I recently came across a post on one of the appraisal forums that asked: Is residential real estate appraisal a lucrative profession, or just a glorified side gig? It is a simple question, but one that always sparks debate. I thought it was worth writing my own response here, not just to share my perspective but to answer the question for myself.
The responses in the forum ranged widely. Some believe the industry is on its last legs, with fees declining, AI creeping in, and AMCs controlling too much of the work. Others said it works well as a part-time option or second career, especially if you do not depend on it as your primary income. And then there are those who acknowledge what many of us know: this profession has never been easy money, and it demands effort if you want it to be rewarding.
The truth is straightforward. Appraisal is what you make of it. If you treat it like a hobby, it will perform like one. If you treat it like a business by building relationships, marketing consistently, diversifying your client base, and adapting to changes, it can be both stable and lucrative.
I’ve been the sole provider for my family for nearly twenty years, and this career has supported us very well. My market has plenty of people and homes, but also plenty of appraisers to compete with. Has it been challenge-free? Not even close. There are slow seasons and plenty of stressful days. But that’s no different than what real estate agents, attorneys, or contractors face. The ones who make it are the ones who adapt and keep moving forward.
It is also important to acknowledge that the days of easy lender work and high fees are gone. That model may never come back. The path forward is in treating appraisal as a true business, expanding into non-lender work like estates, divorces, and tax appeals, and committing to the long-term relationships and marketing efforts that bring in consistent clients.
So, is appraising lucrative? Yes, it can be. But only for those who approach it as a profession, not a side gig. If you are interested in becoming an appraiser, a good first step is completing the required coursework. You can get started with the necessary classes here: https://referappraisals.theceshop.com/
If you are ready to grow beyond waiting for the phone to ring, the first step is connecting with other appraisers who are doing the same. That’s why we built the Appraisal Referral Network: a place to share referrals, build your non-lender business, and create more opportunities. You can join for free, or choose a paid membership for added perks. Visit ReferAppraisals.com to get started.
Comments (2)
I wonder if everyone moves into non-lender work will they bring that same mindset of AMC low fees, quick turns and limited customer service and quality. If so, it will impact what those of us that have built over the years a good, profitable business ready to spend the time necessary to educate the client all along without destroying pricing. Some of my potential clients are shopping for fee and haven’t got a clue what they need. Hence, the importance of spending time with potential clients to actually understand what they need and to provide the benefit of my service. Client hangs up calls 4 or 5 appraisers who give them quotes over the phone with limited research or none at all. They then call back to tell me my fee is in excess of double their other quotes. They of course ask why. Then I am back at my customer service conversation to remind them of our initial conversation, and this is why I charge what I charge as I consider the work actually needed. Folks if you are following Dan’s advice, and moving into the non-lending world, please consider yourself like a professional and charge for your time, knowledge and complexity of the work you are completing. If you are working on non-lender, it is equally as important if not more so, because you are working to educate your potential client on what you do, how you do it, and the importance of it being done right with using the correct definition of market value. Just because it is a 1,300 sf home doesn’t mean it is an easy job. If you think of it that way, they you are destined to get onto someone’s bad list.
Well said Brad! With private work, customer service maybe the most important skill for appraisers to learn. Heck even with lending work, if you treat that underwriter, amc rep, or whoever with distain, that helps no one. When you combine great service and your appraisal skillset and you will always win whether its lender work or private work.