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got a job offer- need advice

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stevec

Thread Starter
Freshman Member
Joined
Jan 23, 2002
Got a job offer:

Background: I have no certification for appraisal. I have 11 years of ESA's , but have never actually appraised.

I'm in New York---Long Island specifically.

The job offer is this: Company will pay for my training, and the owner will train me personally for at least 6 months afterwards.

Salary = $35K first year--$40K second year. $50 a week car allowance.
Anything over 11 residential appraisals a week and I get 40%.

Here's the rub: They want me to sign a 5 year contract: After the first 2 years, I go Contractor Status and receive 40%. I have to sign a "no compete" clause that states if I leave I won't appraise for the duration of the contract at all in NYS.

Should I do this? In this area, the payout is usually in the 50-65% range after achieving certification. So I'll basically be shorting myself 10-25% for 3 years.

HELP!
 

wyecoyote

Senior Member
Joined
Jan 15, 2002
Professional Status
Gvmt Agency, FNMA, HUD, VA etc.
State
Washington
Steve,

Wouldn't do it. Not a 5 year contract. Especially with a No Compete clause.

Ryan
 

Mike Garrett RAA

Elite Member
Gold Supporting Member
Joined
Jan 14, 2002
Professional Status
Certified Residential Appraiser
State
Colorado
What you don't know and what I would need to know is......How good is the company, how good is the trainer? Expect to pay for your training. In my market, this would be acceptable by lots of people new to the business.
 

Dee Dee

Elite Member
Joined
Jan 16, 2002
Professional Status
Certified Residential Appraiser
State
Colorado
11 appraisals a week is going to have you working loooong hours if you don't have any assistance and especially if you're expected to cover a large territory.
Do you know what your boss gets paid per appraisal? That 40% commission bonus might not be all that great.
You're going to put a lot of wear on your vehicle if you have a broad territory to cover...and any appraiser can tell you how quickly those vehicle maintenance/replacement costs can tear into your income.
Will your boss cover the expense of a digital camera, software programs or any other necessities to do your job?
Another consideration...if you're working long hours, is it going to have an effect on your family life? I know many newer appraisers who have to drop out because a)they don't make enough to support their family or b)in order to support their family it means long hours and puts a huge strain on their relationships.
The 5-year contract is insane....I would NEVER do it.
Don't mean to sound negative, but just about every new appraiser starts out thinking that they're going to make big bucks within months after getting their license. I remember like it like it was yesterday...sitting there with my little calculator figuring out that if I did X amount of appraisals per week at X commission I would could make X dollars. Whoa! I was going to be rolling in the dough! NOT!!!!
What I didn't factor in was the research time, the driving time, the time spent at the keyboard going cross-eyed, the phone calls to verify information and set appointments, the time spent pondering what to do with a complex problem, and of course the inevitable problems that pop up right when you are the most swamped (sick kids, car breaks...you know, the things that need your immediate attention). Silly me...I never would have believed it if someone had told me that the inspection of the property I was appraising would be one of the LEAST time consuming and EASIEST parts of the job! Unfortunately that's what most newbies do, and it's quite a wake-up call when they find out.
Good luck in whatever decision you make.

Dee Dee
 

Dee Dee

Elite Member
Joined
Jan 16, 2002
Professional Status
Certified Residential Appraiser
State
Colorado
I'd pass on that offer.
Depending on how much assistance you get, eleven appraisals per week is going to have you working looong hours to earn that salary if you have to do it on your own.
After two years, and if you're certified, why settle for 50% when at that point you can head out on your own (assuming that you know what you're doing at that point)? And what if you decide that you don't like your employer? Yikes! You'll be hog-tied.
I'd definately pass.

Dee Dee
 

Dee Dee

Elite Member
Joined
Jan 16, 2002
Professional Status
Certified Residential Appraiser
State
Colorado
Oooohhh Phooey!
I was typing that first long-winded message, then when I went to send it I thought my carrier had kicked me off...it didn't say my message had been sent so I did another very condensed version and sent it off. Looks like they both got posted. Soooorrrryyy.
No more long posts...I promise!
:oops: :roll: :roll:
Dee Dee
 

Dan/Fla

Member
Joined
Jan 15, 2002
Professional Status
Certified Residential Appraiser
State
Florida
Pass on it When i started reading it sounded like a deal i would have loived starting out. But 11 reports a week, just starting I think a good number for brand new person not knowing the report, the data bases, and other things involved before you ever see the property plan for 5 Hiours per assignment maybe more or maybe a little less, Speed will come with time. so 11 X 5 = 55 that is if you can schedule perfectly. Humm no.

What if you can not stand the guy after working with him a few, Does no compete me you out of a career? That would be bad Love the Job but hate the Boss. But if Leave Boss I am out of a job?

Is Salary based on 11 a week, If you can get 11 a week consistanly with another company, If you can handle that many you would make more than salary mention. If I remember correctly I was given about 5 a week for first few months 1 a day is good to start with.
 

Mike Garrett RAA

Elite Member
Gold Supporting Member
Joined
Jan 14, 2002
Professional Status
Certified Residential Appraiser
State
Colorado
I am very experienced and there is no way I could do 11 a week! Also there are 4.33 weeks in a month, not 5. Sounds like a disaster waiting to happen....a new person doing that much, but then who am I to say. Lets see, if I was the supervisory appraiser and I had my own work load and an apprentice doing 11 a week......hmmmmmmm!
 

George Hatch

Elite Member
Gold Supporting Member
Joined
Jan 15, 2002
Professional Status
Certified General Appraiser
State
California
Not to be contrary to the other posters in this thread, but I would take the job. Reason being that breaking into the business has always been the hardest part of the process. This would give you an opportunity to earn valuable experience and prepare you to work on your own later on. I personally don't feel appraisers should go their own way for at least the first 3 or 4 years anyway. It's too hard to learn the basics in isolation.


But I would advise taking the job only under certain conditions:

-There are no other options available to you in your area. None.

-The company would have to be a market leader in their area

-You should find out how good their reputation for competence and integrity is, because if you go with them you will wear their mark for a long time. If their clients rave about how easy the appraisers are to work with and how they can always find a way to bring in the deal, run for your life (in the opposite direction).

-They should be able to demonstrate at least a working relationship with their technology; computerization, multiple databases, digital imaging, and maybe even EDI capabilities. You'll not come close to your quota without the proper resources.

-Don't plan on breaking past the 11/week quota more than a few times a year at the most. They would have to have the volume, the work would have to be very simple and geographically close, and you would need to have the drive and ambition to work the necessary hours (60+ hours). In other words, you should plan on being able to live on their base wage.

-Plan on taking every appraisal course there is that is applicable to your interests (residential or commercial). Consider taking a home inspection course as well. Use this time wisely, to truly earn journeyman status in your profession. Needless to say, time spent in classes is time spent away from your workload, so your (monetary) earnings will suffer a little.


-If you sign a contract with these people, make sure there is an out for you if they demonstrate serious unethical, fraudulent and/or criminal behavior. If it isn't in their contract then either put it in or walk. That way if they violate the law while you are working there, you can collect the evidence and save it for a rainy day. Contracts can be mutually entered or mutually broken, if you know what I mean.

-Consider your 5 years a chance at receiving paid training towards being a professional rather than a prison sentence to be served.

-Don't plan on taking any business from their clients for at least a couple years after your relationship ends with your company. There are other clients out there.

-Whatever decision you make, live with it cheerfully. Everyone pays their dues in this business, one way or another.


I know it looks like a lot to ask for, but it really isn't. I think that if even one of these criteria are missing that you should consider going elsewhere. Don't be afraid to ask the questions. They will only think you're a jerk if they are struggling with these issues. If they are running a quality shop, they'll be impressed that you're serious enough to give consideration to these elements. A 5-year committment is a lot to ask for and a lot to offer; for both sides of the arrangement.


George Hatch
 

Bruce Aseltine

Freshman Member
Joined
Feb 21, 2002
In my State of California, it is illegal to have a "no compete/competitors" clause unless there is some type of compensation to cover the period. Being very knew to the Appraisal Industry (will receive my Trainee license in June), I wouldn't do it. 5 years is a long time. I would probably sign a 2-3 year contract, but not a 5 year contract unless . . . there was a guarenteed income in there somewhere and I am sure that there is not.

After about 2-3 years of "Trainee experience" you could effectively break out on your own assuming that you have all the equipment that you need.

The only way that I would sign a 5-year contract is if there was guaranteed income of $zzz per year, during this period they could not lay me off or terminate the contract in any way whatsoever unless there was gross violation of company policies (stealing, breaking USPAP, etc..), and I would also sign it stating that I would not leave either during the period of employment.

Good luck
 
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