This week I came across a Facebook post in one of the appraiser groups that caught my attention. It was from an appraiser, not a newbie, who said they were working to shift their business model from mostly lender work to mostly non-lender. They were already doing some private work but wanted to make it the core of their business. Here’s a paraphrased version of what they said:
“I’m working on transitioning my appraisal business to focus more heavily on non-lending assignments. I currently do some, but I’d like to learn more. If anyone has experience and would be willing to hop on a call, I’d appreciate it. I have general questions about what’s included in non-lender reports, what’s left out, and how to market for this type of work.”
It was a simple and honest post. And it’s exactly how a lot of appraisers get started with private work.
What followed in the comments was a mix of encouragement, warnings, and strong opinions. Here are a few that stood out:
- “Non-lending work can be good and it can be just as bad as lending work. Private clients shop for price just as much, if not more. And yes, you are more likely to be pulled into a lawsuit.”
- “It’s hard to get volume with private work only.”
- “Don’t put all your eggs in one basket. Private work can be excellent, but it takes a lot of effort. Higher complexity, higher fees, and a higher pain-in-the-ass factor.”
- “Sometimes you do get higher fees, but too many people pretend private work pays whatever the appraiser wants, which is just fantasy.”
- And one encouraging voice said, “Yes, it can be done. I’m 30 years in, love what I do, and I’m 100 percent private work.”
That’s the reality. There’s a wide range of experience out there.
Some appraisers are thriving with private work. Some aren’t. And some struggle because they don’t approach it like a business.
Here’s what I see. Lender work has its pros and cons. So does private work. Neither one is perfect. But when you diversify your income streams, you create more stability. When rates jumped from 2.5 percent to 7.5 percent, lender volume dried up for a lot of people. But those of us who had built up our non-lender pipelines? We kept working.
The big difference is that private work requires you to market yourself and run your business like a real business. You can’t just wait for orders to show up in your inbox. You need to build relationships with attorneys, agents, fiduciaries, and past clients. And yes, some people will price shop, especially from your Google profile. That’s fine. I’m not trying to be the cheapest appraiser in town. I don’t need to be. When someone is referred to me by someone they trust, they usually aren’t calling anyone else. And if they do, they often come back even if I’m more expensive. Because trust matters.
I ended up giving that appraiser my number, and we spoke for about 20 minutes. I shared what’s working for me, what’s not, how I handle reports, and how I market. I didn’t sugarcoat it. I just told them what’s been real for me.
If you’re thinking about making the shift, or if you just want to sharpen your skills and create more options, start with a question. Join the Appraisal Referral Network. Make connections. Reach out to others who are doing the work.
This side of the business has been good to me and my family. It’s why I write these articles. And if you want help getting started, I’m happy to share what I’ve learned.
All the best,
Dan Lindeman
ReferAppraisals.com
