Supervisor Spotlight – Peter Fontana
Peter Fontana is the principal and owner of Cornerstone Appraisal Service, a residential appraisal firm located in Central Montana. Fontana has more than thirty years of experience in the real estate appraisal profession. He has a diverse background with extensive experience in governmental appraisal, mass appraisal, personal property appraisal, single property appraisal, tax appeal and litigation. Having served on the Montana Board of Real Estate Appraisers for the past 17 years, Fontana is the longest serving board member, having been reappointed by three different governors. He has also served as a subject-matter expert for the Appraisal Qualifications Board for 10 years as an exam item writer, and served on the Appraisal Foundations Board of Trustees, in Washington D.C. Fontana began his career as the elected county assessor in one of Montana’s largest urban counties, then as a statewide appraisal supervisor for the Montana Department of Revenue, specializing in mass appraisal model development, and finally owning and operating a private fee appraisal firm.
Fontana graduated with a degree in finance from the University of Montana. He initially filled a vacant position for the county tax assessor, an elected role appointed by the Cascade County commission. Like many in the field, Fontana didn’t plan on entering this profession, it happened unexpectedly. While serving as the county assessor, he obtained his appraisal license. And, started his own appraisal practice simultaneously. By that time, Fontana had already managed 18 appraisers as part of his role as an elected official.
Community service has been the cornerstone of my career. Serving the community is core to my being – 100%. My continued mentorship, industry advocacy and community involvement are my way of giving back which becomes especially more meaningful as I sunset my career.
Fontana recognized early on in his career that investing in technology was crucial for growing the business. Collaborating with a software vendor, he transitioned from outdated hand-drawn sketches and film-based reports to fully digital, PDF versions. After successfully creating a digital report, and obtaining a positive response from clients, he began guaranteeing shorter turn times and delivering reports digitally. The business grew rapidly, and it became clear that he needed to bring on additional trainees to keep up with demand.
As the business expanded, Fontana realized his strengths lay in running a business, not just being an appraiser. His company had outgrown the converted bedroom office, and through his contacts from his previous work as a county assessor, he managed to bring on talented appraisers. Many of these contacts worked for both the government and him. His goal was to create a work environment that would retain top appraisers long-term – treating them as valuable assets and investing in their growth both financially and personally.
He designed an attractive pay structure, offering appraisers a retirement plan where 25% of their earnings at the end of the year would be added to their retirement fund. For example, an appraiser earning $100,000 would receive a $25,000 contribution. In addition, he covered all business expenses—computers, continuing education, gas, and a 401K, so his appraisers could focus solely on their work. Under his leadership, appraisers received a 65/35 fee split, with all expenses covered.
He noticed that many companies expected trainees to work for free, leading to high turnover after only a year and a half. But in his business, no one had left in 18 years. To ensure long-term sustainability, he devised a 10-year plan to flip the fee split from 65/35 to 35/65 in favor of the appraisers as he approaches his retirement. As Fontana begins to sunset his career he will continue to manage client relationships and will be around to help, but his team will manage the business. This arrangement allowed his appraisers to see the long-term benefits of staying with the company. Today, the company has five employees, each with an average tenure of 15 years. Last year, they generated in excess of $1 million in gross income, serving central Montana.
I could not have built my business without my team. By investing in their future we have one of the top producing and longest tenured firms in Montana.
By partnering with Appraisal Management Companies (AMCs), he expanded the business and his footprint, gaining access to lenders they couldn’t reach before. The company prides itself on delivering top-tier customer service, and they are busier than ever, even more so than before the Dodd-Frank Act.
When the market slows down, that’s when Fontana believes it’s most important to show employees that they are being invested in. Take the pandemic for example. Initially, he expected a downturn and secured a PPE loan, thinking he would need it to support his employees through the slower period. However, the business ended up being busier than ever, allowing him to not use the loan. He maintains that the best time to demonstrate deep commitment to employees is during slower times when their support is most needed.
Fontana believes the main challenge in the appraisal industry is that appraisers often limit their potential by focusing only on the immediate task at hand. Single appraiser shops, in particular, face difficulty growing because they lack long-term vision. Understanding that there was a better way to succeed, he built a company that not only thrives but also keeps its talented appraisers engaged and invested for the future.