Compensation

[Dave262]

Hello , thanks for taking the time to read and address this ( what I feel ) is a fundamental question , yet I see no mention of it anywhere here or anywhere else . I dont know any RE professinals . I dont know any Appraisers. I am a 55 y/o ex businessman , who is looking for a source of income for the next 3-4 years . I am considering becoming a Trainee (and later Certfied Appraiser in the state of Florida. I realize this is a broad question , so please do not respond with a typically broad answer , such as , "it all depends..........." I only want to know , what sort of compensation is typical for trainee appraisers ? I have no idea whet sort of money they earn. Do they typically get paid a salary , or by the job ? I have no problem "paying my dues" . But I am not a 24 y/o guy just getting started on a lifelong carreer either. I am a very hard workng , productive ,self starting non whiner who will offer someone some very
trustworthy and virtually trouble free production. Any insight as to how trainees can expect to be compensated wil be appreciated ,, thanks ,
Dave

 

[Ken B]

As a trainee, you will be an employee. You are required, by law, to receive minimum wage. Anything above that is gravy. You will probably recieve some form of fee split on any assignment given to you. Your minimum salary will probably be drawn from the fee split with any surplus paid out to you and any deficit carried forward to the next assignment. Don't plan on making much at all the first year. If you are looking for something to cover you only for the next 3-4 years, the appraisal profession is probably not such a good idea. Most find that they "pay their dues" for the first 4-6 years before they are in a position to experience anything resembling a decent income.

Don't forget to consider the costs associated with education and production. Your employer may or may not compensate you for these costs. If not, expect a higher fee split.

A big strike against you right now is that you state you don't know anyone in the business. Most people get into the business because they "know someone".

If you have any background in finance or real estate, you may have some luck finding a job in a corporate environment as a Real Estate Analyst.

 

[David Wimpelberg]

"it all depends..........."

Unfortunately, that is the general anwer. It depends on numerous things.

I only want to know , what sort of compensation is typical for trainee appraisers ? I have no idea whet sort of money they earn. Do they typically get paid a salary , or by the job ? I have no problem "paying my dues" . But I am not a 24 y/o guy just getting started on a lifelong carreer either. I am a very hard workng , productive ,self starting non whiner who will offer someone some very trustworthy and virtually trouble free production. Any insight as to how trainees can expect to be compensated wil be appreciated ,, thanks ,
Dave

That vast majority of appraisers start their careers by doing residential-lending-related work. In most markets, there is a HUGE oversupply of appraisers in that arena. This is due to the refi/sales boom over the past several years that has come to a screeching halt. We have some long-time appraisers on this forum stating that they haven't seen it this bad in decades. Many experienced appraisers are cutting their fees just for the hope of getting enough work to stay afloat. Some trainees are working for free to get their experience credits. I expect that situation to continue for the next several years.

Now if you were to enter through the commercial side of the business, the story may be a little different. It takes a great deal more effort, and will likely to be difficult to break into, but, IMHO, is more rewarding.

 

[PropertyEconomics]

As a trainee, you will be an employee. You are required, by law, to receive minimum wage. Anything above that is gravy. You will probably recieve some form of fee split on any assignment given to you. Your minimum salary will probably be drawn from the fee split with any surplus paid out to you and any deficit carried forward to the next assignment. Don't plan on making much at all the first year. If you are looking for something to cover you only for the next 3-4 years, the appraisal profession is probably not such a good idea. Most find that they "pay their dues" for the first 4-6 years before they are in a position to experience anything resembling a decent income.

Don't forget to consider the costs associated with education and production. Your employer may or may not compensate you for these costs. If not, expect a higher fee split.

A big strike against you right now is that you state you don't know anyone in the business. Most people get into the business because they "know someone".

If you have any background in finance or real estate, you may have some luck finding a job in a corporate environment as a Real Estate Analyst.

I dont think as a trainee you are an automatic employee. Certainly in my area no trainees are treated that way. A trainee would be placed on a very low fee split, around 30% (if you dont get one of the asses here who refuses to pay for the first fifty assignments). Only wanting to be in the business 3 - 4 years is your major downfall. I dont think this market will be strong enough to support you during the time you wish to learn.
Just my two cents worth. Not overly optimistic but honest.

 

[David Wimpelberg]

I dont think as a trainee you are an automatic employee.

I believe that in Florida there is no question about that point, due to the way their license license law is written. There's a few experts on FL law here, so maybe they can verify that point.

 

[Margaret Treat]

Hello Dave,
I made $13,000 my first year and worked endless hours, seven days most weeks. I had a mentor that did minimal training and if I did an assignment that got canceled after it was written I did not get compensated. If you have to learn things the hard way; looking them up, forum, doing it wrong then being told how to do it right, it is a slow and expensive process as a trainee.

It will depend on you and your mentor. As someone else said, you probably want to plan on having more time in this field for it to be profitable to train.

 

[ZZGAMAZZ]

Dave: Way off the thread, but what is a "General Public appraiser? I'm in Cali and don't recognize that designation. I presume it's assessor-related and curious about the requirements as well as the nomenclature.

Also, the employee-contractor issue seems to be a never ending discussion. My "employer" hired legal counsel who defined the fee appraisers as contractors. Counsel also approved a contract between the licensed supervisor and his or her trainees, requiring a trainee to reimburse the superviser approx $35K if the trainee decided to leave the company within 2 years of becoming licensed--as a form of repayment for the expense of training. I actually saw the contract but it was never implemented because the volume of business for everybody in the organization has declined by more than 50% during the past 3 months to the extent that the business model is virtually defunct...

 

[Avery Valentine]

I've Been a Trainee for 2 Years

I've had 2 different supervisors, both paid on commission. I only WISH I was an employee!!

My first sup started me at 30% and after 10 appraisals I went to 40%. In his office I was the trainee that did the most work, and during good months I made around $1400 a month. His business became slower and slower though, and he wasn't interested in marketing or building biz (I think he was close to retirement).

My second/current sup started me at 40% and now I'm at 45%. Last summer I made enough to live on. My biggest check was BIG (for me). Since October things have been slow and I've barely gotten ANY work from him. I've learned that these 'little guys' aren't the best to work for because when it's slow they take advantage of their biz and they suck up all the work.

Now I'm waiting to take my test. In the meantime I'm doing some side jobs to pay rent, feed my dogs, make car & ins payment and hopefully survive. Once I take my test, if I pass, my plan is to give this 3 months. If I don't have a good job by then, I may do something else.

As a trainee though, in my experience, you don't make much. You also don't have much control.

Anyway ...

Just my opinion -

 

[Dave262]

Thanks everyone who took the time to answer my question. So , I guess I will be better off just getting a job slicing cheese in a supermarket.

 

[David Wimpelberg]

Thanks everyone who took the time to answer my question. So , I guess I will be better off just getting a job slicing cheese in a supermarket.

That's the way a good businessman thinks! There are probably going to be a lot of appraisers (as well as mortgage brokers and RE agents) eating cheese sandwiches over the next couple of years.