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  #1  
Old 11-03-2009, 11:07 AM
Appraisal Time's Avatar
Appraisal Time Appraisal Time is offline
 
Join Date: Jun 2009
Location: Jimmy John City
State: Virginia
Professional Status: Certified Residential Appraiser
Posts: 842
Default Alright, lets break it down then!

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?
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  #2  
Old 11-03-2009, 11:20 AM
Tres Kirkland Tres Kirkland is offline
 
Join Date: Oct 2006
Location: Metro Atlanta (Woodstock)
State: Georgia
Professional Status: Certified Residential Appraiser
Posts: 401
Default

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  
Old 11-03-2009, 11:23 AM
Randolph Kinney Randolph Kinney is offline
 
Join Date: Apr 2005
Location: SoCal
State: California
Professional Status: Certified Residential Appraiser
Posts: 19,842
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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  
Old 11-03-2009, 11:41 AM
rescom's Avatar
rescom rescom is offline
 
Join Date: Jul 2007
State: Missouri
Professional Status: Certified General Appraiser
Posts: 1,370
Default

Quote:
Originally Posted by Appraisal Time View Post
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?
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  
Old 11-03-2009, 12:41 PM
panappr panappr is offline
 
Join Date: Dec 2007
Location: Los Angeles
State: California
Professional Status: Certified Residential Appraiser
Posts: 4,772
Default 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 by panappr : 11-03-2009 at 01:02 PM.
  #6  
Old 11-03-2009, 12:52 PM
TJSum TJSum is offline
 
Join Date: Nov 2007
Location: Absurdastan
State: Maryland
Professional Status: Certified Residential Appraiser
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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.
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  #7  
Old 11-03-2009, 12:59 PM
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Dee Dee Dee Dee is offline
 
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Location: Colorado
State: Colorado
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Quote:
Originally Posted by rescom View Post
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.
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.
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  #8  
Old 11-03-2009, 01:03 PM
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LACKLAND27 LACKLAND27 is offline
 
Join Date: Mar 2008
Location: Queens, NY
State: New York
Professional Status: Certified Residential Appraiser
Posts: 1,578
Default

Quote:
Originally Posted by panappr View Post
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.....
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!
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  #9  
Old 11-03-2009, 02:59 PM
Vermonter Vermonter is offline
 
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State: Vermont
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No debt and low overhead is the only reason I've stayed afloat this far.
  #10  
Old 11-03-2009, 03:50 PM
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Diane Lagrou Diane Lagrou is offline
 
Join Date: Dec 2005
Location: North Canton, OH
State: Ohio
Professional Status: Certified Residential Appraiser
Posts: 329
Default

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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