "handling" to it, anymore than what you do elsewhere to deal with difficult people and maintain your composure and credibility.

But, that is the way it is. I am about to abandon my pursuit of the AI designation based on my own experiences and needs, but as you know I continue to solicit other thoughts.

My opinion on specializing is that it depends a lot on your situation. If you are in a rural county with no other appraisers in the next county, then you probably would have to specialize in farms. If you work for a big firm, and they fly you all over the place, then you would need to specialize in motels, or Walgreens, or whatever it is. But, there are a lot more ways to look at it than just property type. For example, you might specialize in residential property division for divorce. I think I have the ideal specialization: I specialize in Joplin. I try to know everything there is to know about this market... and it's an ongoing education. Because Missouri is a non-disclosure state, that gives me a leg-up on almost anyone who does not do the same. Because we have lots of residential appraisers, I don't do hardly any mortgage work... refer that out most of the time. But, I do try to stay current on Fannie pronouncements so I can do one if needed. That's my ticket... specialization with broad generalization. You have to find your market nitch, but the key for me, is being able to take the jobs I want within my market and being able to turn down, refer, or just overbid the ones I don't want.

Edd Gillespie wrote:I think sharks have something to offer, particularly in culling the weak, sick and carrion, and a strong marketing plan is essential.

I like that...it's why I use the handle.

I don't think anyone should limit their specialty to JUST appraising. In fact when I was looking around for a way out of mortgage appraising I considered related fields as well. I settled on a career that I could build upon my appraisal experience (real estate & investment).

That's what I consider real diversity.