Appraiser Business Expense

[Hylopeeko]

Just wondering if some other folks would mind posting approximately how much business expense they put out per year? And approximately how much income those expenses bring in? Thank you.

 

[Michigan CG]

There are fixed costs and variable costs and the total percentage will drop the more volume you do. I expect to do about $20,000 more than last year but my expenses will be about the same as last year. So many things vary.

I made my coverage area smaller this summer going from two counties to basically one county except for certain assignments. It costs a lot of $$ to drive an F-150 80 miles round trip for a SFR assignment. I have more private work that pays better and consolidate those assignments for less driving. With a month or two turn time I can visit the insurance house on my way to a lending assignment.

Different appraisers doing similar work could have vastly different expenses depending on location.

Fixed costs:
E and O: $1,000 ($3mm coverage)
MLS: $1,800
Data Sources: $4,000 (can vary)
AI dues: $1,500
Software: $600
Cell Phone: $3,000
Internet/office phone: $2,400

Variable costs:
Auto expense $10,000 (I don't deduct mileage but actual auto expenses and every five years buy a new truck that I write off entirely.)
Computer expenses (ink, maintenance, etc, and replace every five years)
FICA taxes

So above I have about $25,000 in expenses and I left some off. An appraiser grossing $100,000 will have 25% +/- in expenses but the appraiser grossing $150,000 will have 17%. One also has to consider a specific person's situation. I don't have to pay for health insurance as we get it through the hospital my wife works at. Some appraisers have reported health insurance as being as much as $2,000/month.

 

[Terrel L. Shields]

Cell Phone: $3,000

WOW...what kind of phone do you have anyway?...

 

[Brian Cooper]

E&O is about $800
Licence is $125 (250 paid every other year)
Software $1,400
MLS $1000 (250/qtr)
Internet $720 / yr
Cell phone $600/yr
Appraisal Institute $1500 (waste of money)
gas and continuing education costs vary.

Roughly $6200 minimum.

 

[Terrel L. Shields]

gas and

You should be deducting your mileage which is intended to cover all costs of driving involving your assignments. Since I travel a bit for the kinds of property I value, I often have 5,000 to 10,000 annually in mileage even in my semi-retired state. I was at the courthouse yesterday (60 m. RT) I have an assignment 60 miles away (one way) to do next week, and a local one. Another slated for South Arkansas...