Last month, the Federal Housing Finance Agency (FHFA) expanded eligibility for appraisal waivers on purchase loans by increasing the maximum loan-to-value (LTV) ratio to 97%. This change allows appraisal waivers—especially without property inspections—for loans with up to 97% LTV. As a result, borrowers may be able to finance nearly the entire cost of a home without fully understanding its value, exposing consumers to financial risk, particularly during a market downturn.

 

So, what does this mean for appraisers?

 

For those who primarily complete lender-based appraisals, it’s clear that FHFA and its appraisal waiver policy believe they can manage risk without requiring an appraisal. This will likely lead to reduced volume for appraisers in the future. While the appraisal waiver program still represents a small portion of the overall volume, it signals that FHFA will continue to push for waivers and alternative products over traditional appraisals. This should serve as a wake-up call for appraisers who rely heavily on lender work—now is the time to diversify.

 

The solution is to move away from lender work and diversify your client base. Consider providing appraisals for real estate agents and sellers, helping them set accurate listing prices. Partner with attorneys to conduct appraisals for estates, both current and retrospective. Explore divorce appraisals, as attorneys and spouses rely on them daily for divorce proceedings. As the waiver program grows, market yourself to buyers and agents as a provider of “double-check” appraisals: we’ll verify your purchase price to ensure you’re not overpaying. There are plenty of opportunities to carve out a niche in the non-lender space—get creative to meet the needs of your market.

 

Breaking into the non-lender space isn’t easy, but it’s necessary. FHFA is signaling that your volume will decrease over time if you don’t adapt. If you want to remain in the appraisal business, you must redesign your business and diversify your client base. You’ll need to step out of your comfort zone, market your services, and be proactive to succeed. Appraising is a rewarding profession, and once you diversify away from lending, you may find yourself enjoying it again.

 

I’m not suggesting you abandon lending altogether. By securing non-lender appraisals, you’ll be able to choose to work with only the best direct lenders or AMCs that value your expertise and compensate you fairly.

 

If you’re interested in learning more about networking and growing your non-lender business, I encourage you to consider joining ReferAppraisal.com. We offer a $20 per month or $199 per year membership, which provides full access to our micro-lessons filled with real-life scenarios and actionable tips. If you’re not ready to invest, we also offer a free membership that lets you connect with other appraisers, offer nationwide appraisal coverage to clients, and earn money through non-lender referrals and peer referrals.

Whenever I get a call from a potential client, I make it a priority to gather details before quoting an appraisal. In addition to the address, it’s essential to understand the purpose of the appraisal. Once I know the reason, I can offer options tailored to their needs, whether it’s a full appraisal with an on-site visit, an exterior-only observation, a report based solely on public records/MLS data, a home measurement and sketch, or simply a consultation. Today, I want to talk about the benefits of offering consultations.

 

Last week, I had two assignments where clients opted for consultations instead of a full appraisal. Both clients needed guidance but didn’t require a formal written report. They simply wanted a conversation about the property and a general sense of the local market.

 

The first case involved a vacant piece of land that had been in the family for years. The owners, who lived out of state, had received an offer from a neighbor. Since there were plenty of comparable land sales nearby, it was easy to analyze. After a quick 15–20 minutes of research, we had a productive 15-minute Zoom call. The client was thrilled with the information and appreciated the $150 consultation, which saved him from the $400–$600 quotes he had received from other appraisers for services he didn’t need.

 

The second client was an out-of-state investor looking at a distressed property. He was considering a tear-down to build a multi-unit property and wanted a rough idea of the property’s potential without committing to a $595 appraisal. For $150, we spent about an hour total, including a Zoom session, reviewing his options. He was satisfied with the advice and appreciated the flexibility.

 

My advice to appraisers is to offer clients a range of services. Not every client fits in the same box. When you listen to their needs, you can guide them toward a solution that best suits their purpose. And remember, you’re the professional—ensure the product you offer is appropriate. For instance, a consultation may not be ideal for a divorce case, and a desktop report may not be suitable for a tax appeal.

 

If you’re interested in expanding the private side of your appraisal business, consider joining the Appraisal Referral Network at ReferAppraisals.com. With nearly 700 appraisers in our community, we offer both free and paid memberships tailored to your needs. Join us and start growing your business today!

 

I came across an article from BNI with “10 Tips for Successful Networking for Introverts.” Many appraisers are often seen as introverted professionals, but these tips from BNI offer practical ways to step out of that mold and build stronger networking skills. Definitely worth a read!

 

Starting conversations and turning them into relationships that lead to business is more intuitive for some people than for others. BNI helps provide some structure to this process with the practices that have proven to be successful for Members around the world for decades. Here are some tips that may make networking in the rest of your world a little easier if the process is new to you or you are looking for ways to bolster your confidence.

 

1. Create a business plan that includes specific contacts in strategic companies to help you be intentional in your networking efforts. If you can ask someone to introduce you to a specific person instead of asking for broad categories of connections, you’re far more likely to meet the people who can help you move my business forward. This requires some research and planning on your part to know who to ask for, but it’s easier to “work a room” if you know who you’re hoping to meet.

 

2. Since one of the most effective ways to illustrate points or persuade listeners is through stories, you may have to have a few rehearsed, quick, and entertaining anecdotes to talk about your business. While facts may be convincing, stories tap into common human experiences in ways that can galvanize and unite groups for a cause. Even in more intimate settings, stories can put people at ease, which makes you seem like a pretty great person to be around!

 

3. If you’ve attended a networking event and someone has asked, “What business are you in?” you know that there must be more interesting ways to start conversations. Think of creative ways to engage: “What’s your favorite part of your job?” What have you learned about yourself in this role?” Interesting questions elicit more interesting communication. Before starting conversations, create some interesting questions to facilitate conversation.

 

4. Tall Guy, Drunk, and the Hostess – Holiday gatherings can be fun AND good for networking with a few tips. Tall Guy is someone at a party who stands out. This could be someone who’s tall or a person with interesting jewelry or an unusual haircut. Drinkers are at the bar and they meet everyone! The hostess knows who came and you can ask her who you should meet. Three people to start your networking conversations!

 

5. Networking in Pairs: Divide and Conquer! Not everyone relishes (or deems possible!) the prospect of walking into a room of strangers alone. Don’t! Attending an event with a friend or colleague can bolster confidence and pay dividends in effective results. Just be sure to attend different breakout sessions and chat up different people, though. Then meet to exchange stories and contact information.

 

6. Talk about what you’ve learned recently. Without playing the role of teacher’s pet, it’s fairly easy to make conversation and find topics relevant to all by offering up a fun fact or content from an article you just read. “Do you know what I just learned about SPAM from a blog I read? Yes, the meat!” Far more interesting than, “Some weather we’ve been having, huh?” Scan news feeds, blogs, and podcasts for subjects to offer.

 

7. Active listening! Huh? What? Active Listening! Talking to strangers is more intuitive for some people than it is for others. Some want to regale others with tales of professional prowess or worldly woes. Others passively listen without participating. Effective connection falls somewhere in between. Active listening means intentional body language (raised eyebrows, nodding head) as well as clarifying questions when appropriate. Be fully present and try to learn something.

 

8. Ways to Answer: “How are you?” When you know you’ll be asked the same questions at events, prepare memorable, interesting answers to keep conversations lively. When asked, “How are you?” or “What’s your business?” answers like “Fine” and “Insurance” are as bland as bland gets. Answering with specific, interesting responses is more fun! Why not, “Today has been challenging, but I’ve learned a lot.” “So far, my day has been remarkable.” Please tell us more!

 

9. Networking is no joke; have some! It’s often challenging to create conversations out of thin air with people you’ve never met. If you’re not a natural connector, consider having a joke in your repertoire that you can pull out for eye rolls, if nothing else. Even if it’s corny and terrible, everyone will have just shared a common experience, bonding the group for the event! Caveat: consider your audience and make it clean and inoffensive.

 

10. Take a breath. Relax. Keep moving. After a long day of being “on” for colleagues and clients, sometimes the last thing you want to do is attend an afterhours networking event. It’s ok to take a little “me time” to gear yourself up in the car before you slap that smile back on your face! Maybe sit in your car and listen to energizing music. Deep breathing or meditation might help. You can do this!

 

If you’re looking for help with networking to market your business, feel free to post a question in the Non-Lender Forum or reach out to us directly at support@referappraisals.com. We’re here to support you!

As an appraiser, you sometimes encounter calls that raise red flags. Today, I want to share an experience that highlights the importance of screening potential clients carefully to avoid challenging or risky assignments.

 

Recently, I received a call from a person who found my business on Google. They immediately asked about my appraisal fee, and, as usual, I followed up with questions to understand the assignment before providing a quote. First, I asked for the property address and the purpose of the appraisal. The caller responded vaguely, saying it was a townhouse in Margate but didn’t provide an exact address. When I asked for the purpose of the appraisal, she avoided a direct answer and simply said, “I just want to know.” I clarified, asking if she was looking to sell, obtain a loan, settle a divorce, manage an estate, or handle a foreclosure. Still, she stuck to, “I just want to know.” 

 

Having been in the appraisal business for over 20 years, I know people typically don’t get an appraisal “just because”—there’s always a reason. After realizing she wouldn’t be transparent, I declined the assignment and ended the call.

 

This experience serves as a reminder of common red flags when fielding calls for appraisals. When a potential client avoids giving a property address or is reluctant to share the purpose, it’s a warning sign. If a client isn’t open about the basic details, there could be hidden motivations, and the assignment may come with unexpected challenges. Knowing the purpose of the appraisal is essential for providing an accurate quote and ensuring you’re well-prepared for the assignment.

 

Gathering detailed information upfront is critical for both accuracy and protecting yourself as an appraiser. If a caller is withholding key details, consider walking away—sometimes the best business decision is saying “no.” For those interested in learning more about private work or connecting with other appraisers to exchange referrals and earn extra income, join us at the Appraisal Referral Network at ReferAppraisals.com.

 

Dan Lindeman

Appraisal Referral Network