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

How many appraisers are truly familiar with valuing properties with solar? I’ve completed a couple dozen assignments on properties with solar, whether the panels were leased, financed, under a PPA, or owned outright. Just last week, I handled two more assignments involving solar—one for setting a listing price and another for a divorce case. Understanding how to appraise properties with solar can be a valuable specialty that enhances your non-lender assignments and sets you apart, potentially increasing your business volume.

 

Coincidentally, I recently attended Mark Buhler’s 7-hour solar continuing education class through Appraiser eLearning, and I highly recommend it. Even if you’re already familiar with valuing properties with solar, this class serves as a great refresher and taught me a lot about using the PVValue Tool more effectively. Definitely check out his class!

 

I wanted to share my experience appraising two properties with solar systems this week. The first property was an estate inherited by a son whose father had purchased solar panels 3-4 years ago with a loan. The son hired me to determine the property’s value for setting a listing price, as he had received multiple offers from rehabbers. We discussed various appraisal approaches, including factoring in the solar panels as if they were paid off or excluding them altogether, and how each scenario could affect the property’s marketability and saleability. Due to the additional work required for analyzing the solar aspect, I charged an extra $100 for this assignment. I was chosen for this job specifically because of my familiarity with solar systems.

 

The second property was part of a divorce case and involved a particularly challenging situation. The couple had purchased solar panels through a loan from a solar company. Although they believed the installation was permitted, it turned out the company hadn’t secured one, leading the city to require the removal of the panels. At the time of my appraisal, the panels were lying against the house, and the roof was leaking due to the removal. To make matters worse, the solar company had since filed for bankruptcy, leaving the couple with a loan but no functioning solar system. In this case, the impact of the solar panels on the property’s value was $0, but the roof damage did affect the overall valuation.

 

So, how can you use your solar experience and knowledge to get more private work? I maintain a database of about 750 agents, and I send them weekly emails, including one specifically about solar. Here’s a link to that email. How many appraisers in your market are reaching out to agents to let them know you can assist with listings that have solar panels? You could also offer to speak at real estate offices about solar and how to properly value properties with solar installations.  So, put your continuing education to work this week to boost your income and expand your business!

 

If you’re looking for more private work, consider joining the Appraisal Referral Network at ReferAppraisals.com. For just $20 a month, we provide non-lender education with actionable tips to help grow your business. You can also join our referral network for free, which connects you with peers and increases your chances of receiving referrals for private work.

 

Daniel Lindeman

Appraisal Referral Network

Whenever I leave the house, it’s inevitable that I’ll run into someone I know. My wife always cringes when I start chatting with them—I’m the social one, and she’s not as much. It wasn’t always like this for me. When I decided to step out of my comfort zone and expand into private appraisal work, I realized that networking and building connections were essential. This brings me to a recent connection I made from running into a familiar face.

 

My son recently turned 16, so we took him and some friends to TopGolf to celebrate. While we were having a great time, I noticed someone I knew in the bay next to us—a friend’s son who works with his father in commercial insurance. We started chatting, and he mentioned he was there with his networking group for a social happy hour. I asked if there were any attorneys or agents in his group that I could meet. Although neither the estate planner nor the agent in his group was present, he invited me to visit his networking group, and I agreed. Even though I’ve been part of a networking group for the past 10 years (see prior blog: “Is Joining a Networking Group Worth It?“), I thought it was a great opportunity to expand my connections.

 

A few days later, I attended the meeting and was introduced to an estate planning attorney. Although the real estate agent wasn’t present, I plan to connect with him in the future. The estate attorney, who recently started her practice, didn’t know any appraisers. We scheduled a coffee meeting to learn more about each other’s businesses and explore potential collaboration. While I’m not sure where this will lead, it’s certainly better than waiting at home for my phone to ring.

 

My advice to fellow appraisers is to get out there and network. Expand your connections and see where it takes you. I turned a fun evening celebrating my son’s birthday into a potential business opportunity that could result in thousands of dollars in new business. It’s not hard—you just need to put yourself out there and be open to new opportunities.

 

Appraisers, if you’re looking to learn how to market your appraisal business and step out of your comfort zone, join us at ReferAppraisals.com. We offer free membership with valuable resources and opportunities to earn additional income through referrals or accepting assignments. For just $20 a month, our Elite Membership provides actionable educational micro lessons to help you grow your non-lender business.

 

Dan Lindeman

Appraisal Referral Network

ReferAppraisals.com

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

Given the recent, ongoing, and forthcoming changes in the real estate appraisal profession, are you feeling the pinch when it comes to making ends meet as an appraiser? What if I told you there’s a hassle-free way to boost your income without draining your savings or diving into another round of learning curves? Enter the Appraisal Referral Network – potentially your ticket to a passive income stream, additional non-lender volume, alongside your existing appraisal business!

 

ReferAppraisals.com offers a straightforward solution for earning extra passive income by referring assignments you might otherwise turn down to your peers. The platform simplifies sending and receiving referrals, ensuring transparency, and clarity about your earnings. Now, you might be wondering, is sending and receiving referrals USPAP compliant? The short answer is yes, it is.

 

Enrolling in the membership site doesn’t require any USPAP disclosure. When you refer an assignment to another appraiser, there’s still no need for USPAP disclosure since you’re not receiving the assignment yourself; you’re simply passing it along to another appraiser. Essentially, in this scenario, you haven’t taken on a client or an assignment, so there’s nothing for you to disclose.

 

If another appraiser refers an evaluation assignment to you and you choose to accept it, then you’ll disclose that you accepted the assignment on a referral fee basis from another appraiser through ReferAppraisals.com, to which you subscribe monthly. Disclosing the specific amount of the referral fee or the monthly subscription fee isn’t necessary.

 

However, if you opt not to accept the referral for any reason, there’s no need for disclosure since you haven’t accepted the assignment and therefore haven’t received a referral fee.

 

Consider this scenario: How frequently do clients reach out, asking if you know an appraiser in a different market or if you specialize in a specific type of property? It’s a common occurrence, isn’t it? But here’s the beauty of referring an assignment to another appraiser within the same network – no uncomfortable questions about referral fees. Since you’re directing the assignment to another appraiser who is also part of the website, all revenue splits are disclosed upfront, and the platform seamlessly handles the collection of the referral fee. Simply put, everyone is on the same page. Exploring the Appraisal Referral Network further is a wise move.

 

TIMOTHY C. ANDERSEN, MAI, MSc., CDEI, MNAA

The Appraiser’s Advocate!

 

My phone often rings with appraisal inquiries from clients, Google searches, or referrals. However, more often than not, these requests fall outside my specialization, service area, or beyond my expertise level. Sometimes, they’re urgent assignments I can’t accommodate or simply I prefer not to take on for various reasons. So, what’s the best course of action for an appraiser in these situations? Do you just turn down the order and bid farewell to the potential client? Here’s what I decided to do.

 

When faced with these requests, I take the initiative to provide my clients with referrals to colleagues. For commercial assignments, I connect them with 2-3 appraisers I know in the area. If it’s an out-of-area request, I tap into forums or Facebook groups to locate an appraiser in their vicinity. And if all else fails, I guide them to utilize the Appraisal Institute website to find an appraiser locally. I do this because, for non-lending and private assignments, my primary objective is to serve as a valuable resource to my clients, even if I’m unable to take on the assignment myself. By offering this level of customer service, I ensure that they’ll consider me their go-to appraiser in the future.

 

Now, how can you earn extra passive income each month? Simply start referring clients to your fellow appraisers and collect a referral fee. It’s a win-win situation all around: the receiving appraiser secures the business, you earn a referral fee, and most importantly, the client’s needs are met. Referrals fees are permitted by USPAP and require a simple disclosure statement within your report.  Personally I generate hundreds of dollars in additional passive income each month by referring assignments. How much could you add to your monthly income by sending out referrals? 

 

This was the driving force behind creating ReferAppraisals.Com to facilitate connections among appraisers nationwide and exchange of non-lender and private referrals. Whether you’re new to the non-lender side or a seasoned appraiser, there’s something here for everyone. Newcomers can gain valuable insights into handling these types of assignments through real-world education and by receiving referrals from their peers. And for the the seasoned or retired appraisers, it’s an opportunity to boost revenue and earn passive income whenever the phone rings by sending out referrals to your peers.  

 

Dan Lindeman

Appraisal Referral Network

ReferAppraisals.com