Adding An Appraiser

[srbreedwell]

Just another observation - not really answering your question which has already been addressed - I grew up in an appraisal-business family and a decision was never made that didn't make business-sense. Nobody worked that didn't show an aptitude for decision making and potential to learn from every assignment how to do it faster and better next time. As you might imagine some did and some didn't.

That cut both ways - when the business hit a slow period and the decision was made to cut expenses on the backs of the appraisers, the blood-appraisers became competitors just like in real life. I eventually had to move to a different county to avoid embarrassing more "entitled" family. That kept peace in the family but just barely.

I guess I'm saying that hiring family might feel good but it has to make sense for everybody.

This is very interesting to me as I too grew up in a family with an appraisal practice. I was the first son licensed, My younger brother a year later and this was very much the approach my father took, however, my brother and I were fresh out of high school and he had a desire to see us succeed that superseded his desire to capitalize on us. Now that we're in our 30's with our own clients, he can make more rational business decisions for work he may not want but he thinks we might take if our clients happen to be slow. His rate is 30/70 favoring us.

In your case, your brother is certified, meaning of course that he doesn't require you to sign off on his assignments, regardless of his actual experience. As an older brother, who was charged with teaching the younger brother how to appraise for a year to get his hours, what it sounds like you're really asking is what do you charge family for a commission for work you brought to them because I'm assuming he doesn't yet have the established client base that you do. Much tougher question to answer because it's not a rational business question and really more about what is the value of your brother's work to your firm. As long as he has his own E&O and certification, his mistakes are his own, so liability, IMO shouldn't be a factor. If it were me, 20/80 for jobs you wouldn't do and 35/65 for jobs you would but would rather give to him for experience OR your clients want you to approve, 100% for his own work that you have nothing to do with.

At the end of the day, of course he doesn't have the client base that you do, but he is potential competition. Charging him an arm and a leg for use of your established processes may hurt you more than him if he chooses to leave, while rewarding him with high percentages for work that may never have been offered to you in the first place is basically still free money in your pocket.