Appraisal business plans can help you get funding to work full-time as a residential home appraiser or as a land assessment or commercial office space appraisal expert. The important points of emphasis for a business plan like this are your experience in (and certifications for) the appraisal business, the strength of the market you're entering into (including the existence of major competitors), and the potential profits you can derive from appraisal work in your target market. You'll want to describe the service suite in depth and list out the different fees and "deliverables" that a client gets from you as an appraiser. You also need to build out a plan that answers the following important questions that your investor or banker are sure to ask:
• How have interest rates moved recently?
• How do major financial indicators impact refinance and first time mortgage applications in the current market?
• Will you get referrals from lenders or do your own client acquisition?
• How do you plan to market your business?
• What geographic area will you cover for your appraisals?
The appraisals business plans also need to provide a pro forma financial model that uses market-based assumptions (the fee you can charge, how many properties you'll appraise per month, etc) to drive at Year 3 or Year 5 profit figures. Check these estimates against the figures that your competitors have achieved, where available, and be sure that you have accounted for all of the major costs that you will face doing appraisals as a business over the long-term. Need assistance figuring out good assumptions, figuring out your competitors' sales metrics, or writing up your service suite accurately? The business planning experts at MasterPlans can lend a hand. Our team of expert writers and modelers has been working on real estate plans dating back to 2002. Call us today for a price quote on your project: 877-453-2011.
