Realtor or a appraiser ? Which is better and funner to get into

[Salim Bessaoud]

I'm looking to get my feet in the real estate branch. Which one is better and funner? Becoming a real estate agent or a appraiser ?? Thank you

[Brad S.]

My 2 cents as a Certified General Appraiser (mostly residential work) for 24+ years and licensed Agent/Broker for 21 years...oh, and a Mortgage Broker for some of those years...and flipper/rehabber, and longterm OOS landlord

Appraisal will get you the skills to understand the real estate market "under the hood," and keep an eye on current trends, typically, more widely than an Agent/Broker. You will better understand how real estate is valued, what the banks are looking for (financing trends), and you'll constantly see what the market values (meaning, what buyers want and are paying more for). In other words, are 3 bedroom houses selling for the same as 4 bedrooms, or if you are doing a rehab, do you really need to add that extra 200sf of gla, or do you install solid surface counters (Silestone, Quartz, etc), or can you get the same reaction with granite counters, etc. I also will have a good idea if one of my deals may have appraisal issues when I sell. I can anticipate that and approach it accordingly.

You will most likely, also develop a wider area of knowledge, since you may work in a wider area, than if you were a Realtor. So, I see local trends, where people are buying, where they are moving from, what they are buying, what rehabs they are currently doing (which materials and colors, etc, they are using these days). I also see the data telling me which size or bedroom count or amenities buyers seem to be paying extra for, etc. I also learned to analyze that data to see market trends. As an Appraiser, I get paid to analyze the data and do research which has helped me in my own investing. I also got exposed to a lot more people, including flippers/rehabbers, builders, investors, businessman, celebrities, Agents/Brokers, etc. You have a great chance of making many connections.

Now, the negatives are: it takes a lot longer, more money (and making less money to start) and energy to go the Appraiser route (more education, training, etc). Or you can do what I did and get a job with the local Assessor and get fulltime paid training. I probably got the best training available and got paid to learn and gain experience. I was fortunate, for my license, I did not have to do any training hours under anyone or accept a lower fee for my independent work. And I got to see parts of my county I never knew existed and got to know the market, while I got paid to learn. I know where the gla comes from on public records (I may have been the one who put it on there), I also understand, that just because it's on record, doesn't mean it is legal sf or vice-versa. This helps when I buy a rehab, to check the legal gla and not just go by public records. In other words, I can better analyze a potential deal.

Also, the industry has changed and continues to change, making it more difficult to work, more responsibilities, liabilities, and additional work to do on an individual assignments. Pay has generally gotten better over the past few years, but the work required per assignment, has increased as well. This is all mainly for residential, commercial is a whole 'nother animal. And like other parts of real estate, the work cycles, up and down, but there are more opportunities to get work in down markets, then being an Agent.

Now, as an Agent/Broker, I understand how the transaction works, what's involved, the steps, etc. I don't need to do as many transactions to make the same money, or more (as an Appraiser). 1 deal can be equal to 3+ months of appraisal work. But, it may also fall through, at the last minute. But, typically, the work required for me to do a real estate transaction, is less (or feels that way anyway), than an appraisal. It was easy and quick to get my RE license (after my Appraiser License). You can make a lot of connections with other Agents/Brokers, which may help find deals. You learn some tips and tricks to sell and market a house (which also can help in your own investing). 

Basically, they are both very different animals. 

Well, that's all for my "brain-dump," at the moment. Hope this helps any of you.