Do you want to make $150,000? $250,000? Or [insert your number here] a year doing private appraisals? How do you accomplish this? It all comes down to building connections. The value of your network is as crucial as your appraisal skill set. If you’re aiming to hit a revenue target, understanding how many connections you need and how to leverage them effectively is key.  Private appraisals are the holy grail for real estate appraisers. They provide diversification, growth, and personal fulfillment beyond lenders and appraisal management companies. These include assignments for tax appeals, estates, trusts, guardianship, divorces, listing appraisals, partition, etc. Why do appraisers want to do private work?

 

Diversification of Income:  Non-lender assignments offer revenue streams beyond traditional mortgage-related work. This can help stabilize income and reduce reliance on the fluctuations of the real estate market. With mortgage volume at an all-time low, appraisal volume for lending is also at an all-time low, with many appraisers struggling to make ends meet.

 

Professional Growth:  Engaging in diverse assignments can enhance an appraiser’s reputation and build their professional network. This can lead to more opportunities and a stronger presence in the industry.

 

Personal Fulfillment:  Some appraisers might find working on non-lender assignments more rewarding or interesting, particularly if they enjoy contributing to various aspects of property valuation beyond standard mortgage assessments. Lenders want cheap and fast appraisals. Private clients value your opinion more than banks and often pay higher fees for these assignments. Plus, most assignments do not have the strict time constraints of lending assignments.

 

Understanding Your Revenue Goal

Before diving into connections, it’s essential to grasp what achieving $150,000 in annual revenue entails. As a real estate appraiser, your income is generally derived from the number of appraisal assignments you complete. Suppose your average fee per assignment is $450; reaching $150,000 means you need to complete approximately 333 assignments a year, or about 28 assignments per month. Want to earn $250,000? You would need to complete 500 assignments a year at $500 each.

 

The Role of Networking 

Networking plays a pivotal role in securing appraisal assignments. Building a robust network helps you gain referrals, foster client relationships, and establish a solid reputation. But how many connections are necessary to meet your financial goals?

 

Identify Your Ideal Clients 

Start by identifying who your ideal clients are. Real estate agents and attorneys are the biggest referral sources for private work. Real estate agents refer appraisers for pre-listing assignments, home measurements, and appraisals for cash buyers, and they have a large database of clients who often ask them for referrals for professionals in real estate. Attorneys are another excellent source: family law attorneys need appraisals for asset division in divorce and expert witness work. Estate attorneys need values for probate, date of death appraisals, and appraisals to figure out a buyout price between heirs. Real estate attorneys need appraisals for partition purposes. Various other attorneys also rely on appraisals and make consistent referral sources for appraisers. A strong relationship with a few high-volume real estate agents and attorneys could lead to a steady stream of referrals.

 

Calculating the Number of Connections You Need 

To determine how many connections are necessary to meet your revenue goals, consider the following key factors:

 

Referral Rates 

If each connection refers you to one or two clients annually, you’ll need a substantial network to achieve your target. Based on recent surveys, the referral patterns from real estate agents and attorneys vary significantly:

 

Real Estate Agents: Polling results indicate that, on average, an agent refers to an appraiser approximately 5 times per year. Some agents report no referrals at all, which underscores the need for appraisers to actively engage with agents and demonstrate the value they can bring. Establishing strong relationships with agents can significantly enhance your referral network.

 

Attorneys: According to a survey of appraisers, 24% receive client referrals at least 12 times annually, while 61% report receiving between 24 to 36 referrals from attorneys each year.

 

Conversion Rates 

Not every connection will consistently provide referrals or generate business. Typically, only a percentage of your connections will actively contribute to your workload.

 

For a $150,000 Annual Revenue Goal:

  • If your average fee per assignment is $450, you need to complete about 333 appraisals annually. Given that agents refer an average of 5 clients per year; to receive 100 appraisal requests from agents, you would need to establish relationships with roughly 20 reliable agents. For the remaining 233 appraisals, assuming each attorney refers you 12 times per year, you would need around 20 attorney connections.

In total, to meet your goal of 333 appraisals, you would need to cultivate approximately 40 solid connections with both agents and attorneys. Since not every connection will be consistently productive, aiming for a larger number—such as 5 times this amount—can help ensure a steady stream of business. This approach accounts for variability in referral volume and the likelihood that some connections may not provide consistent referrals.

 

Quality Over Quantity 

While the numbers are useful, the quality of your connections often outweighs the sheer quantity. Cultivating strong relationships with fewer, but more influential, contacts can be more beneficial than having a large network of less engaged individuals. Focus on building trust and offering value in your interactions.

 

Strategies for Building and Maintaining Connections 

 

Attend Industry Events: Participate in real estate and appraisal conferences, seminars, and local networking events. These settings offer opportunities to meet potential clients and expand your professional network.

 

Leverage Social Media: Platforms like LinkedIn, Facebook, and Instagram can help you connect with industry professionals and showcase your expertise. Share valuable content, engage with posts, and join relevant groups to expand your reach.

 

Join Professional Associations: Become an active member of professional organizations. These associations often offer networking opportunities, educational resources, and platforms for professional visibility.

 

Follow-Up and Nurture Relationships: Maintaining relationships is crucial. Regular follow-ups, personalized communications, and providing value through insights or advice can keep you top-of-mind for your connections.

 

Achieving an annual revenue goal as a real estate appraiser is within reach with the right strategy and networking efforts. By focusing on building a network of strategic connections, fostering high-quality relationships, and effectively managing your referrals, you can create a steady pipeline of appraisal assignments and hit your financial targets. A well-nurtured network is invaluable. Invest time and effort into building and maintaining these connections, and watch your business grow as you work towards your $150,000, $250,000, or $300,000 annual goal.

 

If you would like to learn more about growing your non-lender appraisal business, become a member of the Appraisal Referral Network by visiting ReferAppraisals.com and take the first step toward expanding your professional network and boosting your appraisal business.

 

Dan Lindeman

Appraisal Referral Network

ReferAppraisals.com

Diversification is crucial for a successful appraisal business. While you can diversify with various assignment types—such as lending work, divorce, estate, and listings—today, I want to focus on diversifying your income streams. What else do you do beyond appraisals that complements your business? I consider myself a real estate professional, encompassing roles as an appraiser, real estate broker, and investor. Having multiple complementary ventures can open doors to new opportunities. Here are a few that I have encountered through diversification:

 

As appraisers, we study the market daily and can spot opportunities faster than the average person. This is where we need to wear our investor hat. When a deal presents itself, we are in the best position to act quickly. If you have the means, you can purchase a property at a discount, rehab it, rent it out, or even wholesale it. Personally, I have bought properties, held them as rentals, and eventually sold them. Being an appraiser was key to finding these deals! Use your daily fieldwork and market knowledge to your advantage to gain additional income streams.

 

Shortly after getting my appraisal license, I decided to obtain my real estate license and later my broker license. This has been one of the best financial decisions I’ve ever made! It has resulted in hundreds of thousands of additional income over my career and provided opportunities when my appraisal business was slow. It offered much-needed diversification. You already pay MLS dues as an appraiser, so getting your real estate license is easy, continuing education is a breeze, and renewal fees are very low. During the mortgage meltdown, I worked part-time on an REO team, which provided income while the appraisal business was down. I have become a valuable resource for my brokerage and am often on call for agents, which provides additional monthly income. Occasionally, I list properties for friends and family. Though I am not a full-time agent, my appraisal business accounts for most of my income. However, the best and easiest source of income from my real estate license is with referrals.

 

By exploring complementary ventures beyond traditional appraisals, such as real estate sales and investing, you can unlock new opportunities and revenue streams. Leveraging your market knowledge and seizing investment opportunities can significantly enhance your financial position. Obtaining your real estate sales license can provide invaluable support during slower periods and open up new income avenues through referrals and collaborations. Embrace diversification to ensure your business not only survives but flourishes in any market condition.

 

If you have a real estate license and aren’t earning money from referral income, you’re missing out. These referrals are simple to source and can be integrated into your appraisal process. If you want to learn how I earned $10,000 last year from just two real estate referrals, join ReferAppraisals.com and check out our latest micro-education lesson: “Combine Your Real Estate and Appraisal Licenses to Generate Referral Income”

 

Dan Lindeman

Appraisal Referral Network

When I first decided to diversify into private work, I knew I had to expand my network to succeed. The challenge was determining the best use of my budget and time. There were many options: the Chamber of Commerce, Rotary Club, NPI, Toastmasters, ProVisors, BNI, and more. Ultimately, I chose BNI, as I had previously been invited to a meeting but wasn’t ready to join at that time. Since joining, I haven’t looked back and have been a dedicated member of the same chapter for nearly 10 years.

 

We meet weekly, every Wednesday morning from 7 to 8:30 AM at a country club. BNI is structured so that each member represents a different profession. I am the sole real estate appraiser in my chapter, which has nearly 50 members. We have a robust real estate team that includes residential agents, commercial agents, mortgage brokers, inspectors, insurance agents, roofers, and general contractors. Surprisingly, most of my referrals come not from the real estate team but from other members with various backgrounds, including attorneys and PEO specialists, and notably from members outside my chapter.

 

BNI’s structure and attendance policy are key to its success. The meetings are run the same way each week, and the attendance policy limits absences and allows for substitutes when necessary. This consistency helps build strong relationships, as you see the same people weekly. Outside of meetings, I typically meet members for coffee, drinks, or dinner about once every two weeks to learn more about each other’s businesses and explore how we can support each other. BNI also has a referral policy requiring members to bring a referral for another member, give a testimonial, or bring a visitor each week. Once you get into the swing of it, you become the go-to person in your network, and your friends and family start calling you first for recommendations—creating more referral opportunities.

 

Every week, we give 45-second commercials, which has made me more intentional about my business and who I want to connect with. For example, one month, I might focus on meeting estate planning attorneys or real estate brokers. Being part of a diverse group of professionals has given me a broader perspective on my appraisal business. Learning from more experienced business owners is invaluable, as you can adopt what works for other businesses and avoid what doesn’t. Personally, I’ve grown tremendously. I went from hating public speaking to serving as the president of my chapter and running the meetings for a year.

 

The costs are high—$1,099 per year and $125 per month for breakfast and local dues. Is it worth it? Absolutely. I would join again in a heartbeat. If you’re considering joining a networking group, it doesn’t have to be BNI. Whatever you choose, commit to it fully and put in your best effort. You get out what you put in.

 

If you want to learn more about diversifying into private appraisals, please join ReferAppraisals.com. With a free membership, you will be listed on the referral network, have access to our Private Q&A Forum, and receive a weekly non-lender newsletter with tips to grow your private appraisal business. For our ELITE members, check out our latest micro-lesson about BNI, which includes details on how much I make annually from BNI, how I get business from members outside of my chapter, and much more.

 

Dan Lindeman

Appraisal Referral Network

ReferAppraisals.com

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When your phone rings or you receive an inquiry from your website, how do you approach it? What questions do you ask? How do you sell your services? Do you sell yourself? What options do you provide? The effectiveness of these interactions determines your success in converting inquiries into closed business. Additionally, do you track this metric?

Handling Phone Calls

Calls should be treated differently than emails or website inquiries. Make an effort to answer your phone when it rings or have a service that does. Even if it’s just to gather their information and promise to call back with a quote once you’re back in the office. Often, leads get lost when you forget to return a call, they don’t leave a message, or it’s time-sensitive. Your Google Business Profile can give you a report of your calls, including missed calls.

When taking a call in the office, start with typical pleasantries and then ask the primary questions: “What is the address you need appraised?” Pull up its public record and MLS, and ask follow-up questions if needed (e.g., if the aerial shows solar panels, a tarp on the roof, additions, etc.). Then, the crucial question: “What is going on? Why do you need an appraisal?” Let them speak, then summarize their needs and ask follow-up questions to ensure you’re on the same page. This is important, as sometimes people call about loans, and you need to inform them that lenders typically order the appraisal, advising them to double-check with their lender first.

How did you hear about us?

Next, ask, “Who referred you?” or “How did you hear about us?” This information is very important. If you were referred, you want to thank the referrer. You can also track where your leads come from, whether it’s Google, an agent, an attorney, or someone else. This helps you decide where to invest your marketing efforts. If all your calls are from Google, spend time updating your Google Business Profile with fresh content. If referrals are your main source, spend more time with your CRM provider and on email campaigns.

Providing a Quote

Finally, I am ready to give a quote. First, I explain what is included in the appraisal: I will visit the property, measure it to confirm the size, review any updates or recent remodels, address any deficiencies, and provide a report with the home’s market value. If it’s for a listing, I’ll also give a recommended list price, marketing time, and a range of values.

I then give them multiple options: “The appraisal fee for an on-site visit would be $____, but we also offer a virtual/desktop appraisal for $____ , since we have current data from the MLS and public records for a reliable report. Which option would you prefer?” Providing options is crucial because if they got multiple quotes, they may wonder what type of appraisals the other appraisers were offering. This approach makes it more likely to convert this caller into a customer. I have some flexibility with my quote and enjoy friendly negotiation, but it depends on the caller and property. I have no issue being firm on my fee when necessary.

Handling Pushback

When a customer pushes back, such as questioning why I need the address, my response is: “If you want an accurate quote, I need to know what I am dealing with. A 1/1 condo appraisal is much less expensive than a 10,000 sq. ft. oceanfront home.” They usually provide the address at this point. I always ask for the purpose of the appraisal and keep asking in different ways if they are hesitant to give details. This is crucial, as some people withhold information. For example, I charge more for family law appraisals because they are always more difficult due to dealing with attorneys, spouses, scheduling, etc. If a caller is unwilling to tell me why they need the appraisal, I will decline the assignment. It’s always a red flag when a caller withholds important information. Trust your gut and do not take the assignment, even if you are slow!

Further Learning

To learn more about converting leads into assignments, check out our latest micro lesson (short lessons meant to be consumed in less than 10 minutes) at ReferAppraisals.com, available to all ELITE Members. If you’re interested in a FREE membership, join today and check out the latest newsletter for tips on responding to emails and website inquiries—your current responses may be costing you!

Dan Lindeman

Appraisal Referral Network

ReferAppraisals.com

 

Real estate agents are an excellent source for private non-lending referrals. They frequently order pre-listing appraisals, appraisals for cash buyers, and home measurements. Agents also maintain extensive databases of prior customers who often seek their recommendations for various real estate needs. This often results in referrals for estates, date of death appraisals, probate, landlord/tenant sales, and much more. It’s clear that real estate agents are a valuable referral source for appraisers, but how do you connect with them? Here are a few top strategies to start building those connections today.

 

The easiest way to connect with agents in person is during appraisals. When you’re conducting your next lending assignment, invite the agent to join you at the property. Use this opportunity to discuss the property specifics, market trends, recent sales they provided, and more. This interaction opens the door for future conversations. Let them know you’re available to assist with any appraisal-related questions or issues they may encounter. Follow up with a friendly email afterwards: “It was great meeting you! I specialize in pre-listing appraisals, so if you ever need help determining a list price, feel free to reach out.” Add the agent to your database and regularly send marketing emails every week or two to stay connected.

 

If you’re currently without lending assignments and feeling slow, don’t fret! Start by searching Google for “real estate agents” and reach out to several via email. Invite them for coffee or lunch, whichever suits you both. Ask if you can pick their brains about the sales side or discuss new commission rules for buyers’ agents and their potential impacts. While not every agent may respond, this approach can help you begin forging meaningful connections.

Looking to increase your visibility and connect with more agents? Consider scheduling lunch and learns at local brokerages. Real estate offices are always eager for valuable content for their agents. You can start by contacting the office directly—either by phone or email. Here’s a simple template:

 

Dear Mr. Broker,

 

I am a real estate appraiser with over 20 years of experience in the area and I am currently booking free training sessions for agents on how to think like an appraiser. I would love to provide a training session at your office. Please let me know a date and time that works best for you.

Looking forward to hearing from you!

 

Best regards,

 

[Your Name] [Your Contact Information]

 

I typically collect agents’ contact information for follow-up, such as their name and email, and I’ll also send them a PDF of the presentation.  Then add them to your database and send regular marketing emails.  

 

Here are some straightforward methods to begin expanding your database with real estate agents. Soon enough, you’ll begin receiving referrals and making strides toward diversification. To learn additional strategies on how to connect agents, consider becoming an Elite Member at ReferAppraisals.com. Explore our latest educational micro-lessons on working with agents and access our resource library, which includes sample marketing emails to agents, office presentation materials, pre-listing flyers, and more.

 

Dan Lindeman

Appraisal Referral Network

ReferAppraisals.com