Is Appraising a Good Career? What about the Future?

I am asked almost daily if I think Appraising is a Good Career...AND what about the Future of this industry? First let's address what's going on currently.

It's no secret that things are not good in our economy. We are on a major downturn with unprecedented foreclosures, bank closures, and the government takeover of Fannie and Freddie.

In a nutshell we are in a great time of change.

If this gets you down just remember...

Where there is great change there is great opportunity.

That's a fact.

For example...there a many real estate investors who are picking up properties for pennies on the dollar. In fact, there are $150,000 properties being optioned for $3,000 in some areas. In able to be someone who thrives in times like these you have to get out of the herd mentality. Your strategies have to change. So let's talk about this in the context of appraising...

Do I think that Appraising is a Good Career?

My answer is Yes and No.

Let's start with the Negative first...

Appraising is NOT in my opinion a Good Career AT THE MOMENT.

Residential and Commercial work has dramatically slowed down and dried up. In many areas appraisers are trying to live off of 5-10 appraisals a month. Compare this with the 3-10 a day that they were used to and you get the idea.

If you are a Trainee and you are looking to get into the industry now AND make money I would tell you to consider something else. Making a living as a trainee is not an option for most right now. BUT don't discount what is going to happen in the future. You see most people...no matter what industry they are in, fail to look at the coming trends. They haven't trained themselves to prepare for the COMING changes.

This brings us to the Positive...

Appraising will be a GREAT career once again when our economy recovers.

With the new regulations making it harder for one to become an appraiser AND the massive number of appraisers leaving the industry...you can imagine that there will be once again, more work than appraisers can handle.

It's just common sense.

Real Estate has always been and always will be cyclical. We've had crises before and recovered and we will again. It's true that we haven't seen a crisis on this scale but all that means is that it will take longer to recover...but we will recover unless we have a complete global disaster.

So here is my advice for any trainee looking to get into this industry...

Appraising takes time to learn properly. The old way of learning appraisals and getting into the industry is gone. The qualifications are harder and there are fewer Supervisors. If you are serious about becoming an appraiser you need to shift your focus to set yourself up for 1-2 (possibly 3) years down the road when the market recovers. That means learning the job correctly now. You need to set yourself up as an expert.

Due to the changes I have had to change the focus of my company. There aren't nearly the number of Trainees as there was 1 1/2 years ago. Instead of training a large number of Trainees we now concentrate on a few trainees who are serious and have purchased training and contracts with our Supervisors. The contracts insure that they will have a Supervisor to sign for their hours and the training insures that they know what they are doing.

Remember a Supervisor can only have 3 trainees at a time. So they want the best. I train them and when they are ready they start building their clients and their business knowing they have a guaranteed Signer/Supervisor.

It's true that few of them are making money now with appraising but that is realistic. The days of learning the craft and getting paid for it are long gone.

Our trainees are setting themselves up for the coming changes and that is what every serious trainee needs to do. It's like going to night school. You have to have your regular jobs to support yourself during the day and put the time in to prepare yourself for a future career change at night. It's not easy but it's worth it. Get our package and start learning now. Don't just sit around and hope things will change.

If you are serious about appraising then you have to take a serious realistic approach to set up your future. Get your knowledge now while the market is down. Do what you have to, to pay your bills now but start in a positive direction for your future. If you wait for the market to come back just know that there are going to be very few Supervisors out there willing to sign for you. Be prepared to pay for their services just like paying a college for knowledge. It's a business...your business. and in business everything is negotiable.

On a last note...there are ways to make great money at appraising right now but few are taking advantage.

Appraising is a Great career but to last you have to be able to diversify in the slow times. Do foreclosures, FHA, and estate work. Start a business using appraisals to help home owners avoid foreclosures. Partner with a interior designer of high end homes and do an appraisal to show them the before and after market value of their homes as part of the service. Use your creativity to diversify.

Get out of the herd mentality, prepare for your future and there is nothing that you can't do!

Ed