• Welcome to AppraisersForum.com, the premier online  community for the discussion of real estate appraisal. Register a free account to be able to post and unlock additional forums and features.

Direct from Minnesota's largest appraisal school brochure!

Status
Not open for further replies.

Larry Lyke

Senior Member
Joined
Feb 2, 2002
For Career Appraisers

Financial institutions, appraisal companies or county assessors' [sic] offices may employ newly licensed registered real property appraisers. Self-employed appraisers may hire new appraisers to assist with legwork [sic]. The average beginning appraiser earns $500 per week for performing five appraisals. It is not uncommon, though, for an experienced appraiser to have a six-figure income.

My interpretation and comments:

-- This is a good example of how even writing an appraisal can give license to turning a phrase -- [turning into something it ought not to be]

Financial institutions, appraisal companies or county assessors' [sic] offices may employ newly licensed registered real property appraisers.

-- So far, so good.

Self-employed appraisers may hire new appraisers to assist with legwork[sic].

-- Even a poor copywriter wouldn't use "legwork."

The average beginning appraiser earns $500 per week for performing five appraisals.

-- Five a week before the end of the 1st year seems like a preposterous exaggeration.

It is not uncommon, though, for an experienced appraiser to have a six-figure income.

-- For 90% of appraisers, the word "income" ought to read "revenue."

--------------
I was in business on my own full-time for 4 years before I generated $100,000 "income." That was working 8-hour days + 3-hour evenings, at least 6 days a week, 11.888 months a year in a leap year, for godssakes!
--------------

Regardless of what people say about me, I considered myself average!!! Well, maybe a little above average! What say ye?
 

MikeMoranz

Freshman Member
Joined
Feb 12, 2003
Professional Status
Licensed Appraiser
State
Minnesota
Larry,
I start my first day appraising tomorrow. I was licensed last November and finally found a company to work for. The $500 a week is right on with what I will receive while "assisting" an experienced appraiser.

They hope that I will be able to go out on my own in 2-4 weeks. After that, I would be paid 45% of any appraisal. I was told that another appraiser with 2 years experience is doing 2 a day.

My background is 6 years real estate sales and 20 years engineering/drafting/design, so that will help me get on my own fast.

"-- Five a week before the end of the 1st year seems like a preposterous exaggeration."
I fully expect to be doing five a week within 6 months but my background is the only way that could happen.
Mike
 

Larry Lyke

Senior Member
Joined
Feb 2, 2002
Congratulations, Mike --

And welcome aboard!

I suspect you may be an exception to the advertisement I was critiquing. $500 a week to carry a guy who has real promise is another story.

And it depends on the type of appraising that you are doing, too. Support staff can make a big difference. The clerical stuff eats badly into running a business.

I see ads in the Sunday paper for really qualified appraisers, so go for it. When I use the phrase go out on your own, I'm, of course, talking about the solo practitioner. And, my other comments presuppose that revenue is not the income stream.

"-- Five a week before the end of the 1st year seems like a preposterous exaggeration."

Again, with an organization behind you, all you have to do is appraise. A goodly number of the respondents on this Forum are solo practicitioners, Then, you are your own secretary. With support staff the learning curve can close more quickly.

And things like who picks the Comps, does the research, how much prep, etc., make a huge difference.

Good luck in your new career. 'It's a wonderful life.'
 

Stone

Elite Member
Joined
Feb 1, 2002
Professional Status
Certified General Appraiser
State
Wisconsin
-- For 90% of appraisers, the word "income" ought to read "revenue."

Larry - that is a very valid point. It seems that appraisers and other self-employed people frequently confuse revenue with income. I would further add that many of those who take out expenses when discussing their income level still do not consider the higher taxes, lack of payroll taxes paid by an employer and Social Security owed when they figure out their income. When comparing what I make, I figure approximately 55% of my revenue equals a salary that would be paid by an employer. It is really tricky to compare self-employed income with payroll income.
 

Mike Simpson

Senior Member
Joined
Jan 30, 2002
Mike Moranz-

What do you mean "they hope that I'll be able to go out on my own in 2-4 weeks?"

Your supervisory appraiser must accompany you into the field (if they are signing the report did inspect) until you are either licensed or certified!

I turn appraisers into the authorities if I catch them sending newbies into the field and signing the reports "did inspect" sight unseen--that's fraud and easily discovered. I cannot and will not compete with appraiser's committing fraud as a regular course of business (be careful who you work for).

I just received a claim alert from my E & O Insurance carrier this afternoon as a matter of fact. I seems complaints against appraisers of this nature are on the increase over the past two years.

-Mike
 

Farm Gal

Elite Member
Joined
Jan 14, 2002
Professional Status
Licensed Appraiser
State
Nebraska
Mike Simpson:

Depends on your state and your client, I think... There is to my knowlege no requirement for a supervisory appraiser to accompany a trainee on an inspection AS LONG AS they are fully willing to sign off on and accept the appraisal report, AND/OR the client does not require a licensed or certified appraiser for their purposes.

That said:

Mike Moranz:

editing begins...
Sigh... I didn't read your post carefully enough, I did not catch that you already HAVE a license... so the below which was writ for anyone who DOESN'T have a ticket to practice... does not apparently apply to YOU! :wink:

So for anyone thinking that they can with all their construction/building/numbercrunching or whatever experience.....
End revision...

Even with no small amount of background which justifies cutting you loose on measureing a house on day one, there is more to the job than that! I personally do not feel that a newbie should be out on their own at 2 weeks of supervised 'doing it'. Even a person who takes to this stuff like a duck to water ought to have more supervision thatn that in MY opinion.

You do what ever you think is right, but consider the danger of getting yoruself in a position that precludes your continued ability to proceed in the filed, or worst case winds you up behind bars...

Not saying that is where you are headed, but you may want to do a little thinking on the possibility that your background and training may not permit a 100% flying grasp and comprehension of the finer points of this profession.

Just my opinion, but take care, sir! You might get let off the hook but 'they' are going to be watching you like a hawk thereafter...
 

Mike Garrett RAA

Elite Member
Gold Supporting Member
Joined
Jan 14, 2002
Professional Status
Certified Residential Appraiser
State
Colorado
I think the word income is ok as long as you have a clear understanding of Gross vs Net.

Some lenders don't care if the Supervisiory Appraiser inspects the property. Just remember when you sign it....you buy it, it becomes your report. My trainee is far enough along that she can do it all and I just review the report and sign off on it as "did not inspect".
 

jtrotta

Senior Member
Joined
Jan 16, 2002
Mike
you said you were licensed last November and finally found a company to work for. Therefore you are and must have some "in the field" experience already, so your projection appears fairly accurate. With all the chater regarding income, the first priority of this business is a good vehicle ($20 - $30,000) with an average life of about 5 years or you could opt for the cheap car and spend the balance in the repair shop. Depending on yer miles per year (3-5 life) so there's a good chunk of the gross right off the top.

at any rate good luck in your new adventure, cause it ain't just a job 8O

8)
 

Stone

Elite Member
Joined
Feb 1, 2002
Professional Status
Certified General Appraiser
State
Wisconsin
I think the word income is ok as long as you have a clear understanding of Gross vs Net.

People can call it whatever they want. It just seems that many people making the transition from a paycheck to being self-employed do not understand how to compare the two. I do think that when appraisers say to enough people "I make $zzz per year" and they are referring to their gross income, or even income minus basic expenses, that hurts the cause. It is harder to tell clients that you are going to charge more when they hear about the great salaries that appraisers make.
 

Terrel L. Shields

Elite Member
Gold Supporting Member
Joined
May 2, 2002
Professional Status
Certified General Appraiser
State
Arkansas
I do think that when appraisers say to enough people "I make $zzz per year" and they are referring to their gross income

I tend to find people have the habit of "inflating" more than appraisals. Reminds me of when I worked as an Operations Manager and accompanied my salesman into OKC to make calls on oil companies. We sold field services with crews in mobile labs we referred to as "units." We met some of our competition in the elevator downtown and small talk as it was, they asked how many units we had in the field and I said truthfully 7. After we got off the elevator, Jim said, "DON"T EVER tell the truth! They didn't. EVERYBODY tells you twice what they really have working. Now they are wondering how in the heck we have 3 ½ units working!!! Only use EVEN numbers so they can divide by two!"

I have grossed 100K only once since the oil patch pre-90. Net is roughly one-half. I can live on it. But it is far too small compensation considering the risk and workload.
ter
 
Status
Not open for further replies.
Find a Real Estate Appraiser - Enter Zip Code

Copyright © 2000-, AppraisersForum.com, All Rights Reserved
AppraisersForum.com is proudly hosted by the folks at
AppraiserSites.com
Top

AdBlock Detected

We get it, advertisements are annoying!

Sure, ad-blocking software does a great job at blocking ads, but it also blocks useful features of our website. For the best site experience please disable your AdBlocker.

I've Disabled AdBlock
No Thanks