I have been researching automotive related businesses for quite a while. Nothing really caught my eye. Until now, I recently came across auto appraiserals. I can't really find anything on how to become an appraiser. Other than buying into an appraisal franchise. How do I become an independent appraiser? Do I need a license in Michigan? I want to specialize in collector and modified cars and motorcycles. Any information is appreciated. More questions to come I'm sure.
thunderzy wrote: I have been researching automotive related businesses for quite a while. Nothing really caught my eye. Until now, I recently came across auto appraiserals. I can't really find anything on how to become an appraiser. Other than buying into an appraisal franchise. How do I become an independent appraiser? Do I need a license in Michigan? I want to specialize in collector and modified cars and motorcycles. Any information is appreciated. More questions to come I'm sure.
This is interesting. Id like to know what you find out.
Joey
Anyone around here that goes into appraising. "This 1920 Duesneberg is worth 20$. I will give you 19 dollars for it... Come on, you can't even autocross it. It would get killed on PAX..."
You can look into a franchise. You'd have to see if the largest of the appraisal companies such as PDA or Crawford have a need for a franchise. Chances are they already have one. You could go into business for yourself. You'd then want to market yourself to the insurance companies, because that's where the bulk of your work would come from. Insurance companies look for independents with a strong appraisal background, quick turn around time and obviously low cost. They'll want you to have certain levels of insurance and sign contracts.
The specialty car market is small. Very small. You could market yourself to the specialty car carriers, but they probably already have several they have good relationships with and you might find it tough sledding to make inroads.
Klayfish wrote: The specialty car market is small. Very small. You could market yourself to the specialty car carriers, but they probably already have several they have good relationships with and you might find it tough sledding to make inroads.
That's perfectly fine with me. This will be a side business at first. Really just want to get my foot in the door and go from there. I'm currently self employed, working around 55 hrs a week. Most of my mornings are free and several afternoons a week are also free. I would be happy to start small and develop good working relationships. My questions are to getting certified or licensed in the state of michigan. There are several organizations out there that offer certification.
http://www.bocaa.org/index.html
http://www.certifiedautoappraisers.com/index.html
I know nothing about these organizations or how effective their training and certifications are. Is one better than the other? Does the state of Michigan require a particular certification or license to legally do business?
Again, I'm sure there will be more questions.
You'd have to check with the state on licensing. There aren't a lot of states that require a license to appraise cars. I actually live in one that does, Pennsylvania. I went to training school through the insurance company I worked for. Off the top of my head, I don't think MI requires a license. If they don't, then those organizations may not be worth your while, depending on your current skill level. It wouldn't hurt to have them on your resume, but if you don't need a license, you don't HAVE to go to one of those. I'm sure the state would require you to register your business with the Department of Insurance or something like that. You'd want to check with them.
What I'm missing in the discussion is how you develop the expertise to convince clients your appraisals are authoritative. Anyone can watch the market and say: "Well, another one brought $XXX last year." Shouldn't a specialized appraiser have extensive, personal experience in the market? I imagine an authoritative appraiser as specializing in one or two marques. I'm just asking.
chuckles wrote: What I'm missing in the discussion is how you develop the expertise to convince clients your appraisals are authoritative. Anyone can watch the market and say: "Well, another one brought $XXX last year." Shouldn't a specialized appraiser have extensive, personal experience in the market? I imagine an authoritative appraiser as specializing in one or two marques. I'm just asking.
Experience. That's pretty much it. Most classic car appraisers aren't specialists in a single marque. They just have years of experience in the industry. Repairing them (mechanically and/or body), buying/selling, being active in the AACA, etc... Or some learn as an apprentice of an existing classic car appraiser.
I've seen two classic car appraisals done by one of these 'specialist' companies. Neither produced an appraisal rooted in reality. They provided figures instead that made the owner feel good. I think the members of this board have more experience with collector car values than these so-called 'experts'. One was done on a particular model of car which I am, if I may brag, an authority on. The value was placed at least $4-6 thousand higher than I had ever seen one like it sell for. Since most of these are done for insurance purposes, actual 'market' value doesn't seem to matter to these guys.
ddavidv wrote: I've seen two classic car appraisals done by one of these 'specialist' companies. Neither produced an appraisal rooted in reality. They provided figures instead that made the owner feel good. I think the members of this board have more experience with collector car values than these so-called 'experts'. One was done on a particular model of car which I am, if I may brag, an authority on. The value was placed at least $4-6 thousand higher than I had ever seen one like it sell for. Since most of these are done for insurance purposes, actual 'market' value doesn't seem to matter to these guys.
Yep, I've seen these guys come across my desk too. They're usually different than an actual physical damage appraiser who specializes in writing old car damages. The ones you talk about are the guys who charge the poor car owner $300 for a 3 page write up that strokes their ego but has little basis in reality. They're similar to the guys who do write ups on diminished value.
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