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Part-time Appraisers And Impact On Fees

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Bobby Bucks

Elite Member
Joined
Jan 27, 2002
Professional Status
Real Estate Agent or Broker
State
North Dakota
In my last CE course I heard some guy whining about how all the part-time appraisers were harming fees. In his particular case, he’s the type who is always whining about something no matter how good things are. For some reason he loathed the semi-retired. The question begs, what is the true effect of part-timers? Do they lower fees, raise them or is there no effect?

About 15 years ago I recall chatting with an old timer who was in semi-retirement mode, he confided that he coasted along and performed anywhere between 1 to 4 assignment a week, depending on how energetic he was at the moment and if the fish were biting. He said he averaged about 2 ½ assignments a week. He was an extreme cherry picker and concentrated on cookie cutter and low risk assignments. Since that time, I ‘ve employed his method to some extent, naturally it will vary depending on how busy I am with other ventures.

With that being said, what is the effect on others? Certainly the choosier one is, it means there will be less demand for those remaining assignments, so shouldn’t that increase those fees? I argued with the guy in the CE class that I would prefer the effect of the semi-retired guy cherry picking to the crazed AMC zombie who is working 70 hours a week accepting every $200 URAR assignment he is offered. I would expect that the number of part-time to ¾ time appraisers will gradually increase in the next decade, so like it or not, here they come. This is one of the few businesses where one can participate at whatever level they wish.
B. Bucks, Esq. 2/3 appraiser, 1/3 goat roper
 
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timd354

Elite Member
Joined
Jan 11, 2008
Professional Status
Certified Residential Appraiser
State
Maryland
In my last CE course I heard some guy whining about how all the part-time appraisers were harming fees. In his particular case, he’s the type who is always whining about something no matter how good things are. For some reason he loathed the semi-retired. The question begs, what is the true effect of part-timers? Do they lower fees, raise them or is there no effect?

About 15 years ago I recall chatting with an old timer who was in semi-retirement mode, he confided that he coasted along and performed anywhere between 1 to 4 assignment a week, depending on how energetic he was at the moment and if the fish were biting. He said he averaged about 2 ½ assignments a week. He was an extreme cherry picker and concentrated on cookie cutter and low risk assignments. Since that time, I ‘ve employed his method to some extent, naturally it will vary depending on how busy I am with other ventures.

With that being said, what is the effect on others? Certainly the choosier one is, it means there will be less demand for those remaining assignments, so shouldn’t that increase those fees? I argued with the guy in the CE class that I would prefer the effect of the semi-retired guy cherry picking to the crazed AMC zombie who is working 70 hours a week accepting every $200 URAR assignment he is offered. I would expect that the number of part-time to ¾ time appraisers will gradually increase in the next decade, so like it or not, here they come. This is one of the few businesses where one can participate at whatever level they wish.
B. Bucks, Esq. 2/3 appraiser, 1/3 goat roper
I highly doubt that part-timers produce enough volume to have any impact on overall fess in most markets
 

JTip

Elite Member
Joined
Oct 12, 2004
Professional Status
Certified Residential Appraiser
State
Pennsylvania
I'm making MORE money PT. No boss to split it with ( I got $100, he got the rest). I take the assignments the 'cookie' appraisers don't want and get monster fees. Purchase with a rental grid? $450, nobody will touch it, $750 I'll do it.

You want it done in 24 business hours (inspect Thursday afternoon, delivered Sunday)? I'm your $600 man.

I can't imagine doing this full time for standard fees. I would feel 'used'.
 

Terrel L. Shields

Elite Member
Gold Supporting Member
Joined
May 2, 2002
Professional Status
Certified General Appraiser
State
Arkansas
My tendency would be to cherry pick the highest fee, not the easiest job... I've done about 3 dozen reports this year... averaging 4 figures...why do a $300 job out of any motive but largess?

1/3 goat roper
This goat roper is cuter, but I'd hate to clean her up for her in that mud. The goat didn't act very pleased either.
goatropinginthemud (Medium).JPG
 

J Grant

Elite Member
Joined
Dec 9, 2003
Professional Status
Certified Residential Appraiser
State
Florida
I doubt part timers have much affect on fees.

The big driver of fees is the profit back to lender and AMC from them. . Responsibility for the dire fee situation has to rest with those who profit from it.
 

DWiley

Elite Member
Joined
Apr 4, 2007
Professional Status
Certified Residential Appraiser
State
Tennessee
I doubt part timers have much affect on fees.
.


I would agree, with the possible exception of Florida. It seems every other appraiser who "retires" moves down there and sets up to do 1 or 2 deals a week. :)
 

Dale Smalley

Senior Member
Joined
Jan 15, 2002
Professional Status
Certified Residential Appraiser
State
Florida
The fees we have to pay to stay in business MLS, Insurance, Wintotal, licences, E&O. CE etc are too high to last very long as a part timer. But I do know several that have kept their license but don't do any work. Probally due to the shortage.
 

Michigander

Senior Member
Joined
Oct 23, 2003
Professional Status
Certified Residential Appraiser
State
Michigan
I am a part-timer. Part-timer because I have a full-time review gig. Part time work is mainly ERC and my fees are pretty substantial much of the time. If anything, I think the quoting of fees at the rate that I am willing to accept the work at actually helps others in comparison. My costs of running a business are pretty high in comparison to what I earn from that work, but I really think it is essential for reviewers to keep their feet on the ground and go through the same processes that field appraisers do. Makes you realize very quickly that things don't always fit neatly and you don't always know the answer.
 

bnmappraisal

Elite Member
Gold Supporting Member
Joined
Nov 9, 2011
Professional Status
Certified Residential Appraiser
State
Florida
but I really think it is essential for reviewers to keep their feet on the ground and go through the same processes that field appraisers do. Makes you realize very quickly that things don't always fit neatly and you don't always know the answer.
Well said. Salut'
 
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