As a real property appraiser, developing a specialty — or niche — is a great way to stand out in your local market and move beyond lender-only appraisals. Choosing your niche, however, can be a little challenging. With so many areas to choose from, where do you even start?
The good news? You can take your time growing into a specialty (and one that pays well) over the course of your career. Whether you’re currently handling mortgage appraisals and ready to branch out — or you’re in the throes of refining your profitable niche — here’s a rundown of the top niches in real property appraisal plus tips on how to find success with yours.
Top Niches in Real Property Appraisal
We asked an expert appraiser to tell us about the top appraisal niches on the rise today. Here’s what we learned.
Keep in mind that some of these specialties may require a specific type of appraiser license, depending on your state rules. Learn more about the different appraiser licenses.
Agricultural Appraisal
Agricultural appraisal involves appraising farms, farmland, ranches, vineyards, and other types of rural property. Farm appraisers often have subspecialties in farm equipment appraisal, soil analysis, crop production forecasting, and more.
Appraisal Review
Appraisal reviews are formal evaluations of appraisal assignments performed by other appraisers. Reviews might be requested during Reconsiderations of Value (ROV) or as part of quality control.
Commercial Property Appraisal
Commercial property appraisers specialize in appraising commercial and industrial properties. This could mean valuing an auto repair shop to a school, hospital, or a large commercial airport. Most commercial appraisers hold the highest appraiser license and title of Certified General Appraiser.
Complex Property Appraisal
Complex property appraisals involve residential property where the property, its ownership, or the market landscape is atypical. A complex property appraiser is skilled in using multiple appraisal methods to determine value.
Green Property Appraisal
Green property appraisers appraise energy efficient, eco-friendly homes. These appraisers have specialized knowledge of green building practices, sustainability features, and valuing green property.
Historic Property Appraisal
Historic property appraisers appraise older historic or antique properties. This specialty involves sourcing and examining historical property records, paying special attention to renovations, additions, tax records, and land records.
Insurance Appraisal
Property insurance appraisers give objective opinions on the estimated replacement cost of a home during a homeowners insurance claim. Insurance appraisers might work for insurance companies or as independent appraisers serving the insurance industry.
Litigation Appraisal
In litigation appraisal, appraisers help resolve financial and property valuation conflicts by providing independent property appraisals. Litigation appraisal includes multiple sub-specialties.
Appraisal Expert Witness – Appraisal expert witnesses serve as neutral subject matter experts during litigation and court proceedings.
Bankruptcy Appraisal – Bankruptcy appraisers appraise property to determine an estimated opinion of value prior to bankruptcy proceedings.
Divorce Appraisal – Divorce appraisers specialize in appraising properties that are assets in a divorce situation.
Eminent Domain Appraisal – In an eminent domain or condemnation appraisal, an appraiser determines an estimated opinion of value for the governmental acquisition of a property.
Estate Appraisal – Estate property appraisers provide property valuation services during estate planning, trust preparation, estate tax assessment, and probate proceedings.
Luxury Property Appraisal
Luxury property appraisers appraise high-end homes. They have special knowledge of unique building materials, amenities, and property locations.
Marijuana Property Appraisal
Marijuana grow properties and cannabis dispensary appraisal are both on the rise as state regulatory laws continue to be relaxed. Marijuana property appraisers have specialized knowledge of how the legal landscape, zoning requirements, land valuation, and market conditions can affect the value of marijuana properties.
Mass Appraisal
Mass appraisal is a method of appraisal used for tax assessments of entire neighborhoods. Appraisers performing mass appraisal are generally employed by the local government tax assessor.
Multi-Family Property Appraisal
Multi-family property appraisers specialize in valuing multi-family properties such as apartment buildings, condo developments, and multi-unit townhomes. They're skilled in analyzing income and investment potential when developing an estimated opinion of value.
Property Development Appraisal
Property development appraisers help determine the cost, viability, and revenue potential of property development projects. They work closely with investors and developers on new developments and re-development ventures.
Relocation Appraisal
Relocation appraisers specialize in appraising property during corporate relocations. This type of appraisal gives the employee a clearer picture of their home’s estimated worth and the market conditions that may guide how long it would take to sell the home. Relocation appraisals also help companies better plan their compensation packages for employees during a relocation.
Why Specialize in an Appraisal Niche?
Develop your appraisal niche and you (and your community) will reap the benefits.
How a Niche Helps You
Enjoy Less Competition
Many appraisers start their careers specializing in residential mortgage appraisals only. This type of work can be easier to get, especially if you’re on approved Appraisal Management Company (AMC) rosters. But it also means a more saturated market. Specialize in one (or a few) types of property appraisal and you’ll enjoy less competition for your services.
Enjoy Lucrative Pay
Non-lender appraisal assignments, on average, tend to net higher fees than standard lender-only appraisals for mortgages. This means you can charge more premium fees, depending on the going rate of appraisal work in your niche.
Enjoy Your Work More
Even the most optimistic appraisers can feel like they’re in a rut sometimes. When you specialize in a niche you genuinely love, you’ll enjoy your appraisal assignments more. Not to mention, it can feel exhausting bouncing between several types of appraisal work. Some appraisers love the variety while some might fight burnout.
Enjoy Higher Visibility
Just as you’ll have less competition with a specialty, you’ll likely have more visibility as a specialist in your market. A potential client, for example, could have a list of 15 appraisers to choose from for a standard residential mortgage appraisal. But if it’s a historic property? They’ll likely want a specialist, and you might be the only one in the area.
How Your Niche Helps Your Market
You Fill a Need
If there’s a need in your local market for your appraisal niche, you can easily step into those shoes. Maybe you’ll become the go-to appraiser for estate appraisals or other litigation appraisal work. Or maybe you’ll find your stride working with your local government tax assessor. Stay informed about the needs of your local market and consider aligning your specialty to meet them.
You’re the Local Expert
Clients looking to hire an appraiser for a specific assignment want an expert and they likely won’t settle for a jack of all trades. Position yourself as the local expert in your niche and make yourself the in-demand consultant.
You Provide Excellent Service
Your excellent service is a great starting point when developing your niche. Niche assignments often command more of your time and attention (hence the higher fees). You can truly shine in your local market with top-notch client service that keeps clients referring business to you time and again.
How to Develop Your Niche
Developing your appraisal niche is an exercise in creative marketing. Use these tips to discover yours and market your niche like a pro.
Consider the Assignments You Like to Work On
What assignments spark your passion in appraisal? You may not love every appraisal assignment you work on. Begin by focusing on the ones you enjoy more than others. Eventually, you’ll carve out your ideal niche.
Work With the Clients You Want to Serve
Along the same lines, think about the types of clients you want to serve (and maybe those you don’t). Love helping investors understand the true value of their investments? Consider multi-family or property development appraisal. Have a knack for green properties? Hone your skills in eco-friendly home appraisal and help value sustainable properties how they should be.
Lean Into Continuing Education
Completing your required Continuing Education (CE) hours checks off more than just your state requirements. Choose CE electives that teach you about new niches and help you develop a specialty — even if they go beyond your required hours. This also helps keep you competitive in your market. You’ll have a breadth of knowledge to share and consult on beyond the standard residential appraiser.
Brand Yourself in Your Niche
Once you’ve decided to focus on a niche, work it into your branding and your professional identity. Use these tips for marketing yourself as an appraiser to build a successful niche business.
Network to Generate Referrals
When you’re focusing on a niche, be sure to network with appraiser colleagues, local real estate professionals, and others in your sphere. Tell them about your specialty and how you can help mutual clients. You may get referred work from other appraisers who don’t share your skills. Your contacts can also help spread the word about your services and pique the interest of ideal clients. Learn more about referral marketing tips.
Find Your Niche in Appraisal With The CE Shop
Thinking about starting a career in appraisal? Our Qualifying Education courses prepare you to gain experience in the field and earn your state appraiser license. Been working in the business for a while? Our USPAP Update courses (Uniform Standards of Professional Appraisal Practice) and CE courses keep you current, compliant, and competitive in this ever-changing field.
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