Ed:
Judy is correct. We have all had to deal with this. I was one of the lucky ones. The appraiser who trained me started me off at a 40% fee split and didn't make me do clerical work so I could start producing with her right away. Also, it was a boom year for refinancing so the volume was high.
However, at the time I had a husband who brought home the steady bacon with a paycheck every two weeks. Still does, bless his heart. He carried me financially during the lean years. Does your wife have a steady income? Can she carry the monthly nut on her own if need be? If so, you probably can plunge in. On the other hand, if she is a stay-at-home mom with children or if she has a low-paying job or a varying paycheck herself, then I think she has plenty of reason to worry. I have known many appraisers who have left the industry because they couldn't get through the lean times.
The appraisal business over the past fifteen to twenty years - At least in my area - tends to run in five year cycles: Two years booming, two years lean, and one year so-so. How you do during the lean years depends upon your experience, how broad your client base is, how many clients you have, and what type of properties you appraise.
Those appraisers who starve tend to be strictly residential appraisers with just a couple of mortgage company clients. Those appraisers who do okay during the lean years tend to have more experience, appraise both residential and commercial properties and/or have other clients in addition to mortgage companies (banks, attorneys, CPAs, etc.) They also are those who have PUT MONEY ASIDE during the boom years. :wink:
The only thing certain in this business is that the work is rewarding for those with an analytical nature and above-average IQ, who like flexibility, aren't the type to stress over not ever having two paychecks that look the same, and genuinely like interacting with people.
I wish you the best of luck. And, by the way, what career are you changing from?
Theresa
