Casualty Loss appraising is cyclical, not a steady stream of business like loan production work is. Yet, it is a book of business that can be developed and can help even out cash flows when lender work slows down as it is doing now.
Earth, wind, flooding and fire issues can create opportunities. Below are some links that are referential. Developing contacts that would be the source of business from these types of valuation needs, includes understanding the two main areas or sources of work in this area.
While my office is a general practice, doing all types of appraisals for all types of clients, there are some who specialize in doing appraisals on properties that have been damaged in one way or another. One of the first firms I knew of was Real Estate Damages, www.realestatedamages.com Check out their web site to see the range of things they are involved in. Their work might involve an individual property or an entire town that has been impacted by a sudden even, or negative event.
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This map shows locations that experienced wildfires greater than 250 acres, from 1980 to 2003. Map not to scale. Sources: Bureau of Land Management, U.S. Forest Service, U.S. Fish and Wildlife Service, Bureau of Indian Affairs, National Park Service, and the USGS National Atlas This map shows locations that experienced wildfires greater than 250 acres, from 1980 to 2003. Map not to scale. Sources: Bureau of Land Management, U.S. Forest Service, U.S. Fish and Wildlife Service, Bureau of Indian Affairs, National Park Service, and the USGS National Atlas This map shows locations that experienced wildfires greater than 250 acres, from 1980 to 2003. Map not to scale. Sources: Bureau of Land Management, U.S. Forest Service, U.S. Fish and Wildlife Service, Bureau of Indian Affairs, National Park Service, and the USGS National Atlas This map shows locations that experienced wildfires greater than 250 acres, from 1980 to 2003. Map not to scale. Sources: Bureau of Land Management, U.S. Forest Service, U.S. Fish and Wildlife Service, Bureau of Indian Affairs, National Park Service, and the USGS National Atlas http://www.usgs.gov/hazards/ 
Flood information.
Sudden events that cause loss in property value, create the need for appraisals for IRS claims of Casualty Loss. These require a before and after valuation. The fees are in the thousands of dollars, not hundreds. Sources of business include tax accountants and enrolled agents, real estate attorneys and insurance companies.
There is not typically any value pressure or delivery time pressure, a clean book of business in my opinion.
Think of events that may have occurred in your Region and how you might go about developing some of this business.
I have found that community involvement contacts through the Chamber of Commerce, Jaycees, Rotary, and contacts in the Appraisal Institute have been our main source of referrals for this type of work. I have had good success meeting new clients while doing volunteer work in civic groups and appraisal groups.
Every time we have a major fire, flood, wind storm or earthquake; there are subsequent orders for Casualty Loss appraisals. Some times there follows another appraisal from flood damage after a fire. Earthquakes happen less often but also create opportunities for business. Damage from wind storms or Blo Sand storms is seasonal too. Damage from a meth lab that blew up is becoming less frequent, but is a casualty loss also. Capturing some of this business is a matter of marketing or public relations.
One of the best ways I have found to get known to potential clients is to give talks to their professional associations or civic groups that contain high numbers of potential clients. Two years of giving breakfast, lunch and dinner talks; will create more business than one can handle. I seem to stay too busy to do any marketing, but if you rely on lender work for your lively-hood, you could be faced with a huge slowdown in volume in the next year or two.
Think about spending efforts in the area of developing new lines of business outside of loan production. It might require higher level course work than needed to get a license. It might require a higher level skill-set than what you can get by with doing lender work. But it is not all that hard to lift oneself up from the bottom of the appraisal pile to a higher level of performance, especially with all that is available in terms of courses, guidance and leadership within the organized appraisal industry. Credentials become more important as you move up the food chain of appraisal work. www.appraisalinstitue,org
As the market has started on a five year cycle of slow down, now is the time to re-evaluate education and credentialing requirements. It is interesting that there is always a spike of professional designations 1-2 years after the bottom of a recession has been reached. At least that is what happened in the mid 1980's and 1990's. Get ahead of the curve and get credential-ed now. It is not all that hard, and there is help along the way.
Don't allow yourself to become a casualty loss of this new recession. Survive it by broadening your education, credentials and skills sets. Armed with superior credentials and skills, it is easier to build a broader book of business than doing lender work fast and cheap.
There are specialized courses and seminars on specific topics from detrimental conditions, to advances sales comparison and cost approach through the Appraisal Institute, American Society of Appraisers, National Association of Independent Fee Appeasers, and others. Try checking the AI site and look at the range of courses on specialized topics.
AUTHOR: Steven R. Smith, MSREA, MAI, SRA, Smith Realty Advisors, 936 San Jacinto St., Redlands, CA 92373, Real Estate Appraisals, Consulting, Expert Testimony, Forensic Reviews, Fraud Research and Analysis, Litigation Support, Fraud Training 909-798-8855, fax: 909-798-0139
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