After attending recent conferences and hosting a webinar, I’ve realized that real estate appraisal providers are scared for the future until they learn what the future will bring. I think it’s clear where things are going.
Let’s start with talking about technology, and I don’t mean working from your phone. I mean technology with data, meaning data that is being put into or taken from your report. As real estate appraisers, we used to be the keepers of the data. Now things have changed. Now we are the analysts of the data.
Many appraisers have fears and concerns over others taking and using their data. As an optimistic realist, this is just part of reality. Of course we should fight to better our positions, but we must also accept that things change. The key is to know how to adapt to these changes. You may have to change your business model a little bit.
Around 2009-2010 (when the housing bubble crash hit my area of Idaho), there were five people including me working in my firm. We’d spend the day going to our areas doing inspections, and later write our report together. It was a fun and successful time. Then 2010 came. I’m more profitable than I was before. I’m not necessarily making more gross, but my take-home is more than it was in 2009. That’s because I changed my business model.
It’s difficult to change things that have thus far worked. It’s getting into a new headspace. We have to be willing to step back, look at how we do things, and be willing to do things differently. You may or may not be willing to participate in all the new things happening. Fees may be a roadblock.
Decide if you want to be part of the change. Do you even want to stay in the real estate appraisal business if it changes? What procedures and business models need to change in your own life to be profitable in the future?
The future is bright for appraisers. Things will look different in a few years. We don’t need to fear change, only change with it.
For more information on this subject, please download and listen to The Appraiser Coach Podcast Episode:
4 Comments on “The Valuation Business and its Future”
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Change can be scary, but full of opportunities. Hopefully there are some opportunities for appraisers, but I’m optimistic right now.
There was a time when I was on the brink of giving up appraising. I have your blogs and podcasts to thank for inspiring me to make little changes along the way. Over time, these changes have made a huge impact on the way I do business and as a result, live a better life. Thanks Dustin!
This is one of your best posts. There will always be demand for ethical, efficient, and sharp appraisers who run an efficient business with good communication.