Big 4 Accounting, Real Estate Valuation practice
Hello Everyone, I am a junior Accounting and Real Estate major. I am looking into Big four Real Estate valuation services. I understand that it consists of some audit support, financial modeling. Could anyone elaborate in detail what your job consists of as a professional at Big four real estate valuation service?
Thanks, Eric
Depends on the firm and location, regardless of what they tell you it's mostly audit support with a mix of "consulting" assignments. I spent over a year in Big4 REAS (i.e. Chicago, NYC, San Francisco), I was mostly performing purchase price allocations on large REIT/M&A deals, valuation work on random "consulting" assignments and audit support. I would estimate that 50% of my time was spend on PPA, 35% on audit support and 15% on consulting. There were people in my group who spent approximately 95% of their time on audit support. An individual's experience varies on skills and background. As you can imagine audit support work is mundane and can be performed by a trained monkey, but you are given the ability to look at different underwriting methodologies performed by clients.
To be honest if you are looking to do real estate, I would look elsewhere because you will get pigeonholed as an accountant and it's difficult to transition into Acquisitions/Asset Management. That being said, if you are interested in accounting and real estate, this would be a good landing spot and the work is exponentially more interesting than other areas in Big4 (e.g. Audit/Tax).
Please feel free to PM with any questions.
I think that it is a good place to learn a lot about the basics of real estate/ valuation. I wouldn't say that it is too difficult to transition to AM/acquisitions role as I know a good number of people who have done it, but as @Mandarin25" said above, sticking around more than a couple of years can definitely get you pigeonholed and lateral exit ops are going to be tough.
@mandarin & @bolo up" Thank you so much for your insight. I think I definitely have a clearer idea of the type of work they do. To be completely honest with you folks, I preferably want to begin my career in Accounting firm to qualify for the CPA designation.(Plan to stay for 4-6 years and get MBA trying to stay optimistic) @Mandarin25" Would you say turnover rate within the department is higher than other branches(Audit, tax)? also, I understand some consulting branches prefer its senior management to have an advance degree, would you say its a likewise for real estate valuation practice? (I am still new to the WSO and it appears I don't have a enough credit to PM you)
Haha no worries. Echoing @bolo up's comments you will definitely get good exposure and learn from the ground up. Turnover rate is much lower than the other branches, but Big4 is generally regarded as a revolving door. During my tenure eight people left. With the exception of top MBA/Masters Programs, typically people leave for buy-side roles so it's a great network builder to use later.
In regards to advanced degrees and designations, I worked for a MAI and there were a few MD's/Partners with MBA/MSRE degrees (even some mid-level managers), there are people with CFA/CPA's and other designations. Although, I think it's rare for career accountants to have MBA's (at least in my experiences because of the time commitment required), it's more common to see Masters of Tax/Accounting. I currently hold one designation (not CPA) and completed a majority of coursework required for state appraisal license from a previous role (but stopped to avoid being labelled as an appraiser). In order to advance, earning a designation is a requisite. You are planning on earning CPA which in Big4 is still the most important. To be honest, I think your plan is logical and definitely worth pursuing especially if you want to start in accounting. If you still can't PM me with questions, post them here and I will try to get back to you ASAP.
I second the above comments as a former colleague transitioned to a Big 4 real estate valuation role and said the same thing. Just out of curiosity, what is the pay range for those jobs?
@King Stannis for a first year in a top market it's $55-60k, incremental increases are negligible until Senior Associate which is a big jump to $80-85k and bonuses are approximately 3-10% based on rating (and tend to be political). I am not sure how much variance there is on pay between firms, I imagine it's fairly consistent. Although you are eligible for a bonus after completing CPA/CFA which can be substantial if you pass within the time constraints.
Would getting a general certified appraisers license typecast me? I have nearly three years of appraisal experience and 3/4 of the way towards licensure. I want to get it to have something to fall back on as the average age of a commercial appraiser is nearing 60. Though I want to leave appraising after getting it.
Not to say you can't or won't, but the chances of you doing anything else take a nosedive in my opinion. Whens the last time you saw an (insert institute here) appraisal professional outside of a Tax Valuation type firm or maybe a brokerage.
I've seen a few institute members on the institutional side (e.g. UBS, DB, JPM, ADIA), definitely a rarity. I was advised against pursuing MAI from current MAI's because of narrow focus and limited opportunities outside of appraisal. I remember interviewing for Acq./AM roles and was constantly asked "do you plan to pursue your MAI... blah blah" because I had appraisal institute courses on my resume (the answer was always no). I think the coursework is helpful for people starting their careers in CRE but ultimately a very narrow focus as you progress.
Quam aperiam delectus provident sint. Inventore ut culpa commodi voluptas quos est maxime.
Ab aut aliquam et maxime quis qui ducimus. Voluptatem nihil aliquid itaque qui ut vel. Veniam ut voluptas rerum et. Quisquam maiores consequatur est necessitatibus reprehenderit. Provident ut ratione iure consequatur officia et.
Quia cumque cumque et mollitia omnis. Totam et culpa quo ut libero alias consequatur. Rerum ad consequatur mollitia id rerum voluptas. In eaque eum molestiae aut. Saepe velit ea cupiditate et.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...