The Role of Appraisers in Partition Cases: A Lucrative Opportunity

When two individuals who are not married co-own a property and face disagreements over its management or sale, legal intervention in the form of a partition lawsuit may become necessary. These cases provide a significant opportunity for real estate appraisers to offer their expertise. Professional appraisals are crucial for determining fair market values and equitable distribution of property interests, making appraisers essential to the resolution process.

Understanding Partition Actions

Partition lawsuits occur when co-owners of a property reach an impasse over whether to sell, buy out each other’s shares, or determine a collaborative management plan. In such cases, the court steps in to oversee a fair division of the property, which often leads to its sale and the distribution of proceeds. A judge considers factors like initial investments, mortgage contributions, maintenance costs, and rental income to determine a just resolution.

 

As Gary M. Singer noted in the South Florida Sun Sentinel, “When selling a shared property, co-owners must decide how to fairly split profits or handle buyouts. Without an agreement, courts may intervene.” This underscores the importance of professional appraisers in providing objective valuations to help resolve such disputes efficiently.

Why Appraisers Play a Critical Role

Appraisers are essential in partition cases because they provide unbiased, market-supported valuations that influence the court’s decisions. Their expertise helps establish:

 

-Fair Market Value (FMV): Courts require appraisals to determine the property’s current worth before making decisions on division or sale.

-Equity Distribution: If one party has contributed more toward maintenance, taxes, or mortgage payments, an appraisal helps quantify their equity stake.

-Buyout Amounts: When one co-owner wishes to buy out the other, an appraisal ensures the price is fair and justified.

The Growing Demand for Partition Appraisals

Partition cases often involve complex, real-life scenarios. For example, I often do appraisals for partition purposes. Usually, the attorney recommends me, or the client finds me through Google. The last appraisal I conducted involved two friends who purchased a townhouse together. One friend moved out and now wants the property sold or a payment for his interest in the property. These kinds of disputes illustrate the growing need for appraisers who can provide fair and defensible valuations in emotionally charged situations.

 

As more people invest in real estate jointly—whether as business partners, friends, or family members—disputes are inevitable. Many of these co-owners never establish clear agreements, leading to legal conflicts when one party wishes to exit the partnership. Partition lawsuits, therefore, create an ongoing demand for qualified appraisers who specialize in providing credible, defensible valuations.

How Appraisers Can Benefit

  1. Expanded Client Base: Attorneys handling partition cases need appraisers they can trust to provide accurate valuations. Building relationships with real estate attorneys can lead to consistent referral work.
  2. Higher Fees for Litigation Work: Unlike standard mortgage appraisals, partition appraisals often involve detailed reports, expert witness testimony, and court appearances—justifying higher fees.
  3. Diverse Work Beyond Lending Appraisals: Partition appraisals are part of the growing non-lender appraisal market, allowing appraisers to diversify their income streams and reduce dependency on lender-based assignments.

Steps to Get Started in Partition Appraisals

  1. Develop Expertise in Litigation Appraisals: Consider taking courses on appraising for legal disputes and familiarizing yourself with the court process.
  2. Network with Real Estate Attorneys: Lawyers handling partition cases need reliable appraisers; establishing relationships can lead to repeat business.
  3. Refine Your Report Writing Skills: Partition appraisals often require detailed explanations and defensible analyses, making strong report-writing skills essential.
  4. Be Prepared for Testimony: Appraisers in partition cases may need to testify as expert witnesses. Gaining confidence in deposition and trial settings can set you apart.

Conclusion

Partition cases are increasingly common, and appraisers play a vital role in ensuring fair property valuations during legal disputes. By specializing in partition appraisals, appraisers can tap into a lucrative market, expand their professional network, and establish themselves as key players in real estate litigation. If you’re looking to grow your non-lender appraisal business, partition cases present a significant opportunity to do so while making a meaningful impact on property dispute resolutions.

 

Visit the Appraisal Referral Network at referappraisals.com to learn more about partition appraisals and discover strategies to effectively market your appraisal business, expanding into non-lender work.

 

Should Appraisers Charge Referral Fees? Here’s Why It Makes Sense

Appraisers often ask why they should charge a referral fee. Traditionally, if an appraiser receives a request they can’t handle—whether due to location, scope, or time constraints—they simply pass it along to a colleague without asking for anything in return. But “that’s how it’s always been done” doesn’t make it the best approach. Some appraisers balk at paying or receiving referral fees, and my question to them is: Why?

 

Why Referral Fees Are Common in Other Professions

In many fields—like real estate sales and law—referral fees are the norm. So why aren’t they standard practice for appraisers? Do we see ourselves as held to a higher standard, or are we missing out on an additional revenue stream? My personal experience shows that, while the idea of “what goes around comes around” can work elsewhere, it rarely does in appraisal referrals. If other professions benefit from referral fees, perhaps it’s time for appraisers to explore the same model.

 

Are Referral Fees Allowed Under USPAP?

The short answer is yes. USPAP does not prohibit referral fees. If you’re unfamiliar with the reporting requirements, Tim Andersen has addressed them in a prior post. On the Appraisal Referral Network, we only handle referrals for non-lender assignments—listings, estates, probate, guardianship, divorce, partition, immigration, and litigation—ensuring that everything remains within both ethical and regulatory guidelines.

 

My Journey to Charging Referral Fees

I’ve been building my non-lender appraisal business for over a decade. Initially, I worked with trainees and 1099 appraisers on a fee-split basis, but I discovered that the mentorship and report-review process didn’t fit my ideal business model. Shifting to a support-staff system allowed me to focus on my own assignments—leading to less stress, greater freedom, and higher earnings.

 

Because of effective lead generation through networking, social media, and Google, I receive many calls for assignments—often outside my coverage area or too time-sensitive to handle. I used to pass these on for free, thinking it might come back in other referrals. Unfortunately, it rarely did. Eventually, I decided to charge a 10% referral fee on completed assignments. While some appraisers declined, others saw the value, creating a win-win scenario:

 

-Clients: Served by a qualified appraiser they can trust

-Receiving Appraiser: Retains the quoted fee and receives new business

-Me: Earns compensation for generating the lead

 

Introducing the Appraisal Referral Network

This success led me to create the Appraisal Referral Network, a platform that helps other appraisers tap into referral-based income. The system:

  1. Offers a referral contract for clarity and transparency.
  2. Lets the receiving appraiser quote any fee they want.
  3. Tracks assignment progress for both parties.
  4. Provides seamless payment of referral fees once the appraisal is completed.
  5. Allows you to review the appraiser’s qualifications to ensure quality.

Currently, free members earn 3% of the appraisal fee, while Elite Members ($27.99 per month) earn 12%. The receiving appraiser pays 15% of their quoted fee upon successfully completing the assignment—and no charge if it doesn’t go through.

 

The Future of Referral Fees in Appraisal

Paying referral fees is poised to become standard for appraisers, just as it is for real estate agents and attorneys. If you haven’t already considered this revenue stream, now is a great time to explore its potential. Not only can it help your clients find qualified professionals, but it also boosts your bottom line and raises the bar for business practices across the appraisal industry.

 

Visit ReferAppraisals.com and discover how referral fees can benefit your appraisal business. Let’s work together to make referral fees the norm—and foster a more collaborative, profitable community of appraisers.

collaborative, profitable community of appraisers.

Last Monday, January 6th, marked “Divorce Day,” the unofficial start of divorce season. This time of year sees a noticeable uptick in divorce filings and consultations with family law attorneys. The reasons for this phenomenon are multifaceted: Many individuals use New Year’s resolutions as a chance for a fresh start, addressing unresolved marital issues or pursuing happiness outside of strained relationships. Others delay initiating divorce proceedings to avoid disrupting the holiday season for their families. Year-end financial and tax planning also play a role, as many people wait until January to begin the divorce process. Additionally, the new year serves as a psychological marker for change, motivating individuals to take action on decisions they’ve been contemplating. As an appraiser, understanding these trends can help you prepare for and capitalize on this busy season.

 

Building a niche in private appraisal work is crucial for growing your business, and divorce appraisals offer a unique opportunity. Over the years, I’ve found this niche to be my specialty, with divorce-related assignments accounting for over 30% of my appraisal work in 2024. These assignments are often needed when one spouse is buying out the other’s share of the marital home, when the home’s value becomes central to settling the case, or when the home was a premarital asset and multiple valuation dates are required. I’m typically hired either before mediation, to help parties reach a settlement, or after mediation, when disputes about the home’s value remain unresolved.

 

To succeed in the divorce niche, you need to understand the divorce process so you can communicate confidently with family law attorneys. Mastering the nuances of divorce-specific appraisals, including appropriate forms and how to handle assumptions and hypothetical conditions, is essential for ensuring your work is credible and defensible. Be prepared for challenges, such as clients stretching the truth to achieve their desired outcomes, and have a plan for maintaining integrity and professionalism in these situations.

 

Building strong relationships with family law attorneys is key to success in this niche. Most of my divorce appraisal work comes from attorney referrals. To build similar relationships, network proactively by sending emails, making calls, and scheduling coffee meetings to introduce yourself and your services. Once you’ve established a relationship with one attorney, they’re likely to refer you to others. Additionally, optimize your online presence by advertising divorce appraisal services on your website and leveraging Google to attract clients. When a spouse hires you, it’s also an excellent opportunity to connect with their attorney.

 

A common concern among appraisers is the possibility of their work being scrutinized in court. However, only a small percentage of divorce appraisals end up in court. Even if it happens, remember that you are the expert—your appraisal knowledge surpasses that of family law attorneys. Preparation is key: be thorough in your work and confident in presenting your findings to excel in court if called to testify.

 

Appraisers, the busy season for divorce appraisals is here. Embracing this niche is a fantastic way to diversify your business. If you’re looking for guidance, join the Appraisal Referral Network at ReferAppraisals.com. We offer both free and paid memberships to support your growth. Sign up today and receive a free engagement letter template and our “10 Steps to Grow a Non-Lender Business” guide—yours free just for joining. Don’t miss out on these valuable resources to elevate your appraisal business. Visit ReferAppraisals.com now and take the first step toward success. Prepare now and take advantage of the opportunities divorce season brings!

Every year, I set goals and hold myself accountable to them throughout the year. For my financial goals, especially appraisal volume, I track progress weekly, monthly, quarterly, and annually. Each week, I jot down my gross volume on a notepad on my desk, breaking it down into week-to-date, month-to-date, and year-to-date totals. I also maintain detailed records in QuickBooks and Google Sheets. My advice? Know your numbers. Tracking your progress helps you identify growth opportunities and achieve your goals more effectively. If I notice I’m falling short of a monthly target, I push harder in the final week to close the gap.

 

Today, I’d like to share my 2024 appraisal results and invite you to share yours in the comments. This past year was both challenging and rewarding as I managed my appraisal business while launching the Appraisal Referral Network. I’m incredibly grateful for the support I’ve received from fellow appraisers throughout this journey. Reflecting on the numbers, I completed 365 appraisals in 2024—an 8% decrease from 396 in 2023. However, my average fee rose from $507 in 2023 to $555 in 2024, a 9% increase. Despite the dip in volume, my income remained nearly flat year-over-year. While 2024 didn’t surpass my busiest year, 2022, I’m proud of what I achieved, especially considering the work involved in growing ReferAppraisals.com.

Breaking Down the Numbers

Using QuickBooks and Google Sheets, I categorize my work by client, referral source, and assignment type—a process that’s been a game-changer for my business. Here’s the breakdown for 2024:

 

Assignment Types:

  • 31% Divorce
  • 22% Estate/Tax Purposes
  • 21% Lending
  • 16% Listings
  • 10% Other Non-Lender Assignments

 

Referral Sources:

  • 20% from Google searches
  • 19% from BNI referrals
  • 20% from real estate agents (no single agent contributed more than 3% of my gross income)
  • 17% from three attorneys
  • 10% from direct lenders (each contributing less than 5%)

 

My top sources—Google and BNI—highlight key risks. A change to Google’s algorithm could jeopardize 20% of my business, and scaling back my BNI contributions could similarly affect my volume.

How Does Your Business Compare?

I’m proud to have built a diverse, recession-proof, and interest rate-proof business model. Sharing these results is more than a reflection—it’s proof that building a sustainable non-lender business is within reach. Appraising becomes far more enjoyable without lender pressures, endless revision requests, or the need to bid for assignments. If you want to grow your non-lender business, I’d love to help. If you’re looking to grow your non-lender appraisal business, I’d love to help.

 

The Appraisal Referral Network at ReferAppraisals.com is designed to help appraisers connect, exchange referrals, and grow their businesses. With free and paid membership options, a Business Growth Library full of resources, and education lessons tailored to building a non-lender business, we provide the tools you need to succeed. Take the first step toward building a business you love—join today and unlock your potential!