How much an average residential appraiser makes per year

[Patrick W]

When I was doing RE sales part time (hell on earth and my hat is off to truly successful sales people), the saying was 90% of the sales people make $10 and hour and the rest make $100 an hour. The same is probably very much true for appraisers. The obvious difference between the two is the $10 an hour appraiser is sitting around waiting for the phone to ring and the $100 an hour appraiser is out finding business.

Kenneth,
I keep hearing about this $100 an hour appraiser and I am interested in knowing just how they do it. You say they are the one out finding business, what kind of business? The AMC's have taken the majority of the lender work at fees of e.g. 1004 for $175-$200. I assume you better work real fast or have a bunch of trainees working real cheap.

MB work is another option that pays more but will you comp check, let them constantly pressure you for values etc. Private non-lender work is another option but I still don't see how you can inspect, research, analyze and prepare a credible report fast enough to make $100 an hour at the fees most clients are willing to pay. At $100 an hour even if you only work 40 hours a week and take 2 weeks vacation that's $200,000 per year. Is this realistic?

 

[Artemis Fowl]

http://www.bls.gov/oco/ocos300.htm#emply

Visit this site.

 

[Ken B]

Kenneth,
I keep hearing about this $100 an hour appraiser and I am interested in knowing just how they do it. You say they are the one out finding business, what kind of business? The AMC's have taken the majority of the lender work at fees of e.g. 1004 for $175-$200. I assume you better work real fast or have a bunch of trainees working real cheap.

MB work is another option that pays more but will you comp check, let them constantly pressure you for values etc. Private non-lender work is another option but I still don't see how you can inspect, research, analyze and prepare a credible report fast enough to make $100 an hour at the fees most clients are willing to pay. At $100 an hour even if you only work 40 hours a week and take 2 weeks vacation that's $200,000 per year. Is this realistic?

Get educated, get designated, specialize in a unique property type and/or solicit litigation work. Kick mortgage work out to the licensed-only high school graduate for the lowest fee split that will keep him/her coming back for more.

Are you going to be able to do this within 3 years of being licensed? Unlikely. 5 years? Maybe. 10 years? Easy, if you have a plan. You do have a plan, don't you?

And don't confuse gross income with net income. You have to spend money to make money.

 

[Patrick W]

According to a 2004 survey by the Appraisal Institute most MAI designated appraisers make about $100,000 per year which also according to them is about $13,000 more than other residential appraisers. I assume most of these MAI designated appraisers must have a business plan and I also assume many specialize in litigation, unique properties etc. Does this work out to $100 per hour? I know these are 2004 figures but I don't think fees have gone up that much.

 

[Ken B]

"Most" as in mode? Or "most" as in median or mean? I don't care what a survey says. "Many" MAIs work for corporations or government agencies. Does the salary survey you reference include the value of benefits and/or bonuses?

And in my original post, I stated that 90% are the $10/hour earners and 10% are the $100/hour earners. I guess "most" are $10/hour earners.

What is your point, anyway?

 

[xm4yb7]

According to a 2004 survey by the Appraisal Institute most MAI designated appraisers make about $100,000 per year which also according to them is about $13,000 more than other residential appraisers. I assume most of these MAI designated appraisers must have a business plan and I also assume many specialize in litigation, unique properties etc. Does this work out to $100 per hour? I know these are 2004 figures but I don't think fees have gone up that much.

If they are making $100,000/year then they are probably billing close to $100/hr. As stated in an earlier post, billing $100/hr is around $200,000/year. They are taking home 50% of their billings.

 

[Patrick W]

My point was this, you stated " the difference between the $10 an hour appraiser and the $100 an hour appraiser is the $10 an hour appraiser is waiting for the phone to ring and the $100 an hour appraiser is just out finding business." Many appraisers I know tell me they are constantly reading and hearing about how much money they must be making and how easy their job is. My point was what you stated sounded like all you have to do is go out and find the business and quit waiting by the phone, it isn't quite that easy. If you can make $100 per hour I say more power to you but just making a living for many in this business is getting harder all the time.

 

[Ken B]

Fine, but my fee for litigation work "door-to-door" as an SRA is $125 an hour. I know for a fact that it is closer to $200 an hour for an MAI. Of course, this is market dependant.

So, as I was saying, the key to making money is:

1) Get educated
2) Get designated
3) Have a plan
4) Run your business like a business.

Regards,

Ken

Kenneth W Brown, SRA
MAI Associate Member
Bachelors, Leadership and Management, Mary Washington College
Graduate Certificate, Real Estate and Land Development, Virginia Commonwealth University
Real Estate Appraiser since 1991
Owner/Principal Appraiser, KB Appraisals, Fredericksburg, VA

(PS: I do not do AMC work. Period. And I never, ever said it is easy to be successful. Quite the contrary. You have to bust your ***. It is not cheap, either. I figure that each week of AI coursework I have taken, about 10 so far including the MAI courses, has cost me $3000-$4000 each considering the cost of the course, travel, hotel, meals, and lost business. No mere high school degree, online appraisal course, and sweatshop apprenticeship for me, thank you very much!)

 

[Patrick W]

Thanks for your good advice, I know I certainly don't have all your designations or credentials but remember when the game is over, the king and the pawn go into the same box.

 

[Ken B]

Thanks for your good advice, I know I certainly don't have all your designations or credentials but remember when the game is over, the king and the pawn go into the same box.

Historians write books about the King. That is as close to immortality as any of us will get.

I am done.