Commercial Appraiser: Good Career Choice?

[Caligirl]

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.

In several cities located in my market $150K per annum is slightly above the median household income. $75K to $100K is probably more common for commercial appraisers working on split. That is a lot of hard work for below median income, just telling it like it is. With your background, IMO if you want to stick with appraisal you should look at the bigger firms like Cushman Wakefield. To go out on your own and make $150K will take years of hard work and a designation. Commercial brokers make more money, generally into the $300K to $500K range during busy years.

 

[Vernon Martin]

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.

1. It took me 22 years to get that far, but you can go a lot farther than 150k if you excell at a particular niche, whether it is a specialized property type, specialized valuation situation, geography or a specialized client base. An appraiser can make over $400,000 per year.

2. To move yourself up the income scale involves insight, chutzpah and talent. Find out what needs to be done and who needs it and then do it uncommonly well. When you know you are the best man to do it, it's time to go independent. No more fee splits.

 

[Artyman1200]

This decision shouldn't ultimately be about money. Insurance salesmen can make lots of money, but I would never sell insurance again. I tried with two different companies and finally decided I hated the work. I think you have to consider what you want to accomplish in CRE and what kind of lifestyle you want to have. There are opportunities in this industry for anybody. I've found that if you take qualifying education from the AI, have the credentials that mentors are looking for, are willing to relocate, and you are persistent, you'll eventually find a position.

The broker lifestyle is going to be different than the appraiser lifestyle. C&W is going to be different than working for a small shop. Working for a company is going to be different than working for yourself. What kind of hours do you want to work? How much do you want to travel? How stable do you want your income to be? I'm in a shop with 13 people. I come and go as I please and I make enough to enjoy life. It would be hard to trade what I have for the more corporate setting of a C&W outfit. More money wouldn't be worth it to me, but it might be worth it to you...

And keep in mind that $75-$100K goes alot further in TN than it does in CA...

 

[Caligirl]

1. It took me 22 years to get that far, but you can go a lot farther than 150k if you excell at a particular niche, whether it is a specialized property type, specialized valuation situation, geography or a specialized client base. An appraiser can make over $400,000 per year.

2. To move yourself up the income scale involves insight, chutzpah and talent. Find out what needs to be done and who needs it and then do it uncommonly well. When you know you are the best man to do it, it's time to go independent. No more fee splits.

Vernon is a good source of info and is from California.

Generally speaking to make over $400K you'll need to be working for municipalities and gov't agencies. In addition to paying very, very well this is one of the riskiest sectors for commercial appraisers. There have been some very well publicized and IMO unfair hit jobs on some highly respected appraisers over this type of work. I don't need to tell you that our state has some of the loudest environmental and taxpayer advocate gadflies so keep that in mind if you're looking into emminent domain as a niche.

 

[Ryan Bailey]

One word: Litigation!

 

[dgdfl09]

Just work for a reputable appraiser. I would not waste time on a MAI designation; the Appraisal Institute hypes their credentials. I've seen too many MAI reports that's nothing more than a sales job to the reader.

 

[JT1974]

Just work for a reputable appraiser. I would not waste time on a MAI designation; the Appraisal Institute hypes their credentials. I've seen too many MAI reports that's nothing more than a sales job to the reader.

This troll has made four posts in the last hour in four different threads trashing the AI and its designated members. Even the most notorious haters on this forum don't bash the AI at that rate.

WTF?

 

[PL1957]

This troll has made four posts in the last hour in four different threads trashing the AI and its designated members. Even the most notorious haters on this forum don't bash the AI at that rate.

WTF?

Sounds like someone who couldn't pass the comp ...

 

[Louis Pompeo]

In 5, 10, 15 years, considering inflation, $150K will not be what it is today.

You'll have to do a DCF to estimate exactly when you can get the equivalent of todays' $150K. Of course, the fees will probably not keep up with inflation, so you'll have to do more work for less.

Of course, you'll have to have a CGREA review and sign off on your conclusion.

 

[Smokey Bear]

Just work for a reputable appraiser. I would not waste time on a MAI designation; the Appraisal Institute hypes their credentials. I've seen too many MAI reports that's nothing more than a sales job to the reader.

I am NOT an AI designation fan, but a lot of jobs go to MAIs and a lot of clients require it. It doesn't mean the report will be good, but it does mean you'll get more work.