Appropriate salary/fee split for commercial appraisers

[Gobears81]

Thanks everyone. The tough part is that the benefits, overhead, and to a lesser extent, the salary, convolute what it would be if based on a strict fee split. It is good to hear a lot of different perspectives on it though.

 

[Gobears81]

PM me and I'll be glad to talk to you ...

Just tried to send a message and it didn't go through, or perhaps I am doing it wrong. Maybe my lack of being able to figure out how to PM is why I'm having discussions about my salary being low

 

[PL1957]

Just tried to send a message and it didn't go through, or perhaps I am doing it wrong. Maybe my lack of being able to figure out how to PM is why I'm having discussions about my salary being low

If you click on my name, you should see an option that let's you send a private message ...

 

[Michigan CG]

.... Maybe my lack of being able to figure out how to PM is why I'm having discussions about my salary being low

Most likely it is because you are a Bears fan.

Click on the name of the person and on the left side of the screen you should see an option to send a private message. You will need to fill out a topic on the top of the PM that should have pooped up.

 

[Doug DeMars]

Oh ya...welcome to the forum! There's quite a bit of good "cheese" here...and you can stick around for the "whine". It will be nice to have some fresh forum blood.

 

[josephdifranco]

You can pm me, appears I can't pm or email you. I'm a cert. gen, Chicago area and have worked for a few firms over the past six years now. Likely have some good info for you.

 

[jennga63]

I have about the same experience as you - years on the job, certified, not too far from obtaining the designation. It is interesting to see the comments from other appraisers. I would be curious to know how large the company you work for is and what the average fee is.

A large national company I worked for started appraisers (certified or not) at just over 30% fee split PLUS benefits (retirement, insurance) but no vacation. Their fees are pretty good and young people in their early 20's with about two years of experience are earning just over $100,000 per year.

Perhaps average fee is irrelevant, since we are discussing percentage of billings. At some point your fee split should be based on how much time your boss or reviewer has to spend working with you. I'm guessing with your experience and education your boss or reviewer doesn't spent too much time working with you and in addition you are bringing in some work of your own.

It sounds to me your fee split is definitely low, even when considering your benefits. I have worked for small companies and the largest companies and haven't seen anything as low as 30% unless you are a trainee. I don't see how any appraiser can justify that split with your experience, certification, education, and candidacy for designation. It isn't hard to see why so many appraisers eventually go out on their own. Good luck to you.

 

[CBBoston]

With 7 years experience you should have a pretty good handle on commercial. Of course that assumes you've done a variety of properties and can crank them out. I know some very good appraisers who do great work but it takes them forever. Another way to look at this is what would it cost to start your own practice. As others have mentioned they are extensive. I mean data costs alone can be many thousands per year. The there's the issue of working across statelines. You can usually get a one time license no problem, just pay them. If you're doing lots of work in other states, you may have to actually get licensed in that state. Around here it seems like none of the states have the CE requirements, timing or approved courses. If this is the case costs add up really quickly. I'm always a bit leary of statements that you expenses should be about X% of income. If you don't bill a lot that percentage could easily be 60 or 70%. One of the things you would notice is that most of your expenses are fixed not variable. After your production exceeds the fixed costs a much higher proporton of every dollar billed goes to profit. Once you go thru this drill you'll have a much better idea of what is a "fair" fee split.

 

[stephenbullock]

I pay a good certified general appraiser 60% on an IC basis. If they could actually bring new appraisal business in the door, I'd pay up to 70% on those particular assignments.