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Last Post 08/02/2010 3:59 PM by  Ray Hall
Real Estate Appraiser - Expanding Business into Adjusting?
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Phineas
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06/17/2010 7:22 PM
    I'm located in Chapel Hill, NC and I'm working on getting my Residential Appraisal Certification - I'm about 3/4 of the way through my apprenticeship (under my dad).  He recently had a rental property catch on fire, so I've been finding out more about the fire insurance process, and they are now going through the "appraisal clause" due to discrepancies between the insurance co.'s adjuster and our local contractors.
     
    Anyways, I've become interested in trying to diversify our business, and it seems like this could be a good area to branch out into.  I've got a lot of building experience and understand materials/labor/etc. and have the general real estate knowledge I've been gaining, so this really seems like it would tie in to our existing business.  I understand I need to take the appropriate coursework and tests, and then become licensed through the dept. of insurance.  After doing this, what's the next logical step?  I haven't found anything about a formal apprenticeship requirement, but I know I'd need to find someone (or a company) experienced to teach me the trade.  Is this how people typically get into the profession, and if not how to you get started?  (I'll keep reading through the archived forums)
     
    If I were trying to do this part time, is it best to work for a company? I'd much rather do it independently if possible, which leads to my next question.  Who, and how, do you advertise to?  How do you typically charge?  By the job or by the hour?
     
    Hopefully this doesn't piss anybody off (I saw some of the other recent posts about getting started...), but I'm just starting to research this and somebody on my appraiser forum reccomended this site.
     
    Any advice/opinions/answers would be greatly appreciated.
     
    Thaniks,
     
    Phineas
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    Tim_Johnson
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    06/19/2010 7:38 AM
    Come on in, the water is just fine
    Tim Johnson
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    magnoliaadj
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    06/20/2010 1:42 PM
    The only similarity between real estate appraisers and insurance adjusters is the subject, buildings residental or commercial. Holding an adjuster's and aprasier's license and going thru the 115 hours of initial training for appraisal I know. Real estate appraisal is highly manipulated by the lenders/buyers and is EXTREMELY SUBJECTIVE. Never have I been asked to do an apprasial without the requestor first stating the value necessary for the loan to go thru and sale to happen. It is obvious from many appraisals I have seen thta the appraiser had not a clue as to what a true comp is. And the appraiser cannnot be held accountable for a crappy appraisal they argue it is opinion only when questioned. The main question I have for you is how do you expect to get into the adjusting business if you don't even know who your client is and how to effetcively market the entitiy where you get assignments.
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    dawgs41
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    06/20/2010 11:58 PM
    My husband is trying to do the same thing.  He has been an appraiser for years here in the Atlanta area, recently passed his Adjusters licensing exam, and is looking to diversify into this arena.  I will be curious to see what kind of replies you get.
     
    Perhaps you and my husband can chat sometime and bounce some ideas around.  I'm worried that it is going to be tough to break into this business because of lack of experience (but how do you get experience...the classic catch-22!)
     
    GOOD LUCK!!
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    claims_ray
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    06/21/2010 3:16 PM
    No experience the best bet is a large event. Large event will most likely not occur at or near your home and then the jobs you might have as an appraiser will be lost to someone not away from home and you may lose a client.
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    Ray Hall
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    Posts:2443


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    06/21/2010 6:00 PM
    If you passed a real estate appraisers license, you have enough brains to estimate storm damage. I would get an $18.00 book from a big box store on framing and learn how to build a house. I would then drive and watch people build houses. I would then walk around a large store in the lumber and fixture, trim department, shingle, doors and window and get sf prices in your mind, then add cost to get to site and then figure $20.00 per hour to do all the work and see how much it cost ters how many o build a house. As the workers, how many sqs per day, paint how may rooms per day, everthing that goes into a house put a unit price to it.   Then try to estimate what it would cost if a large tree crashed through your kitchen. This is about 2-3 weeks work. Then get a license, then send out resumes to the hundreds of catastrophe vendors in the USA. Then learn axctimate and hope you get called if a major hurricane hits the USA. Have a credit card with a $10.000 line of credit and a good car and an 16 foot ladder. Good luck. You will get about 30 losses to turn in or turn back in about 2-3 weeks. No cure..... No pay.
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    WILLIS
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    06/22/2010 12:36 PM
    I hold both a RE Appraisal license and a Adjuster License.  Those two fields are not similar. The former is only concerned with the value of the property to please both the lenders and real estate agents  while adjusting requires detailed knowledge of the costs to rebuild or repair a property and the need to please carriers but worse inept file reviewers. Appraisers have no clue what Xactimate is or does  likewise not too many ajdusters could handle the research needed to complete an appraisal sheet.  
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    Ray Hall
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    07/14/2010 7:49 AM
    Have you new people practice writing an estimate this week. You are wasting everones time, if you have not!   I thing it takes 10,000 hours of study to be a complete adjuster, thats 2000 per year for 5 years, kinda the industry standard.
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    Steven77
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    07/14/2010 8:44 PM
    Actually appraising is very similar in many ways to adjusting. I am an appraiser and adjuster also. I'm surprised to hear some appraisers say that is nothing alike. Then again every appraiser does not know how to write a good estimate either. Any appraiser that works alot of REOs must have some estimating skills. In the appraisal industry it's called "cost-to-cure." Basically it means the costs to bring the property back into marketable condition that is typical for the area. Also, some may have never did much rural appraising where you have to estimate costs on a regular basis when there is little market data. Just because one holds a license does make him an appraiser. Besides the itemized estimating, there is a cost approach that goes into every report. Generally appraisers use Marshall & Swift Cost Handbook, however, there are many more choices such as Craftsman etc..This is different than a cost to cure or insurance work because these costs are for replacement cost purposes. Replacement cost new differs from reconstruction costs that the insurance industry uses. Also there is reproduction costs. That is for a different day. An appraiser says that they are not similar probably either is not experienced, doesn't take the work seriously or covers cookie cutter suburban areas and has probably never did much REO work.

    There are many things besides that that are similar. Well how about diagramming areas, dealing with angry homeowners, anal underwriters, completing reports that are under review and scrutiny, the constant analyzing, writing narratives about property...etc..

    The biggest difference is of course learning coverage. I think a successful adjuster can excel and be a successful appraiser and vise versa. However, the average appraisal takes much more time to complete than an appraisal. Sometimes you have to deal with cost estimates AND always determine market value whereas an adjuster has to write estimates and determine coverage. One that is experienced in either would can a fairly smooth transition into the other.
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    Steven77
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    07/14/2010 8:47 PM
    Actually appraising is very similar in many ways to adjusting. I am an appraiser and adjuster also. I'm surprised to hear some appraisers say that is nothing alike. Then again every appraiser does not know how to write a good estimate either. Any appraiser that works alot of REOs must have some estimating skills. In the appraisal industry it's called "cost-to-cure." Basically it means the costs to bring the property back into marketable condition that is typical for the area. Also, some may have never did much rural appraising where you have to estimate costs on a regular basis when there is little market data. Just because one holds a license does make him an appraiser. Besides the itemized estimating, there is a cost approach that goes into every report. Generally appraisers use Marshall & Swift Cost Handbook, however, there are many more choices such as Craftsman etc..This is different than a cost to cure or insurance work because these costs are for replacement cost purposes. Replacement cost new differs from reconstruction costs that the insurance industry uses. Also there is reproduction costs. That is for a different day. An appraiser says that they are not similar probably either is not experienced, doesn't take the work seriously or covers cookie cutter suburban areas and has probably never did much REO work.

    There are many things besides that that are similar. Well how about diagramming areas, dealing with angry homeowners, anal underwriters, completing reports that are under review and scrutiny, the constant analyzing, writing narratives about property...etc..

    The biggest difference is of course learning coverage. I think a successful adjuster can excel and be a successful appraiser and vise versa. However, the average appraisal takes much more time to complete than an appraisal. Sometimes you have to deal with cost estimates AND always determine market value whereas an adjuster has to write estimates and determine coverage. One that is experienced in either would can a fairly smooth transition into the other.
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    Ray Hall
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    Posts:2443


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    08/02/2010 3:59 PM
    How much have all you new people learned or improved your adjusting skills since June2010. If you really think it will help, but the hands thing is a waste of time, give me a call and we will have a cup of tea(green) and I will lay my hands on our head.
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