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Benefits for Certified Appraisers

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Keith

Thread Starter
Sophomore Member
Joined
Jan 16, 2002
Professional Status
Certified Residential Appraiser
State
North Carolina
My question is: does any certified appraisers get benefits? Medical, dental or other? I get paid 55% commission with NO benefits. Is this reasonable?

I think it is B.S. I do all the work and should get paid at leat 75% of the fee. Where am I wrong? If they want 45 percent commission I want BENEFITS. Like McDonalds pays. Is this unreasonable? I pay for my own MLS dues and license.

I'm certified, I guess it's time to move on! Talk to me!
 

Pine Tree

Junior Member
Joined
Aug 19, 2002
Professional Status
Certified Residential Appraiser
State
Maine
Are you required to do marketing? Do you maintain your own work space, computer , software, E & O? If the employer does these things for you, do they have value?

I have been on both sides of that fence, and I have HAD a staff of 3 appraisers working for me.. I found that employees were not cost effctive. I paid a 50% split, provided workspace, a shared cost medical and all the resources neccessary to complete an appraisal including clerical to maintain files and field calls.. I was losing money and my mind. Perhaps, if you want those things you should break out on your own and create them for yourself or as you noted.. Work for MickeyD :p
 

Dee Dee

Elite Member
Joined
Jan 16, 2002
Professional Status
Certified Residential Appraiser
State
Colorado
Keith,
It's time to go out on your own.
Prepare yourself for a reality check.

:)
 

Mountain Man

Elite Member
Joined
Jan 15, 2002
Professional Status
Certified General Appraiser
State
Georgia
Agree with above. 55% sounds about right to me. When I was with our family firm, we paid 50%. But we provided the office, all equipment, dues, office staff, the works...... then to top it off, the appraisers were even paid on the jobs that we were stiffed. The "company" didn't make much money. Come to think of it, it probably wasn't enough to put up with all of the garbage.

Considering the idea of going out on your own.....
Warning, Warning Will Robinson. It cost mucho $$$ to run your own shop. Out on your own, you may make a wee bit more. But ALL of the cost of bizniz will come from YOUR checkbook. I am not saying don't go, I am just saying think about it...... look into the true cost of running a shop.
 

Ross (CO)

Senior Member
Joined
Jan 17, 2002
Professional Status
Certified Residential Appraiser
State
Colorado
If you are going out on your own, you will certainly start day-1 as one person. I think your absolute greatest advantage is the office in your home. If you get brick-and-mortar space outside of home you can kiss your profits good-bye, see plenty of extra bills to pay, and 99.3% of the time your clients will not be visiting your office anyway. You need the extra phone (fax/database dial-up modem) line at the house, and short of that your expenses are truly minimal. And, like Dee Dee and Lee Ann, who I recall have expressed feeling just fine about staying at home and typing up reports in their underwear, I at least wear pants. Must admit though, there's nothing like topless-typing on a warm summer day !
 

wyecoyote

Senior Member
Joined
Jan 15, 2002
Professional Status
Gvmt Agency, FNMA, HUD, VA etc.
State
Washington
Keith,

55% paid to you is not bad. The one thing you have to keep in mind with just federal medicare and Social Security taxes alone the employer pays 7.65% of your 55%. Then you have things like L&I, Unemployment, E&O, office supplies, office space, computers, and ETC.. I looked at it much the same way as you are currently. So let me just say that the start up costs alone were alot more than what I thought $4k-$5K even with my own computer, digital camera, and printer. The realty is that even with no staff (just me and my partner) our costs alone are running about 15-20% per month on a shoe string budget about to go up because we are moving into and actual office. So look at it this way the owner is paying you 55% operating costs probably run 25-30% he may be lucky and make 15-20% in profit margin if he is lucky. Just some thoughts on it.

Ryan
 

Judy Whitehead (Florida)

Senior Member
Joined
Jan 20, 2002
Professional Status
Certified Residential Appraiser
State
Florida
I agree, 55% is about as good as gets around here. I used to get just under 50% and had to pay for my E & O, all my taxes, gas,etc. The office covered office space, film development, data, software, computers, etc. I guess the bottom line, is are you receive other benefits that would make up some of that difference.

What you may find out when you go out on your own, is that the only clients you may be able to get are the ones who pay less and are looking for someone who will take less. You will find that the clients that you have probably won't leave the current office, so you have to be prepared for that. You may have a great working relationship with them, but you do have to be approved by lenders, for the most part. I figured most of them like 2-5 years as a state certified, as well.
 

Karl

Elite Member
Joined
Jan 15, 2002
Professional Status
Licensed Appraiser
State
Arizona
Been on both sides, If U got a GOOD boss U really may want to think Long & Hard about leaving. Everything I've learned I learned from those older than myself, I'm old now so hope you'll learn. 55% + a GOOD Boss & R U paid regardless if client pays or not & R U paid every 2 weeks? U check cost of supplies used in a weeks time? E & O Ins.? Subscription Dues? Software Dues? Data availability? including old files in office? The information able to obtain from other Appraiser's in office?
 

Farm Gal

Elite Member
Joined
Jan 14, 2002
Professional Status
Licensed Appraiser
State
Nebraska
..like Dee Dee and Lee Ann, who I recall have expressed feeling just fine about staying at home and typing up reports in their underwear, I at least wear pants. Must admit though, there's nothing like topless-typing on a warm summer day !

8O :2gunfire: I sayed "bunny slipppers and Jammies" thank you very much :puppydogeyes:

I sentence you to ten lashes with a wet T-shirt! And what you do with your pants during the process is between you and who-ever does the lashing :vamp: (and Puh-leeze don't tell me : I don't want to know!)

Kevin: Mickie D's pays starvation wages and found it cheaper to buy benefit services in bulk (and possessing the numbers to negotiate quite favorable terms they did so) than to deal with the absenteeism and re-training costs they experienced sans those benefits....

Small companies do not have that leverage. The costs to the employer for a 'great' benefit package probably would exceed your paycheck :roll: I strongly reccomend that you not only seek BIDS on the benefit package of your dreams but actually ACQUIRE it before you step out the door on your own: remember that QUOTES for insurance are very different than actually policy costs, and actual underwriting these days usally doesn't make your costs go down :roll: .

I believe you will find that the difference between what you THINK it is going to cost versus reality to approximate the margin by which the typical Homeowners NEED in appraised value differs from the reasonable appraised: just enough to make the deal fail.

Don't speculate: get out there and seek actual benefit packages: and BTW be very careful to do the right research or you will pay into programs that cannot and will not meet your needs if you should <gasp> actually need to USE them. Oh did I mention that these companies don't underwrite (tell you the truth about what the cost is gonna run) until you hand them a fat check, which they keep for 3-4 months during 'processing'? after which they can still turn you down or quote you a fee that has you demanding your $$ back?

That's daylight burning out there: go fast, seek truth...

Oh you also have to earn a living ? Gee maybe why the big corps have entire departments denoted to this scam (eerrrr problem).

You's a lil' wet behind the ears on this one bub :silly: : IF you want to jump into the pool of self-employed folks you may consider youself warned: the sign reads "beware of sharks"!

DON'T leave your position on bad terms, you may be begging for it back.
 

TC

Elite Member
Gold Supporting Member
Joined
Jan 31, 2002
Professional Status
Certified Residential Appraiser
State
Pennsylvania
55% split sounds pretty good to me. I don't know where its written that an employer has to pay benefits. Take your 55%, line up clients, secure office space, buy a digital camera, buy apraisal software, buy a printer, get a Fed Ex account, purchase E and O insurance, hire a full or part time secy, pay for your own education credits....get the picture? Make sure you are ready to make the move, and remember, this is a boom period, when things slow down newbies tend to be left behind on the appraiser list.

TC
 
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