When someone purchases a property, whether it's a residential or commercial property, the lender typically requires an assessment of the property's value by an appraiser to facilitate the sale. Appraisers often work for appraisal management companies. People who start appraisal management companies (AMCs) do so for a variety of reasons. Often, it's because they have experience appraising the value of houses or commercial properties and want to be their own boss.
Select your business name. Decide which type of business you want to form (sole proprietorship, partnership, LLC or corporation), and then set it up.
Obtain your business license and general liability insurance. Also get workers' compensation insurance to cover employees.
Compile a list of large and small lenders in your region. Large banks, in particular, like to work with appraisal management companies rather than independent appraisers because of the veneer of professionalism.
Print up brochures, fliers and business cards, and cold-call lenders to introduce your service.
Gain experience appraising properties, and make sure your employees are experienced, as well. Get accredited by a reputable association, such as the American Society of Appraisers (ASA).
Appraisers have gotten a bad reputation recently for inflated appraisals that some say helped fuel the housing bubble. Ensure you and your staff aren't too liberal in your appraisals, and you'll get more business.
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