How to get started in Commercial Real Estate Appraisal?
Hi, 

I’m looking for some advice on how to start a career in commercial real estate appraisal. What are the job postings I should be looking for? Should I try applying like places like CBRE and C&amp;W or look for smaller firms? Any application/interview advice? Lastly, what is the typical career path?

A little background on me is I graduated college last December and have been working as an assistant project manager/estimator in construction since then.

Any input is greatly appreciated, thanks!
[{"id": "irrqhlu", "text": "[appraisalinstitute.org](https://appraisalinstitute.org)\n\n[https://appraisersforum.com/forums/](https://appraisersforum.com/forums/)", "replies": [], "depth": 1}, {"id": "irsnbw1", "text": "Construction ain't going so hot?", "replies": [{"id": "irswmq2", "text": "Not that, I just think I\u2019m more interested in real estate than construction. Also, correct me if I\u2019m wrong, but I think CRE is a better career choice as far as earning potential, work life balance, and overall career growth", "replies": [{"id": "irtloky", "text": "CRE appraisals are much more complicated than residential so I think it ends up being a wash especially early in your career. In most states to be a licensed or certified appraiser you need to do 2000 and then an additional 2500 hours on residential transactions before you can, Attend education classes for commercial appraisals and then do a commercial appraiser apprenticeship. I have 13 years experience in property management and asset management and commercial real estate so I\u2019m gonna go through the whole thing but many appraisers don\u2019t mind doing let\u2019s call it 40 residential appraisals A month versus let\u2019s call it two or three commercial appraisals and making the same amount of money.", "replies": [{"id": "iru348h", "text": "That is incorrect about the split hours. You can start working commercial day one and it's really only 2000 or 25000 hours depending on state.", "replies": [{"id": "iru529e", "text": "Yup, and in my state, that\u2019s the way it is i mention above every state is different", "replies": [], "depth": 5}], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "irt650n", "text": "sent PM thanks for posting", "replies": [], "depth": 1}, {"id": "irt9kas", "text": "My two cents.  This is a great career choice.  The field is typically older and I know of a few guys that are having a difficult time with their succession planning.  At the same time lenders are struggling to meet Dodd Frank guidelines with their appraiser requirements.  In short it\u2019s a strong market with steady demand and decreasing supply.", "replies": [{"id": "irtmbgj", "text": "Yes and that is why I got into it as well on top of having a passion for commercial real estate. \n\nHowever once you get into the education you realize that all of those numbers are factual there is an insane amount of appraisers in their 60s 70s and 80s looking to retire in the next five years with no succession plan, but that is because in the 1980s appraisers were very much responsible for the recession from their practices. They were unethical, there was no governing body, there was no regulated levels so anyone could assign any amount of value to a property based on any number of reasons they created with any number of credentials they think were applicable. They also took a lot of cuts from loans that came from those appraisals whichcan\u2019t happen anymore. \n\nThe federal government put together a regulation package on what it takes to become an appraiser and then basically said the states can or cannot follow it they can do whatever they want however if they don\u2019t follow it then their state appraisers would not be able to do any appraising for transactions that included lenders that were FDIC insured which is basically all banks so they could really only appraise cash deals which is definitely the minority in real estate transactions. All of those appraisers from the 80s and early 90s before the regulations were put in place we\u2019re grandfathered in it is a ridiculous feat followed by a year of making less than half of what I made as a commercial property manager to do an apprenticeship which are hard to find for most people\n\nI\u2019ve had connections in the business for over a decade so I\u2019ve had for appraisers tell me they would take me on once I was ready and the appraisal institute will also match me at an apprenticeship so I can get my licensure where I\u2019m doing my studying\n\nThe federal regulation and the apprenticeship program has suffocated many new apprentices out of the trade, I think only recently some states are about the bachelor degree requirement to at least get the first license that you need did your apprenticeship. And those are the true reasons why appraisers appraise until the day they die the money is great and they never had to get the regulations and that\u2019s the true meaning on why there\u2019s not a lot of new appraisers coming in because it\u2019s ridiculous and most people will face financial hardship to obtain it well into their careers. However I\u2019ve also been able to build a small multi family portfolio and an insurance agent and I have residual money coming in most people can\u2019t do it unless they\u2019re living with their parents and straight out of college but then they really have no real world experience in real estate", "replies": [], "depth": 2}], "depth": 1}, {"id": "irtldig", "text": "I started my appraisal classes in July. I\u2019m in Massachusetts every state has their own regulations on this license so first find out what your state regulations are and if you are a female or a minority male or female ethnically the appraisal institute has partnered with Fannie Mae and Freddie Mac to provide scholarships to off set the upfronts which for me total $10,000 to get the level of licensure I want. And it\u2019s covered because I did receive a scholarship and it was pretty easy to get", "replies": [], "depth": 1}, {"id": "irtltkh", "text": "If you want to make the big bucks you can specialize in eminent domain appraisals which from my understanding must have like seven appraisals done before the domain is seized by the municipality. You can also focus on what\u2019s called special used buildings and commercial which includes schools, houses of worship, country clubs, sporting arenas and something to do with railroads", "replies": [{"id": "irtzndg", "text": "You can make a good living as an appraiser, but very few make more than $200K.", "replies": [{"id": "iru2dlu", "text": "If I make 125k I\u2019m over the moon.  Women getting paid 30% less in property and asset management where I was for 13 years was very real so I got rental properties and set up a Residual income stream via insurance license so if I make up a $125k appraising, And hopefully at that time I\u2019ll be living in Florida the commercial real estate epicenter of the country in my opinion, Plus my other income I\u2019ll be a OK", "replies": [{"id": "iru8b4e", "text": "$125K is very doable.  If that's your goal, so be it.  Fees in Florida have historically been in the toilet since 2008.  I'm only getting a Florida license now to do as many damages appraisals as I can due to this hurricane.  This kind of work pays well, but you have to go after it.", "replies": [{"id": "irur8k3", "text": "Yup! Good luck in Florida it\u2019s wild right now.\n\nI know all appraisers took a hot in 2008 time\u2026 but it rebounded, according to the leading trade association when it comes to CRE appraisals in Florida as 2021:  \n\n On average, you're looking at around $4000, but it can vary quite considerably. Depending on the property, it's not unusual to see an appraisal raise as high as $10,000 and, in some cases, even higher. You certainly shouldn't plan to spend any less than $2000\n\nIn MA $4,000 to $10,000\nIn CA $2,000-$5,000\n\n\nIn residential below are the average fees charged in CA,FL,MA,NY and TX as of 2021 \n\nCA $355-$450\nFL $325 -$425\nMA $325-$425\nNY $325-$425\nTX $355-$500", "replies": [{"id": "irxzhuc", "text": "I would be focusing on specialized property types.  \n\nI'm in CT and travel to do work in MA frequently as the fees are so high.  It's just a license, and may or may not pan out.", "replies": [{"id": "iry4ac5", "text": "I\u2019m from MA- maybe we will dance on an eminent domain appraisal one day since they need so many.", "replies": [], "depth": 7}], "depth": 6}], "depth": 5}], "depth": 4}, {"id": "iruzqav", "text": "What type of fee split are you on? How many years have you been in the industry?", "replies": [], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "irtv38n", "text": "I work in CRE valuation for one of the bigger firms.\n\nJob posting to look for: look for job postings that say Valuation Associate or Valuation Analyst. That\u2019s what you are looking for\n\nI\u2019d try the big shops first. Along with the two you mentioned I would consider looking at Newmark, JLL, and Colliers. All big firms too. Others will tell you that BBG, Integra, Apprise are big too but they are smaller than the three C\u2019s or Newmark and probably smaller than JLL in my opinion. \n\nApplication/interview advice? You want to relay you\u2019re looking to learn as much as you can and that you\u2019re competitive. This job you compete with yourself in many ways. I always look for people who have a competitive background personally. I don\u2019t care if you played sports or were a spelling bee champion, I see the competitiveness the same. \n\nCareer path? Effectively you do the same job throughout much of your career but you work on more complex properties, scopes, etc. or you relay your knowledge of valuation into something else like asset management or brokerage. Good luck. DM any other questions if you have any, happy to give you my thoughts.", "replies": [{"id": "irtzz4l", "text": "JLL doesn't really have an appraisal practice.  Their main guy, Eric Enloe left and took the whole staff that was worth anything with them. Like 10 MAIs work for the whole company. \n\nC&amp;W is the king nationally. CBRE, Colliers, BBG... all variable.  Apprise pays well and is not in the race to the bottom. Integra and Valbridge are very hit or miss due to their franchise structure.", "replies": [{"id": "iru3uzh", "text": "Would agree with Time that JLL is much smaller than the other 4. Would disagree that C&amp;W is some sort of \u201cking\u201d nationally. Think all 4 of the others (C&amp;W, Colliers, CBRE, and Newmark) are likely considered the best in various markets.", "replies": [{"id": "iru6i72", "text": "I just reviewed a moderately complex Newmark report. 650 pages.  That is just incompetence.  Appraisal reports should not be longer than War and Peace.  This was out of NYC, their flagship office.  They are not the best in any market, and the best people they have will leave when their contracts are up.\n\nUltimately, I don't think the large national structure works very well and won't last.  I think in the years to come appraisers who worked for these firms are going to get sued personally.  \n\nStart at one of them perhaps, but work to get into a niche they can't touch. I'd rather be appraising chicken farms in Arkansas than multifamily in a top 10 metro.", "replies": [], "depth": 4}], "depth": 3}], "depth": 2}, {"id": "irw6rzb", "text": "Thanks for great info. One more question, how is the earning potential?", "replies": [{"id": "irxtsxz", "text": "Effectively it\u2019s limitless once you are commission based. Most companies will put you on a salary for 6-12 months to get your feet wet. Kind of depends from there on the preference of the office. I always felt I was above a majority of my piers (other professions but similar type professions) in the same market as I was but I will tell you I also worked more hours than most of them. That\u2019s the funny thing about commissioned based pay, you get a taste for it and you want more.", "replies": [], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "iruflc7", "text": "I\u2019m a commercial appraiser in Chicago that is looking for more trainees", "replies": [{"id": "irvwx5h", "text": "Remote availability? I\u2019m next door in MO.", "replies": [{"id": "itwjysx", "text": "Not really possible in appraisal. You have to go see the buildings", "replies": [{"id": "itwnc6x", "text": "This is true, I wasn\u2019t sure if you had an appraisal review team or such..", "replies": [], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "irya0o8", "text": "Where are you located?", "replies": [], "depth": 1}, {"id": "ivic888", "text": "Check out this video  \n\n\nhttps://www.youtube.com/watch?v=QA9CZQSVbrA&amp;ab\\_channel=TechRealEstate", "replies": [], "depth": 1}]