Getting the word out as to what an appraiser is and, perhaps more importantly, what they do and how they do it when it comes to their business, is a critical component for success. The appraiser’s ability to market themselves has become the way to be better and more efficient.

In Valuation Review’s annual “Voice of the Appraiser” survey, it seems year after year the sentiment among appraisers as to how they promote their businesses is the same: word of mouth.

Utilizing social media platforms to advertise skills and services is coming around, as far as marketing, but not at the rate one would assume with the internet well within reach of businesspeople.

One of our survey respondents noted: “I sit on the board of my Realtors association as an appraiser member, and I get a lot of referral work through that. I also get a lot of referral work from attorneys because we do a lot of work in that realm. I also teach continuing education classes to agents and brokers.”

Another mentioned that by walking into four large banks in his area and talking to their chief appraiser, he got on their vendor list.

One of the industry veterans responding to our annual survey last year said that in 21 years, he has never had to advertise or solicit. That approach isn’t shared by many in the appraisal profession today, and with the many advancements made in technology including artificial intelligence and ChatGPT, such an attitude will more than likely result in one simply sitting by a phone waiting for it to ring.

“Marketing does not start when or after the market shifts. It is a constant process that must always be happening,” Woody Fincham, of Fincham & Associates, said. “Many appraisers are now hurting because they were too busy riding a boom wave and failed to market. During the COVID market, appraisers were swamped. They spent no time making themselves better or marketing their business. Go get a designation and take some continuing education that challenges you.

“We have had tremendous success volunteering with our local real estate association. I am the only full-time appraiser to ever sit on the board as a director, which gets my firm a lot of exposure, and it is free,” Fincham added. “I enjoy discussing what I do and will gladly sit down with an agent or stand in a room full of agents to discuss the finer points of valuation.”

That is one way he differentiates his firm from others, he explained.

“In reality, many appraisers are either introverts who hate talking to a room full of people or are not versed well enough in their profession to competently talk about what they do for a living,” Fincham said.

Tony Pistilli, general manager of valuations at Restb.ai, shared a basic philosophy of his regarding general service and attracting business.

“Service is a huge differentiator among appraisers,” he said. “Getting the assignment done ‘on-time, done right, the first time’ will win clients every time.”

As to how much appraisers depend on good word of mouth from lenders and other partners in the industry, Fincham said he thinks such an approach is a very “old-school” way of thinking about what appraisers do. The separation of loan originators and appraisers after Dodd-Frank, he said, makes it difficult for referrals to come from lenders anymore.

Appraisers still get some referrals from loan officers, he said, but that mainly comes from their marketing to agents through the local real estate association where they see Fincham and his staff teaching and volunteering for the association.

Marketing is essentially “critical” to grow an appraiser’s business and to differentiate it from the competition, he added.

“Be the solutions professional in your market. Take on those difficult assignments,” Fincham said. “I have become an instructor, I volunteer to serve on appraisal organization committees and teams, I volunteer with my local real estate association, I run towards challenging assignments, not away from them, and I like testifying in court.

“Do a SWOT (strengths, weaknesses, opportunities and threats) analysis on you and your firm,” he added. “If you do it objectively, you can identify opportunities. Be unique by making yourself stand out as the go-to expert in the market.”

With regards to market adjustment, veteran appraiser Dustin Harris (“The Appraiser Coach”) reminds us that in a constantly evolving market, appraisers must stay ahead by adapting swiftly, using market data and trends to refine valuations.

“This agility is what sets us apart,” Harris said. “Real estate appraisers lean heavily on the professional network we build — lenders, agents, and clients themselves. A strong online presence coupled with solid relationships is our lifeline. Don’t just sit back and wait for the fax machine to ring.

“The cornerstone of an appraisal business is the trust and reliability perceived by lenders and partners. Good word of mouth isn’t just beneficial; it’s vital,” Harris added.

Harris also pointed out the market value approach is “fundamental,” relying on comparative analysis to provide accurate, market-sensitive valuations.

“It’s the bread and butter of our work,” he said. “Marketing isn’t just about growth; it’s about survival. In a crowded market, visibility can mean the difference between thriving and merely surviving. To stand out, you must highlight what makes your service unique — be it your methodology, specialization, or even your customer service. I often say, be known; be known as the expert. Differentiation is key.”

Branding is another key aspect of an appraiser’s ability to successfully market their business, and Harris is no stranger to quality branding.

“Finding the right branding means knowing your strengths and your audience. It’s about crafting an identity that resonates and remains memorable,” he said. “Making your services unique is about innovating in ways that matter to your clients—whether through technology, specialized knowledge, or unparalleled accuracy.”

McKissock Learning shared that successful appraisers are consistently monitoring their markets to determine if it is increasing, stable or declining, as well as determining if market condition adjustments (also known as date of sale adjustments) are necessary for comparable sales in the sales comparison approach.

They can accomplish this analysis through a variety of ways. Comparing a property which sells and then re-sells (without significant changes made to the property) can assist in deriving a market condition adjustment. Appraisers can also analyze the mean or median sale price of a group of properties over time to determine if the market is changing. Finally, there are many software tools available to appraisers to assist in this analysis.

“Residential appraisers most often work for lenders through AMCs,” McKissock’s Julie Molendorp Floyd said. “An appraiser can sign up for different AMC panels and complete the requirements to be considered for assignments. Commercial appraisers do not typically work through AMCs; they are engaged directly by lenders for assignments. These types of appraisals make up the majority of lending appraisals, but fee appraisers (those who work independently and are not direct employees of an institution) can also get work through referrals. Referrals can come from anyone but are frequently centered around realtors or attorneys for private, non-lending work.

“In the lending industry, the majority of the ‘word of mouth’ referrals have gone by the wayside, being replaced by management companies,” Molendorp Floyd added. “Word of mouth is more of a factor in the commercial sector, as the commercial firms can be greatly specified based on property type. There are large firms, for example, who focus on nothing but hotels, while there are others who appraise only golf courses or specialty retail properties like big box stores or convenience stores.”

Valligent Chief Operating Officer George Paquette noted that in 2018, the introduction of the 1004MC requirement prompted a significant shift, leading many appraisers to embrace form-filling software to simplify the form and quickly communicate the current market value trends. While this form helped the appraisal data be in a consistent format, he suggested, some challenges persisted.

“Over time, as form-filling software solutions evolved, savvy appraisers began to use these tools to expedite the appraisal writing process for market conditions, data entry, and more,” Paquette said. “However, acquiring supporting data can be challenging in today’s slow market climate. Appraisers often find themselves forming opinions based on limited data and must supplement it with additional data sources and feedback. So, local expertise is critical to know all the changes happening within a housing market.

“The approaches to acquiring clients vary significantly among appraisers. Some appraisers, particularly those proficient in technology, focus on optimizing their websites to attract online visitors. Others prefer direct networking, reaching out to local banks, attorneys, and mortgage companies,” he added. “Many appraisers rely on assignments from AMCs, utilizing downtimes to apply to new AMCs in hopes of expanding their rosters. However, the effectiveness of this strategy often depends on local demand. New opportunities may be limited and slow to materialize in areas saturated with appraisers if the AMC has long-standing trusted partners in that market.”

The Valligent executive also shared that while appraisers specializing in certain property types may rely more heavily on word of mouth, it generally is not a primary factor for most. However, as an AMC, Valligent occasionally receives inquiries from smaller banks that assign appraisals directly, especially in challenging markets.

“In these instances, we are always ready to recommend appraisers with whom we have established relationships,” Paquette said.

Cushman & Wakefield’s (C&W) Executive Managing Director Zach Bowyer gave his insights as to appraisers adjusting their marketing strategy.

“Having worked as a commercial real estate appraiser for over 20 years, I have had an opportunity to experience multiple cycles. I started my career shortly after the tech bubble in 2001, worked though the great financial crisis, and now this current cycle,” Bowyer said. “While each cycle has been different, this most recent downturn is unique in a way that the various dynamics of commercial real estate (property markets and capital markets) have both been uniquely impacted and the volatility has been much more prolonged. Adjusting to the market is much more challenging than past cycles. In multifamily, the sector I support, transaction volume is down 61 percent year-over-year, so keeping our teams busy has been challenging.

“To stay busy, we are focused on controlling what we can control and are hyper focused on investing in our platform,” he added. “Our controllables are client service, collaboration, talent development, leveraging our platform and making sure we are viewed as the market leading experts. We have also leaned into institutional fund valuations, agency (Fannie Mae and Freddie Mac) and other advisory services. I’m extremely proud to report that our revenue is up significantly year-over-year, and we are hiring.”

The formula for getting clients, Bowyer said, is simple – do good work and more work comes.

C&W has a guiding principle that it doesn’t gain new clients by compromising existing clients. So first and foremost, it always strives to put existing clients first. Growing with a client is much easier than having to replace them, he said.

How much can appraisers depend on good word of mouth from lenders and other partners in the industry?

“Our multifamily team is on track to complete over 9,000 valuation assignments this year. While we aim to be perfect on every assignment, listening to our clients, being responsive, and working to ensure our valuations reflect the most current market sentiment is where we are focused,” Bowyer said. “We also try to be proactive with our clients in terms of understanding their needs, concerns, and pain points so that we can provide our services in a way that helps them be most informed while managing risks. For me, I’m a believer in doing things the right way and good things come. And yes, word of mouth is big in our industry.

“The appraisal business has become extremely competitive and in some cases much more commoditized. We see other firms flying around the country and in some cases hiring third parties to assist with property inspections,” he added.

“For Cushman & Wakefield, we are focused on the property specific expertise coupled with best-in-class local market knowledge. Also, we aim to employ top industry talent, people who believe in the appraisal profession and are passionate about the services we provide, which is the key to our ability to maintain the value of the services we provide.”

Marketing is critical to grow an appraiser’s business, Bowyer said. From placing ads to being visible at key industry conferences and events, appraisers need to be where their clients are if they want to properly understand their needs and make sure their services reflect current market conditions and sentiment.

“We not only attend various conference, but we hold leadership positions within our local Appraisal Institute chapters and other organizations such as NCREIF, ULI, MBA and others,” he said. “Our differentiation is by far our people. From the junior analysts to the CEO, we have an inclusive culture that strives collectively for service excellence. We have internal training programs that promote talent development. We want to empower our people to achieve their professional ambitions while maintaining a work-life balance.

“From a business execution standpoint, we have sector specific expertise and teams, but are also large enough to ensure local market dynamics are understood and incorporated into our valuations,” Bowyer added. “Lastly, we have access to our investment sales, debt, market leading research and property management platform data with over 180,000 multifamily properties under management, not only allowing for deepest and most current data, but also a data set not available to any other platform.”

Bowyer also spoke to finding the right branding for one’s business.

“One thing that our leadership is focused on from a branding standpoint is thought leadership. We work to publish key market insights and data that enables our clients to make the most informed decisions, while mitigating their risk exposure,” he said. “Some examples include our investor surveys and indexing reports that provide insights to market trends and challenges facing the market.”

Paquette expanded upon his thoughts as to how critical marketing can be for appraisers.

“Marketing holds immense significance, especially during slow economic times when it can be the differentiator between financial stability and hardship. Appraisers who take a passive approach to acquiring business often face ongoing challenges, especially with no immediate indication for rate improvement,” he said. “It is essential for appraisers to diversify their services, exploring alternative products, non-lending assignments, and consulting opportunities to offset reduced demand. With years, sometimes decades, of experience and deep familiarity with their local markets, appraisers possess valuable expertise that can serve residents undergoing various life transitions. While appraisers may not inherently possess sales skills like real estate agents or brokers, navigating through tough markets often requires stepping out of their comfort zones — a bold move that can yield significant rewards in the long run.

“Crafting effective branding for your business involves a nuanced understanding of your target market and the type of clients you aim to attract. Appraisers often opt to brand themselves based on specialized services, whether it is as review experts, desktop appraisers, or specialists in niche areas like divorce, estate settlements, or court testimonies,” Paquette added. “It is common for appraisers to manage multiple brands, each tailored to cater to a distinct segment of their market. The essence lies in devising a branding strategy that effectively communicates the unique strengths and specialties of the appraiser to prospective clients, ultimately setting them apart in a competitive landscape.”

Above all, Paquette pointed out, providing exceptional service and honoring commitments are paramount to enabling clients, of any kind, to thrive. Additionally, he is a strong advocate for specializing in property types that are less popular among other appraisers or serving geographic areas that are generally avoided.

“Merely offering the same services in the exact locations as everyone else is unlikely to yield success,” he said. “Differentiating your offerings is key to standing out and attracting more business.”

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