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Alright, lets break it down then!

Discussion in 'General Appraisal Discussion' started by Appraisal Time, Nov 3, 2009.

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  1. Appraisal Time

    Appraisal Time Member

    0
    Jun 9, 2009
    Professional Status:
    Certified Residential Appraiser
    State:
    Virginia
    I constantly here some on this forum say they get about 10 appraisal a month average give or take. Ok now, assuming that they can get $350 for each appraisal (which honestly does not always happen in this AMC environment), that's only $3500 gross. That's without paying any taxes and business overhead cost & Fees.

    So how are so many appraisers making it every month with the average mortgage/rent of $1000-$1800, car payments and insurance, Utilities, food and gas. And this is not counting any other extra fees like kids school tuition and fees, extra curricular activities (Soccer, Football, etc), property taxes and insurance.

    This also includes NO vacation or recreation funds. So how are so many people making it in this profession (and I say the word profession lightly).

    Are people just not paying their taxes?

    Seems to me that the temptation would be to great not to go get a good regular job with benefits.

    Most of my friends are nowhere as near concerned about the economy and taking care of their families like most of us appraisers on this forum because they have regular jobs and they know where their next paycheck is coming from. And they act like it because they spend money what ever they want unlike many of us who have to penny pinch and save not because we want to but because there is no guarantee of where your next payment is coming from, if you're going to even get paid , and how much you'll get.

    Additionally, they have NO liability as to someone maybe suing them or worrying about state board infractions.

    Anyone else wondering how so many appraisers are making it (?), and are some of you having the same experiences with your friends?
     
  2. Tres Kirkland

    Tres Kirkland Junior Member

    0
    Oct 26, 2006
    Professional Status:
    Certified Residential Appraiser
    State:
    Georgia
    Maybe their spouses have good jobs? I've only had one month this year that was as bad as 10 orders. But, I would not be able to pay my bills if that is what I averaged. Sometimes I do envy my friends that have regular jobs, with paid vacation time - and real vacation time at that -(not having to carry the laptop in case something comes up) - a regular pay check. But, even those jobs are not that secure these days.
     
  3. Randolph Kinney

    Randolph Kinney Elite Member
    Gold Supporting Member

    169
    Apr 7, 2005
    Professional Status:
    Certified Residential Appraiser
    State:
    California
    Maybe they are over 62 and draw Social Security or maybe they get a disability payment from the VA or as already suggested, their spouse works.

    If appraisers don't have other income besides appraising, that is a strong inducement to quit this occupation.
     
  4. rescom

    rescom Senior Member

    0
    Jul 30, 2007
    Professional Status:
    Certified General Appraiser
    State:
    Missouri
    Thats simple. They are either retired or near retirement, have a second income, no kids, live in a single wide, and/or drive a 72 Pinto.
     
  5. panappr

    panappr Senior Member

    12
    Dec 5, 2007
    Professional Status:
    Certified Residential Appraiser
    State:
    California
    Transparency.

    Many many years ago when I used to train and run profitable fee shops (75/25 split), I made wheel barrels full of money and never concerned myself with overhead and taxes, just paid everything on the come, because I had endless prospects and was secure enough financially. Like most humans, I have lived exponentially increasing my life style buying bigger houses (5 in 20years), new cars, large TVs, retirement funds, recreational vehicles, etc. Should I ever feel guilty? Am I living like Bernie Madoff in disguise? Hardley. A couple of appraisers I know of have homes in excess of 2.5M and live in palatial gated communities (Calabasas). Twice I have appraised their homes over 20 years, and have observed their excesses. Truth be told..... I have been living off my savings for the last 2 years, and if things don't improve I will be forced to sell my home, and down size to a level I may not be comfortable with, but I have a large family and there's lots of love and that my friends is priceless.....
     
    Last edited: Nov 3, 2009
  6. TJSum

    TJSum Elite Member

    16
    Nov 12, 2007
    Professional Status:
    Certified Residential Appraiser
    State:
    Maryland
    This business has always been cyclical. One of the keys is to save a lot during the good times, to carry one through the slow times. During the boom years I was averaging 400 reports per year, then in 2007 I did 93 and 2008 I did 100. So far this year 145 with two months left. I need to do at least 10 per month just to think about breaking even with the routine bills.
     
  7. Dee Dee

    Dee Dee Elite Member

    1
    Jan 16, 2002
    Professional Status:
    Certified Residential Appraiser
    State:
    Colorado
    What rescom said, plus I think that if you knew a thing or two about those who boast the most about their success in appraising, you'll find that they've got a significant other who's job benefits are keeping them from sinking. I know a few appraisers that have all the appearances that they're doing well, but their debt load is outrageous. There are very, very few who are really doing as great as they imply...at least not single-handedly...but one could argue that these days that's true for most jobs outside of appraising.
     
  8. LACKLAND27

    LACKLAND27 Senior Member

    0
    Mar 6, 2008
    Professional Status:
    Certified Residential Appraiser
    State:
    New York
    I was guilty of the same excesses. I would always see the guys living large and over expanding. I would always think what jerks they were. I always ran my shop lean and mean. Then as things went crazy from 2002-2005 I too drank the Koolaid and started buying new equipment, servers, leasing expensive new cars every 2-3 yrs, the big mortgage etc. Then when it hit the fan there I was with my privates in hand. Luckily the wife was able to go back to work after 9+ yrs at home and I took a bank review job. I will never make the mistake again! m2:
     
  9. Vermonter

    Vermonter Senior Member

    35
    Mar 21, 2007
    Professional Status:
    Certified Residential Appraiser
    State:
    Vermont
    No debt and low overhead is the only reason I've stayed afloat this far.
     
  10. Diane Lagrou

    Diane Lagrou Junior Member

    0
    Dec 31, 2005
    Professional Status:
    Certified Residential Appraiser
    State:
    Ohio
    It has been touch and go here also. Hubby was laid off from his good paying job and now makes enough to cover about 70% of the bills. The rest I need to make up. With the way things have been over the past 6 months, that has been really tough. We have tightened our belts and dropped un-necessary "wants" and only keep the "needs". Along with investing in extra education and upgrading my license in hopes to grow the business with real clients, won't see much of a profit at all this year (probably no profit). I have learned the hard way from when times were better a few years back to save for future to carry through the slower times. Those paychecks don't roll in daily like they used too.
     
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