Fee split percentage

[Mike Seward]

I think it should be a two part question, the second part being what expenses do you pay?

One fee shop could be paying for office space, phones computers, marketing, E&O, public records software, appraisal software, flood, mapping etc. and be paying the sub bi weekly or monthly (regardless of if or when the owner gets paid.)

Another shop could be paying none of those things and be paying the sub when the owner gets paid (3 months later).

With the former arrangement, 55-60% could be a good split. With the latter, 75-80% would be fair.

 

[Blueprint]

These days, there is no such thing as average when it comes to fee split. If you are workin 4 other companies, you should demand at least 50%.

 

[doug clarke]

I paid 50% for the first 3 years of a fee appraiser's tenure and then 60% when he/she was able to handle all assignments without referring to me for consultation. 15% goes in my pocket and profit, and 25% goes to paying operating expenses. Basically, my portion of the appraiser's fee work went to my operating expenses. Therefore, 100% of my appraisal work went into my pocket. To make the office run smoothly, I needed 1 office help for every 2 appraisers, and I paid the office employees $18/hr. and my officer manager $40k/yr. The other expenses included online access, insurance, phone, rent, supplies and gasoline. This is why my office expenses were 25%. A suggestion to newbies if you care, learn from a good certified appraiser and when you are ready (5 years) start your own business. I started mine in 3.5 yrs. Never burn bridges. Real estate is a small industry, and bad decisions can later bite you in the butt. I hope the appraisal industry isn't extinct by then.

 

[NOGAVA]

I started as a trainee almost 3 yrs. ago with the company I am still currently with. We work as IC's, but MLS (2), E & O, software, etc. is picked up by the employer.

As a trainee I started out at 35%.
Bumped to 40% after 1st year.
Bumped to 45% after 18 months.
Currently at 50% with Certified right around the corner.

At some point I would like to transition into picking up and doing work with my own clients as well as split fee with my current company. Maybe even ask for a larger split with them if I cover all of my own expenses. We'll see. The market is too tough to guage at the moment to be speculating too much. Just happy to be staying busy right now.