According to the 2023 Appraisal Income Guide, most high earners in the industry are successful at finding new customers and marketing their appraisal business. This could be because appraisers who are pros at obtaining new clients are able to generate a higher volume of work. Appraisers can significantly increase their salary by working more hours. For example, appraisers who worked an average of 11-20 hours per week earned approximately $59,000 in 2022, whereas those who put in 51 or more hours per week earned about $150,000.
If you want to boost your income potential, gaining new appraisal customers is imperative. For guidance, we asked our appraisal community, “What’s the MOST successful way to obtain new business, in your experience?” Then we followed that up by asking, “What’s your best tip for gaining referrals as an appraiser?” Read the responses and comments from actual real estate appraisers below.
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What’s the MOST successful way to obtain new appraisal business?
1. Getting onto approved rosters (40%)
Survey respondents identified “getting onto approved rosters (lender, AMC, FHA, VA)” as the number one way to get new appraisal customers and bring in business. Rosters may be especially important for those who are just starting out.
“When I first started appraising I went to each [AMC’s] web page that had an active license in my state and signed up. While there are a few I wish I had never heard of, this has generated most of my business starting out. As time goes on, I have started working on the other ways to get clients like marketing on Facebook and Linkedin, networking with others in the business, and taking classes to expand my knowledge.”
2. Referrals from past clients (19%)
Referrals can be a reliable way to generate new business no matter what industry you’re in. the appraisal industry is no exception. 19% of survey respondents agree that the most successful way to obtain new appraisal clients is by gaining referrals from past clients.
“I have lived in the area for 60+ years and have a good standing with the local lenders.”
3. Developing a niche specialty (15%)
Developing niche expertise can be a great way to stand out and succeed in the appraisal world. 15% of respondents say that specializations are the best way to drum up new business. Check out additional appraisal certification programs that we have available to enhance your career.
“Developing a niche in the appraisal industry sets you apart from the ordinary appraiser, and developing multiple niches can yield extraordinary results by giving multiple opportunities for a great return.”
“Specialized knowledge in niche markets when the techniques used are not typical can be a great way to build a unique business.”
More ways to get new appraisal customers
In addition to the top three survey responses outlined above, appraisers cite online marketing (10%) and networking in the community (8%) as effective ways to bring in new business. They also say it’s a good idea to gain referrals from other professionals, like real estate agents and divorce and estate attorneys—especially for non-lender appraisal work.
“Person-to-person interaction is more effective than just being a name on a list. If customers can put a face to a name, then you are more likely to be placed on a lender’s approved list.”
“Marketing online means free and paid advertising and reviews. These are critical to my business.”
“Blogs, speeches, and articles featured can help to promote non-lending business and attract private clients.”
“As agents are in touch with multiple people, I let them know I am available for non-lender work too.”
“Prominent divorce and estate attorneys can provide a reasonable, consistent stream of additional appraisal work for those appraisers with the proper know-how.”
Advice on how to generate referrals
Because so many appraisers said “referrals from past clients” are the best way to generate new appraisal business, we wanted to gain more insight into how to win those valuable customer recommendations. In a follow-up survey, we asked, “What’s your best tip for gaining referrals as an appraiser?”
In summary, respondents recommended:
- Doing high-quality work
- Being friendly and professional
- Establishing rapport with real estate agents and lenders
- Networking!
Read appraisers’ complete survey comments below for additional details and advice:
“Do great work, be trustworthy, and have reasonable rates.”
“Promote quality of service, speed, honesty, etc.”
“Talking to people, letting them know that you are an appraiser.”
“Treat everyone as a potential customer or referral source; that is be professional, friendly, and don’t hesitate to mention that you can help them with their appraisal needs.”
“Be friendly, courteous and professional. These characteristics are the bedrock of my business, practiced all the time, every day.”
“Be honest, friendly, and open to conversations, then clients and realtors are more than happy to send referrals your way.”
“Take the time to engage in small talk and ask questions of realtors that you are working with—often they remember you as a friendly, competent appraiser and send referrals your way.”
“Be on good terms with as many realtors as you can, and you will get referrals for private appraisals when people need a value for an estate before they list it for sale.”
“When you make a mistake, own it, particularly with realtors. I was once so late to an appointment that when I apologized I said her time was as important as mine and to please contact me for an appraisal at no cost to her at any point in the future. That became the beginning of the most referrals I’ve had to date from any one source.”
“Word of mouth and a great rapport with local real estate brokers and lenders.”
“Word of mouth in our small town.”
“Network with realtors.”
“I think the best way of gain referrals is by attending community events and also organizational events with the diverse audience of those in real estate and construction.”
“Meeting face to face with different professionals. Whether that is at a networking event or presentation. I find I am more successful when talking with people face to face.”
“Networking!! Participating in business networking events is a great way to gain referrals! Chamber of Commerce, Rotary Clubs, Lions Clubs, Real Estate Groups, and other business group meetings are great places to participate or offer to speak. Also participating in industry events (appraiser conferences) and groups (join an appraiser group – national and local) increases networking and referrals.”
“See if you can show up before a sales meeting at new construction sites to introduce yourself.”
“Visit your county’s probate offices and leave some business cards. Visit your local real estate attorneys, introduce yourself, and leave business cards.”
“Get to know your local real estate agents and brokers and offer your services by providing an appraiser Q&A session by attending one of their weekly or monthly office meetings. If that is too much, you can always offer up ‘appraisal insights’ via phone, email or text message to agents you meet during inspections, or when you make a call or text an agent for information about a comparable property, etc. Always hand out your business card so they have your info. They will appreciate the offer, and they will remember you for future referrals.”
“Doing private appraisals has been a successful way to get our name out in our smaller community. Word of mouth is the best compliment. Remembering that private appraisals or working with lawyers are often a good alternative to finding work when orders are not coming in from AMCs or lenders.”
What do the experts have to say?
We also asked some industry leaders to chime in on how to get new appraisal customers and thrive in today’s environment. Experts agree that the best ways to generate new business include developing niche specialties, networking, and leveraging online marketing tools. They also urge appraisers to diversify their client lists, branch out into non-lender work, and get onto the FHA- and VA-approved rosters.
“Now is the time for appraisers to upgrade their skills, and develop niche expertise such as luxury homes, high-efficiency homes, relocations, divorces and estates, or expert witnesses. And get on those FHA and VA rosters!” – Jo Traut, Chicago-based residential appraiser and Appraisal Curriculum and Content Specialist at McKissock
Grow your appraisal business with specialty certifications
One of the best ways to grow your roster of appraisal clients is to continue growing your skill set. McKissock’s Appraisal Certification Programs will put you ahead of the competition, widen your scope of work, and boost your business opportunities when you get certified in different industry sectors. We also offer appraisal CE courses in non-lender work, such as divorce and estate appraisals and expert witness testimony, to help you diversify your skills and reach new clients.
