Commercial Appraiser: Good Career Choice?

[barcelona]

Hello. I am an appraiser trainee (6 months in) interested in any feedback from establihsed commercial appraisers.

I have a bachelor's degree and MBA from two universities with good name recoginition within my state (West Coast). Prior to entering the appraisal profession, I worked in real estate development for 5 years doing financial & market analysis for a large company (that laid off all its workers in 2008).

I am GRATEFUL to be working in this economy and really enjoy the APPRAISAL work I do at this firm (large commercial valuations for office, retail, apartments, etc.). HOWEVER, I have taken a 50% pay cut and have no health benefits. I have my moments when I think: Is this even worth it??? Or I'll only do this as long as necessary??

Don't get me wrong, I am not your typical MBA guy motivated soley by money. However, I am currently making what I was paid 10 years ago (and that's BEFORE adjusting for inflation).

I have heard that commercial appraisers in big west coast markets top out around $150k per year. Not bad as far as I am concerned but I just worry that it will take 10 years to get there.

My bottom line questions are as follows:

1) If $150k is approx. amount that commercial appraisers in my market top out at, how long does it take to get there (5 yrs, 10 yrs, 15 yrs)???

2) What other "alligned" careers can I consider that will move me more quickly up the earning scale? (Real Estate Asset Management, RE Investment Management, etc.)

Thank you.

 

[The Warrior Monk]

If your looking to make $150K as a commercial appraiser, I would estimate 10 years in the business doing commercial work on a split fee basis and then going out on your own.

 

[PL1957]

That's a pretty low estimate for "top". There are quite a number of people who do better, either working for someone else or working for themselves; however, most of them are highly educated, highly motivated and very, very good at what they do. Don't expect to reach the "top" without a lot of work.

 

[JT1974]

Think of it this way. You could make more money as a developer or asset/investment manager. However, your compensation in those fields will likely fluxuate significantly (i.e. modest salary with potential for huge bonuses).

A career as a commercial appraiser will offer you the opportunity to make a very comfortable living. However, your compensation will be more like a steady annuity. I guess you have to decide if you want to swing for the fences (i.e. development) or take a career track that offers more stability but not much potential for a million dollar payday.

Regarding compensation.........it depends on the person. If you are a quick study and have excellent analytical and writing skills, you should be able to increase your pay rather quickly. I know people who broke six figures within 5 years and others who have been in the business for 20 years and are still trudging along at $40K per year. It really all comes down to how talented you are.

 

[josephdifranco]

For you, I think appraisal will take longer, and a job similar to your old position or a lateral move would be a bit quicker. With your experience, maybe you can get into real estate aquisitions, which I have heard can pay well.

I moved to commercial from residential appraisal and the pay cut was tough. Still, it turned out well because since I moved, residential has gotton worse. Again, your case is different.

The link below is to an area of a website where people post questions like yours, sometimes comparing one real estate field to another.

http://www.vault.com/community/mb/mb_main.jsp?forumtype=1&ch_id=259

Good luck.

 

[George Hatch]

If you're primarily about the money then this isn't the career for you. Not because you can't make a decent living - you can - but if that's your main motivator you will have a tough time walking away from the money when the situations require it. You can make a lot more money being crooked than honest in this business. The trick is in not getting caught.

That willingness to always say no when necessary is the primary "product" that we sell.

OTOH, if you like the work and you excel under pressure, the money will basically take care of itself. Make no mistake, though, making that money involves a lot of hard work compared to other occupations such as the one you trained for.

The bottom line is that if you're already considering your options and you're using the money as a primary filter then you might do better to cut your losses now and move on.

 

[BobfromSalem]

Right now....commercial appraisers have jobs......enough said. Real estate brokerage is subject to more boom-bust cycles....while commercial appraisal tends to be steadier (except for late 2008 into early 2009, when the economy really tanked).

 

[barcelona]

Thank you to everyone for your input.

 

[John Glass]

If your looking to make $150K as a commercial appraiser, I would estimate 10 years in the business doing commercial work on a split fee basis and then going out on your own.

Ditto. I am 10 years in and will likely be designated this year. I'll probably go on my own at that point.

 

[Financially Feasible]

This year is my first year on the commercial side after 5 years on the residential side. I think that I'm making slightly less than I had been... but when you factor in the learning curve plus the fact that I'm not pulling late-nighters... then I'm way ahead. Plus, I find commercial appraisal work to be so much more fulfilling. I must say that I got in at the right time... we've been inundated with apprenticeship requests as more and more small-time residential shops are going under (mine did not go under, btw). I just thought that it was the right time to get in (while I'm still young - still in my 20s... but not much longer!) and it's a good thing too because I filled the last spot in my commercial shop (11 people total). I love what I do and I'm so happy that I convinced myself (and my wife) to do it.