When a person buys a property, whether it is a commercial or residential property, the lender generally needs an evaluation of the property’s value by an appraiser to make the sale easier. These appraisers are generally working for appraisal management companies.
People may start an appraisal management company for different kinds of reasons. However, they hold a good level of experience in appraising the value of commercial or residential properties and want to be their own boss.
To start your own appraisal management company you need to follow the given below steps:
- Choose an appropriate name for your business. Determine the kind of business you want to make such as partnership, sole proprietorship, corporation or LLC and them establish it.
- Get license to do the business and general liability insurance as well. Besides, you must get worker’s compensation insurance to cover employees.
- Collect a list of big and small lenders in your area. Particularly gather information of large banks that would like to work with best appraisal management companies rather than individual appraisers just because of the professionalism.
- Print your fliers, brochures and business cards and make unsolicited contact with lenders to bring your service in the selected area.
While following these steps, you have also to remember certain things. You need to earn as much experience as you can by appraising properties and make sure that your employees are well experienced and qualified for the job.
Your appraisal management company must get accreditation from a reputable association such as ASA (American Society of Appraisers). Recently, appraisers got a bad recognition for inflated appraisal that helped fuel the housing bubble.
Therefore, you need to ensure that your employees are not liberal in doing appraisals and you are getting more business. Having own appraisal Management Company would be financially rewarding.
It will allow you work from home, make your own hours and decide the quantity of work you want to do. One great with own appraisal management company is that you can develop your business at your own space.