You have heard me talk (a lot!) about Tier I, Tier II, Tier III, and Tier IV appraisal office skills. Now we’re going to talk about Tier V office skills, which are a vision over the first three.
The person who occupies Tier I or Tier II basically has no appraisal skills because, at these levels, he or she does not need them. These responsibilities include answering the phone, taking orders from customers, pulling tax data, making sure the copy machine has paper, and so forth. These are not particularly challenging positions, but they are necessary for the modern appraisal office to run efficiently.
Someone occupying a Tier III position is probably an appraiser . If they’re not, they understand appraising. Someone who can carry out Tier III assignments understands what it means to measure property, pull comparable sales (not merely data), make adjustments, recognize depreciation, and so forth. A Tier III functionary may be a fully state-credentialed real estate appraiser with more than a few year’s experience.
Tier IV is about management. You do not need to be an appraiser to manage the office. You just need to be able to execute on the directives of the Tier V business owner.
Which leads us to the Tier V individual. The Tier V is basically the business owner, or a partner in the business. The Tier V individual not only understands all facets of real estate appraisal, he or she also understands personnel management, marketing, accounting, advertising, search engine optimization, website design, prospecting for new clients, and so forth. To be a successful appraisal business owner is not something easily done but can be highly rewarding.
The man or woman who has ascended to Tier V has a vision of how the company should run, both now as well as in the future. It is not necessarily his or her job to administer the company (again, that is Tier IV). Rather, it is his or her job to have a vision for the company, share that vision with the Tier I, Tier II, Tier III, and especially Tier IV people, and then execute on that vision so that it becomes reality.
In other words, the Tier V person is more visionary than technician. There will always be some need for Tier III expertise in the Tier V appraiser. However, the Tier V appraiser must function at 30,000 feet, not ground level.
Now, in your own appraisal business, are you operating (at least most of the time) at 30,000 feet , or are you operating at ground level? If you’re at 30,000 feet you are a visionary, you are an entrepreneur, you are a Tier V business owner. There is nothing wrong with operating at ground level on occasion; however, that’s not where you belong. That should be left up to your general manager or your office manager. They make sure the money is spent wisely. You, the visionary, make sure the money comes in.
Now go out and create some value (not only for yourself but for your clients, customers, contractors, and employees, too)!
For more information on this subject, please download and listen to The Appraiser Coach Podcast Episode: 267 Now There is a Tier IV?