High price: Renewed real estate activity will spur demand for appraisal services

Over the five years to 2018, the volume of appraisals performed by the Real Estate Appraisal industry has shifted unevenly amid improving construction markets, contracting and adjusting to demand in a postrecessionary environment. With easy access to and low cost of credit at the beginning of the five-year period, new residential construction increased and real estate appraisal professionals received an uptick in demand. Despite revenue turning the corner, however, operators continued downsizing and exiting the industry. Over the five years to 2023, IBISWorld projects that industry performance will be supported by a recovery in downstream real estate markets and increases in development and investment activities...purchase to read more.

Industry Statistics & Market Size
Annual Growth 13-18
Forecast Growth 18-23
Market Share of Companies

Industry Threats & Opportunities

  • The industry will be supported by recovering downstream markets despite restrictive federal legislation
  • The industry has benefited from the continued recovery of the US housing market
  • Industry operators are expected to undertake greater qualitative analysis to reduce risk
  • Industry Report - Starting a New Business Chapter

    Barriers to entry for new firms in the Real Estate Appraisal industry can vary significantly between states and cities. Generally, these barriers to entry are considered to be low across the United States. Costs to purchase or lease facilities can be considerable in well established, highly populated cities. However, in smaller cities and suburban regions, costs to establish a real estate services firm can fall significantly. Smaller, nonemployer firms, which incur minimal start-up costs and have very low operational costs, dominate the overall industry.The most relevant regulatory requirement is the educational requirement and the process to become a licensed or certified appraiser. The...purchase to read more.

    Additional Insights for the Real Estate Appraisal Industry

    IBISWorld identifies 250 Key Success Factors for a business.The most important for the Real Estate Appraisal Industry are

  • Access to highly skilled workforce
  • Upstream vertical integration (ownership links)
  • Maintaining a good reputation
  • IBISWorld analysts also discuss how external factors such as Existing home sales and Value of private nonresidential construction in the Real Estate Appraisal industry impact industry performance..

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    What's in this report

    What is the Real Estate Appraisal Industry?

    Operators in this industry specialize in estimating the fair market value of real estate. Appraisers research a property or development to determine the characteristics pertinent to its market value. Valuations for a property are carried out when it is sold, mortgaged, taxed, insured or developed.

    Industry Products
  • Real estate appraisal - commercial
  • Real estate appraisal - residential
  • Consulting and other services
  • Appraisal management
  • Industry Activities
  • Conducting residential real estate valuations
  • Conducting nonresidential property valuations
  • Conducting other property-related research and analysis
  • Table of Contents

    Industry Definition
    Main Activities
    Similar Industries
    Additional Resources
    Industry Statistics Snapshot
    Industry Structure
    Executive Summary
    Executive Summary
    Key External Drivers
  • Existing home sales
  • Value of private nonresidential construction
  • House price index
  • Yield on 10-year Treasury note
  • Housing starts

  • Current Performance
  • Nonresidential market builds up
  • Residential growth burst
  • Regulatory changes
  • Chart: Revenue Growth

  • Industry Outlook
  • Construction market and risk
  • Tightened regulation
  • Profit margins increase
  • Table: Real Estate Appraisal Industry Revenue Outlook

  • Industry Life Cycle
  • Life cycle reasons
  • Chart: Benchmarking - Real Estate Appraisal Industry Lifecycle vs The Economy

  • Supply Chains
    Key Buying Industries
  • Finance and Insurance
  • Commercial Leasing
  • Property Management
  • Law Firms
  • Consumers

  • Key Selling Industries
  • Database & Directory Publishing
  • Environmental Consulting
  • Software Publishing

  • Products & Services
  • Real estate appraisal - commercial
  • Real estate appraisal - residential
  • Appraisal management
  • Consulting and other services
  • Chart: Real Estate Appraisal Industry Products and Services Segmentation

  • Demand Determinants
  • Income and confidence
  • Interest rates
  • Consumer preferences to purchases
  • Regulation

  • Major Markets
  • Financial institutions & brokers
  • Law offices
  • Private owners
  • Accountants
  • Government and other
  • Chart: Major Market Segmentation for the Real Estate Appraisal Industry

  • International Trade
    Business Locations
    Chart: Business Locations by State
    Market Share Concentration
    Key Success Factors
    Cost Structure Benchmarks
    ProfitWagesPurchases and depreciationOther costs
  • Chart: Cost Structure Benchmarking – Sector vs Real Estate Appraisal

  • Basis of Competition
  • External competition

  • Barriers to Entry
  • Table: Barrier to Entry Checklist for the Real Estate Appraisal Industry

  • Industry Globalization
    CBRE Group Inc.,
  • Table: CBRE Group Inc. - financial performance

  • Capital Intensity
  • Chart: Level of Capital Intensity for the Real Estate Appraisal Industry
  • Chart: Tools of the Trade: Growth Strategies for Success

  • Technology & Systems
    Revenue Volatility
  • Chart: Volatility vs Industry Growth

  • Regulation & Policy
    Industry Assistance
    Table: Industry Data for the Real Estate Appraisal Industry
  • Industry Revenue (2009-2023)
  • Industry Gross Product (2009-2023)
  • Establishments (2009-2023)
  • Businesses (2009-2023)
  • Employment (2009-2023)
  • Wages (2009-2023)
  • Existing home sales (2009-2023)

  • Table: Annual Percentage Change for Key Industry Data
    Table: Key Ratios for Industry Key Data
    Table: Industry Financial Ratios
    Broker Price Opinion
  • The estimated value of a property as determined by a real estate broker or qualified individual or firm (not a licensed appraiser).
  • Fair Market Value
  • The appraiser's opinion of value as written in an appraisal report. It should reflect what a willing seller would pay a willing buyer in an arm's-length transaction.
  • Walk-Through
  • An inspection that includes a visit to each part of the interior of the house used in estimating value.
  • What Our Customers Say

    Why buy this report?

    IBISWorld’s industry research report on Real Estate Appraisal can be used to help you understand the industry’s market size, growth potential and major companies. Five-year forecasts provide insight into the industry’s prospects, so you can make decisions with confidence. This information is perfectly suited to informing your business plans, pitch books, benchmarking and SWOT analysis.

    IBISWorld industry market research reports enable you to:
    • Find out about key industry trends
    • Identify threats and opportunities
    • Inform your decisions for marketing, strategy and planning
    • Quickly build competitive intelligence
    This report on Real Estate Appraisal:
    • Provides Market Size information to assist with planning and strategic decisions.
    • Includes the necessary information to perform SWOT, PEST and STEER analysis.
    • Helps you understand market dynamics to give you a deeper understanding of industry competition and the supply chain.
    • Analyses key performance and operational metrics so that you can benchmark against your own business, that of your customers’ businesses, or your competitors’ businesses.
    The Real Estate Appraisal market research report includes:
    • Historical data and analysis for the key drivers of this industry
    • A five-year forecast of the market and noted trends
    • Detailed research and segmentation for the main products and markets
    • An assessment of the competitive landscape and market shares for major companies
    • And of course, much more

    IBISWorld reports on thousands of industries around the world. Our clients rely on our information and data to stay up-to-date on industry trends across all industries. With this IBISWorld Industry Research Report on Real Estate Appraisal, you can expect thoroughly researched, reliable and current information that will help you to make faster, better business decisions.

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