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.

I recently worked on an appraisal for the marital home in a divorce case. This referral came from a family law attorney I collaborate with regularly. My client, the husband, planned to keep the house and buy out the wife’s share. The wife had already obtained an appraisal, and the husband wanted one to confirm its accuracy. It seemed straightforward: a simple ranch with plenty of comparable sales. However, I encountered an issue that surfaces from time to time—the client lied.

 

Private appraisals often carry the same pressure and external influences as lender work, just in different forms. In both cases, clients or third parties may attempt to influence the outcome to achieve their desired numbers. In lender work, it’s typically a seller or listing agent pushing to meet the sale price. In this case, the husband wanted the appraisal to come in as low as possible, reducing the amount he’d have to pay his wife in the buyout. Understanding client motivations is crucial in divorce appraisals: one party wants a high valuation to maximize their payout, while the other seeks a low number to minimize theirs. But how do you handle it when a client lies to manipulate the outcome—and you catch them in the act?

 

In this instance, I noticed water damage on the ceiling in the family room and breakfast area. When I asked the husband about it, he claimed the flat and main roof were nearly 20 years old and needed replacement. As part of my standard process, I reviewed available permits, which showed the roof had been replaced only two years ago. Initially, I thought this might be an error, but to confirm, I reviewed year-over-year aerial photos—a tool easily accessible through the county appraiser’s office. The photos clearly showed the roof had been replaced, with a visible color change, which was further corroborated by the assessor’s photos.

 

When I reported my findings to the client, he was almost speechless, claiming he didn’t remember replacing the roof. (I thought to myself, who forgets spending $20,000 on a roof just two years ago?) He reluctantly admitted that if the permit stated so, it must be accurate. His motivations were evident from the start. During the observation, he had insisted I classify the home as a two-bedroom, even though half the family room had been converted into a functional third bedroom with a door, window, closet, and appropriate layout. He justified this by saying he would remove the third bedroom after the divorce. His attempt to lower the appraisal value by claiming the roof needed replacement was unsurprising given this context.

 

When information cannot be verified, disclosure is key. For example, if a client tells me a home has foundation issues but provides no evidence, I include a statement in the report: “Ms. Smith indicated the home had foundation issues. No reports or repair bids were provided to support this claim. The appraiser is not qualified to determine foundation issues, and the report is subject to an inspection by a qualified third party.” I have no hesitation making a report subject to an inspection when necessary. In this particular appraisal, I didn’t mention the husband’s false claim about the roof. Instead, I stated the permits showed it had been replaced two years prior. Regarding the bedroom issue, I reported it as a two-bedroom home converted into three bedrooms.

 

With any type of assignment, the approach of trusting and verifying works well. If you’d like to learn more about private appraisal work and scenarios like this, the Appraisal Referral Network offers over 25 lessons. You can also unlock opportunities by connecting with colleagues, exchanging referrals, and growing your non-lender business. Visit ReferAppraisals.com to explore free and paid memberships tailored to your needs. Unlock your potential by connecting with other appraisers today!

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!

 

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



As the real estate appraisal industry continues to evolve, forging a strong network has become essential for long-term success. The Appraisal Referral Network serves as an invaluable resource for appraisers, providing a platform to connect, share referrals, and enhance their understanding of non-lender assignments and marketing strategies. 

 

The Appraisal Referral Network is designed for appraisers to connect, exchange referrals, and broaden their knowledge of non-lender assignments and marketing strategies. Referring appraisers earn a referral fee, while the accepting appraiser sets their own fee and earns the  appraisal fee.

 

When a client’s request falls outside your coverage area, expertise, or time availability—or simply one you prefer not to handle—you can use the platform to refer the client and potential assignment to another appraiser.

 

With a free membership, referring appraisers earn 3% of the appraisal fee. Paid members ($20/month or $199/year) can earn up to 12%. Neither the referring appraiser nor the platform sets the appraisal fee—the accepting appraiser has full control over quoting their fee and turnaround time. However, they should remain competitive to ensure the client doesn’t seek alternatives.

 

You might wonder how to ensure the accepting appraiser is qualified and will provide excellent customer service. Every appraiser on the platform has a profile detailing their license level, years of experience, designations, specialties, and resume/CV. You can confidently refer your client by saying something like, “I’m referring you to John, who has 20 years of experience and specializes in waterfront properties for divorce appraisals.” Additionally, it’s helpful to provide the accepting appraiser with guidance about your client. For instance, you might mention that you usually correspond with the client directly and only email the attorney once the appraisal is ready. These details will help the appraiser manage your client smoothly.

 

For valued clients, you can take it a step further. Reach out to a few potential appraisers on the platform, gather quotes, and present your client with both the quotes and the appraisers’ qualifications. Let the client decide which appraiser to work with, then either connect them directly or manage the assignment yourself, especially if multiple properties are involved.

 

Instead of turning away assignments that fall outside your expertise, coverage area, or schedule, leverage the Appraisal Referral Network to transform them into an additional revenue stream. By connecting with other appraisers and referring clients, you can grow your business while ensuring your clients receive excellent service by matching them with the right expert. Ready to increase your income and expand your reach? Join the Appraisal Referral Network today at ReferAppraisals.com and start benefiting from referrals.

 

Dan Lindeman

Appraisal Referral Network

I recently listened to a podcast featuring Mark Cuban, the tech billionaire, Shark Tank Investor, and part owner of the Dallas Mavericks. When asked what sets entrepreneurs apart, his answer was simple: “You’ve got to do the work.” Whether it’s learning more, working harder, or working smarter, the key to success is taking action. The same principle applies to growing your non-lender appraisal business—you can’t just wait for the phone to ring. You have to put in the effort.

 

Every Wednesday morning, I attend a BNI networking meeting that starts at 7:00 a.m. sharp. I’ve been doing this for 10 years, even when I don’t feel like it. Why? Because I know the value of connecting with 50 other professionals to grow my business. That’s what it means to “do the work.”

 

A few weeks ago, I fell behind on planning my website blogs, marketing emails, social media posts, and Google Business updates. I was busy, and the weekend rolled around. The last thing I wanted to do was work. But I spent three hours catching up, because I know this marketing is crucial for capturing private work. That’s another example of “doing the work.”

 

Your non-lender business won’t grow on its own. You have to take intentional steps—join a networking group, the chamber of commerce, or Toastmasters. Build a strong website and write consistent blogs. Set up your Google Business page, update it regularly, and ask for reviews. Post on social media consistently. Invest in a CRM and start reaching out to attorneys and agents. Schedule coffee or lunch meetings with potential referral sources. None of these activities will bring instant results, but over time, they will plant the seeds for your business to flourish.

 

If you’re looking to grow the private side of your appraisal business, connecting with fellow appraisers is a great place to start. Peer referrals are an excellent source of private work. You can join the Appraisal Referral Network for free at ReferAppraisals.com and start tapping into these opportunities.

 

For those wanting to dive deeper into non-lender appraisals and gain practical insights, we offer real-world lessons. Plus, as a paid member, you can earn up to 12% of the appraisal fee for sending peer referrals—all for just $20 per month or $199 per year.

 

In the end, it’s all about doing the work—and the rewards will follow.

 

Dan Lindeman

Appraisal Referral Network

This past week, we closed out the third quarter of the year. Now’s the perfect time to reflect—what are your goals for the fourth quarter? Do you set goals at the beginning of the year? And how often do you track your progress? At the end of each quarter, I like to run a report in QuickBooks to check my gross income, largest clients, average fee, and the percentage breakdown of assignment types. It’s a great way to stay in tune with how my business is performing.

 

When it comes to my annual income goals, however, I also track those metrics daily, weekly, monthly, and yearly. My method might be old school (don’t judge my lack of tech!), but I use a post-it note that sits on my desk. The top left of the note shows my gross income for the month, the top right is year-to-date income, and below that, I write down my daily gross from Monday to Friday. This simple habit keeps me laser-focused on my yearly goals.

 

I didn’t always track income this way. In the past, I’d review my progress at the end of the quarter, only to realize I wasn’t on track. That changed after reading *The 12 Week Year*, which shifted my mindset. The book encourages breaking down yearly goals into more manageable 12-week blocks. My takeaway? Break those yearly goals into quarterly, monthly, and weekly chunks.

 

For example, if your goal is to earn $200,000 a year, that means $50,000 per quarter, $16,667 a month, or $4,000 a week (based on 50 working weeks). This allows you to track whether you’re on target each week. If my income is lower in a particular week or month, I make it a point to schedule extra jobs to catch up. By tracking income this closely, I find it much easier to achieve my goals.

 

As we move into the final quarter of the year, it’s a great opportunity to reflect on your goals, evaluate your progress, and make any necessary adjustments to finish strong. Tracking your income and business performance regularly not only helps you stay on target but also motivates you to take action when needed. Whether you’re using a high-tech tool or a simple post-it note like I do, the key is consistency. Stay focused, break down those big goals into manageable steps, and take control of your success one week at a time.

 

Here’s to a productive and profitable fourth quarter!

 

If you’re interested in learning more about goal setting and growing your appraisal business, consider joining the Appraisal Referral Network at ReferAppraisals.com. We offer both free and paid membership options, tailored to fit your needs.

 

Dan Lindeman

Appraisal Referral Network

This week, the Federal Reserve lowered its benchmark interest rate by 0.5% to 4.8%, following over a year of steady increases aimed at curbing inflation. After peaking at 9.1% in mid-2022, inflation has now dropped to 2.5% in August. For the past 14 months, the rate had been held at 5.3% as part of the effort to stabilize the economy. Although the Fed doesn’t directly control long-term rates, its policies and market expectations play a crucial role in influencing them.

 

This is welcome news for the real estate market, and it could bring a much-needed boost for appraisers, especially those focused on lending work. The past few years have been tough for appraisers reliant on mortgage lending, with volume drying up considerably. Lower rates will increase housing affordability, likely driving more purchase transactions. Additionally, borrowers with higher interest rates will now have opportunities to refinance, especially for debt consolidation, which could result in more refinance volume.

 

In my business, about 20% of my work is in lending. I enjoy working with select AMCs and direct lenders because of the convenience—you’re on rotation, and the assignments land right in your inbox. What’s not to like about that? The fees are on par with private assignments, and in many cases, there’s less hassle. Submit the report, and you’re done, unless there’s a QC issue. It’s often simpler than private work.

 

While I welcome the increased volume that lower rates may bring, I caution fellow appraisers not to get complacent. I’ve already seen posts in forums celebrating the potential uptick in business from rate cuts, but if you’ve survived this slowdown, take it as a lesson for the rest of your career. Make changes now to ensure you never experience another dry spell like this again. The key to that is diversification into private work.

 

Private work includes appraisals for real estate agents (pre-listing, home measurements, cash buyers, stale listings), attorneys (estate work, date-of-death appraisals), and CPAs (cost basis appraisals). There’s also divorce and partition cases, tax appeals, guardianship, bankruptcy, immigration appraisals, and more. The opportunities are vast, and competition is lower compared to lender work. The demand is there and continues to grow.

 

Now is the time to start building the non-lender side of your business. Get out there—network, create a website, write a blog, set up a Google Business Page, engage in email marketing, social posting, or even paid advertising. The effort you put in now will pay dividends later.

 

If you’re unsure where to start, learn from other appraisers who have already diversified. Follow their blogs, join their coaching programs, or even reach out to them directly for advice. Other appraisers aren’t your competition—they’re a valuable resource. I certainly don’t claim to know everything about private work, but I do know what has worked for me and my business.

 

At ReferAppraisals.com, we offer micro-lessons—quick, 10-minute insights on real-world strategies. These aren’t CE courses; they’re practical lessons from actual experiences, designed to help you grow your non-lender business. You can learn about different types of non-lender assignments and the most effective ways to market and network.

 

My advice: Don’t forget this slowdown. Make it a priority to ensure it never happens again. Take time to diversify and market your business, and you’ll avoid the feast-or-famine cycle. Start making the necessary changes today to secure your future in this industry.



Dan Lindeman

Appraisal Referral Network

ReferAppraisals.com

For the past 10 years, I’ve made a deliberate effort to expand the private side of my appraisal business. During this time, I’ve established strong connections with agents and attorneys while enhancing my online presence. By consistently delivering high-quality appraisals and exceptional customer service, I’ve built a solid reputation. As a result, I’m fortunate to enjoy a steady stream of business from both agents and various attorneys, along with a strong online presence that generates a constant flow of inquiries and potential assignments.

 

My goal is always to go above and beyond for my clients and anyone who reaches out to me. Delivering excellent customer service means helping them, even when I can’t take on the assignment myself. Whether they need an appraisal outside my coverage area, a commercial appraisal, something time-sensitive, or a job I choose not to take, I make sure to let them know I can’t personally handle it but can connect them with another qualified appraiser or two. I approach it this way because they’ve come to me with a problem, and offering a solution or pointing them in the right direction is, to me, the essence of great customer service.

 

Offering this level of service has earned me numerous 5-star Google reviews, even from people who simply called for advice and didn’t end up needing an appraisal. Clients always appreciate being connected with another appraiser when I can’t take on their assignment, and as a result, they keep coming back to me whenever they need anything appraisal-related. I’ve built a reputation for being helpful no matter the situation.

 

When I first started referring clients to other appraisers, I didn’t know many outside of my mentors. I had to network, meet other appraisers, and learn about their specialties, coverage areas, and business practices. This way, when a client needed an appraisal I couldn’t handle, I could confidently tell them, “I don’t do commercial work, but I know a great appraiser who can help. Would you like me to connect you?” From there, I ensured the client was in good hands and taken care of.

 

At first, I believed that if I sent out enough referrals, the favor would eventually be returned. However, I found myself giving out far more referrals than I was receiving. That’s when I started requesting a referral fee for successful appraisals. After all, attorneys and agents ask for referral fees—why shouldn’t appraisers? I discovered that most appraisers were open to paying a referral fee, typically 10-15%, and they had complete control over the fee they quoted. Over the years, I’ve referred hundreds of appraisals to both local and national appraisers, creating an additional stream of monthly income. Would you like to add a new revenue stream to your private appraisal business?

 

This idea led to the creation of the Appraisal Referral Network—a platform designed to help appraisers connect with each other and exchange non-lender referrals. The appraiser who takes on the assignment earns the appraisal fee, while the referring appraiser receives a referral fee. It’s a win-win. The platform is free to join, and you can start accepting referrals from other members right away. We also offer a paid version that allows appraisers to earn a 12% referral fee when they refer an appraisal. Plus, the paid version provides access to non-lender lessons packed with actionable tips to help you grow your private appraisal business.

 

Dan Lindeman

Appraisal Referral Network

Eighty percent of my business comes from non-lender work, and about 30% of that is related to divorces. While the diversification away from lender-based appraisals is beneficial, it also brings its own set of challenges. Sometimes, these cases can be emotionally taxing, and other times, they require you to provide more than just professional expertise—sometimes, you need to offer emotional support. That’s what I want to talk about today.

 

When I was a member of the National Association of Divorce Professionals, I learned a lot about the divorce process. One key takeaway was understanding how the brain works under stress and how to handle clients going through such intense situations. This knowledge has been invaluable because I often see these scenarios play out with my clients.

 

A few weeks ago, I met with a woman in her mid-50s going through a divorce. Her husband had moved out, and she shared with me that they had been married for over 25 years. She discovered through her Ring camera that her husband was bringing another woman to their home while she was away. This woman turned out to be his childhood girlfriend, with whom he had reconnected and had secretly been giving money to for years. By the time she got to this part of the story, she was in tears and visibly distraught. At that moment, my role as an appraiser took a backseat, and I had to be there as a supportive listener. All you can do in such situations is be present and let the client express their emotions until they’re ready to proceed.

 

It’s heartbreaking to hear these stories, and it can be tough to separate your feelings from your professional responsibilities. However, it’s crucial to remain impartial when determining the property’s value. It’s okay to empathize with a client, but you must set aside those emotions when providing an objective appraisal.

 

Despite the emotional challenges, I find divorce appraisals rewarding because they can bring resolution to a difficult situation. For many, the home is the most significant asset, and knowing its actual value—not relying on estimates from sites like Zillow or Redfin—can help expedite settlements. I’ve seen couples argue throughout my time at a property, witnessed a spouse physically assault the other, and, most painfully, seen families with young children go through the distress of divorce. While the diversity of non-lender work is valuable, it certainly comes with its own unique challenges.

 

If you’re interested in learning more about private appraisals and divorce assignments, consider joining the Appraisal Referral Network at ReferAppraisals.com. We offer both free and paid memberships, and it’s a great way to connect with fellow appraisers and grow your expertise in this niche field.

 

Daniel Lindeman

Appraisal Referral Network