How much an average residential appraiser makes per year

[Ariba]

I just started doing residential appraisals under a mentor (friend of mine) part time. I have not started going to school for appraising yet, but have plans to this September. I have a full time job as a network engineer making approximately 60,000 per year. I'm trying to decide if I should stay in engineering and do appraisals on the side, or work towards doing appraisals full time one day. In your opinion, how much does an "Average" residential appraiser in your area make? Let's say this appraiser has had his/her license for 5 to 10 years. How much, in your opinion, does an average Commercial appraiser make? Any comments will help.

Keep your day job. It really depends on the market area. Here in Colorado IMHO 98% of the residential appraisers make less than $60,000 a year working 60-80 hours a week.

 

[liznindy]

Don't forget to factor in the cost of Self-Employment tax....Expenses 10-15%+, SE tax 15+%...also no employer paid health care insurance, life insurance, paid holidays, sick days, or vacation....


Yikes, I am beginning to think I should start looking at the employment ads!!

 

[xm2841]

Ron,
I personally know an appraiser in Denver who claims he pulled 300k in 2004, I lent $ in Denver in 04 and it was not what I consider a strong market. I believed him because he went to Italy for 6 weeks in early 2005. Not jumping on you but I think it can be done.

--JW

 

[Ariba]

Ron,
I personally know an appraiser in Denver who claims he pulled 300k in 2004, I lent $ in Denver in 04 and it was not what I consider a strong market. I believed him because he went to Italy for 6 weeks in early 2005. Not jumping on you but I think it can be done.

--JW

"who claims" I have a bridge for sale in NY or some swap land in Florida if your interested!

So in other words if he would have gone for to Italy for 7 weeks he probably would have made $400K. How does vaction time relate to how much you earn? Give me a break! The numbers just do not work Justin.

I know an appraiser with 15 years experience and clients that 2 years ago had 7 employees with an office. He made less than $200K. He is now works from home with no employess to make ends meet. Not because he wanted to.

 

[Smokey Bear]

Ron,
I personally know an appraiser in Denver who claims he pulled 300k in 2004, I lent $ in Denver in 04 and it was not what I consider a strong market. I believed him because he went to Italy for 6 weeks in early 2005. Not jumping on you but I think it can be done.

--JW

Prolly running a skippy mill with 20 trainees.

 

[Lawrence R.]

You can always work in other areas besides Fee appraising, like for the state dept of revenue. They pay decent wages, not get rich material, but you have lots of time off and good bennies. Working for a tax departmet for a large company, like wal mart, etc, does pay well and you can do well with little "pressure" from lenders, etc....

 

[millerappraisals]

Thank you for your post!

Keep your day job, I was in your profession or similar to yours for close to 20 years, I've missed it dearly. Trust me, there are good things in the appraisal profession, but IMHO nothing compared to the glory of "tech-geek".

If I could turn back the clock, I'd do it immediately with no second thought.

....:icon_idea: You could give appraisal a try to prepare for the "dark days of technology". If I was you I would spend time to take advanced courses in your current profession.... unless your are an entrepreneur and love it ....

I made $2150 last month, however there are $1,200 unpaid invoices. I used to take cash or check at the doors, but due to high competition and lack of work I have to accept "bill to lenders" ...

Thank all of you for your posts. They have been "EXTREMELY" helpful. The post above is very much like my own situation. I am currently on the edge of a major decision. The decision to take more certification classes to further my engineering career, or take appraisal classes. Also, there would be no reason spend the time furthering my engineering career if I am going to start full time appraising in the next 5 years. That is my delimma. I think for now, I am going to continue to further my engineering career and do appraising on the side. I already have a mentor who is laid back and will teach me at my own pace. If I want to get my license down the line, I will make that decision after I have been doing appraisals for a couple of years. Again, thank you all for your responses. Continue please.

 

[KYLECODY]

I think your choice is wise. For many appraising is the best part time job ever, money wise..full time can be rough..I think its a tough road if you plan on it being your only income stream consistently unless youre truly blessed with great clients. Most come and go. good luck.

 

[The Warrior Monk]

If I was in your position, I think I would stick with engineering.

If you decided to go into appraisal anyway, with an engineering background, I would recommend going straight into commercial appraising. Experienced commercial appraisers can easily make over $100K flying solo (no secretary, etc.), in both up and down markets. It will take a few years (plan on about 5) to get established.

 

[TEL2002]

Is the cart before the horse????????

Kurt,

I believe you have the cart before the horse.

Your userid is 'millerappraisals' and states you are an appraiser trainee.

But you said, "I just started doing residential appraisals under a mentor (friend of mine) part time. I have not started going to school for appraising yet, but have plans to this September". (My bold)

Since you have no appraisal education, are any of the hours you are working even usable for your experience hours? My guess would be no they are not. Do you have a MO appraiser trainee registration/license yet? Before you invest a lot of time, effort and $ in this venture check with the state regulatory agency on all of the state requirements & rules.

I hope you are not advertising yourself as an appraiser yet (Miller Appraisals???) That might get you into trouble with the state.

Take this entire process slow & easy. Don't skip a step or move forward without knowing ALL of the details and requirments. Doing otherwise could cost you a bundle of time & money.

As far as annual salary, take a look at all of the jobs your mentor has taken in over the last month, multiply times the averge fee and then multiply times 12. This should give you have a good idea what your potential is in the future. Every area is truly different on income for the following reasons.....
1. Total # of License/Certified appraisers covering the same territory.
2. Total # of appraiser trainees covering the same territory.
3. # of residences in the territory in need of appraisal services.
4. # of appraisal clients/lenders that hire appraisal services in the territory.
5. # of clients/lenders the individual appraiser has on their client rolls.

Personally, I bet you could do a lot better as an engineer.