Reasonable fee split?

[Sammy Griffin]

I am a newbie in the process of interviewing with mentors. Can anyone tell me what a reasonable fee split should be for someone starting out (and what it should be graduated to once the mentor is just reviewing and signing)? Is the fee split basically the same in both residential and in commercial?

 

[wyecoyote]

Sammy,

There are several threads about fee splits, you might want to do some research and read what was previously mentioned.

I started out at 20%, then 25% with classess and 3 months in my belt. 30% began when I had 6 months experince. 35% when I was handling multiple files and the mentor was just walking through. 40% was when errors were not multiple and things were firing on most cylinders. 45% was pre licensing and I did not ask many questions because I had a general grasp.

That being said get everything in writing prior to starting. IMHO The mentor should walk through with you on every assignment even if it is to just breaze through the house when he is comfortable with your level of experince. Mine did and on more than one occasion he would ask me questions about the house ie.. what color of paint was the second level bath, was there splash blocks concrete or plastic on the downspouts, what make and model were the appliances. This kept me on my toes at all times.

Ryan

 

[Sammy Griffin]

Thanks. I looked through the other postings and only found one that discussed splits. Your information helps though - in line with what a couple of other people have told me.

 

[Randy Beigh]

Sammy

Like many other answers, it depends. The primary question that would have to answered deals with whether the company you are working for is employee based or independent contractor(IC).

There are still a lot of appraisal companies using IC's, so the fee split can be higher with, but you you have to pay your taxes and you get no benefits. With an employee based company, the company pays 1/2 the social security, as well as unemployment insurance and in our state Labor and Industries.

I run a company that is employee based and start the trainees out at 30% and after they are licensed/certified, it goes to 50% with possible increases in between. We buy all the supplies and equipment.

There are a wide variety of ways to run a company. Some will provide everything and others will provide nothing and still others that will provide the equipment, but charge you for the use. I have heard of people who charge rent for the office space.

So, listen to the potential employer and ask questions.

 

[Sammy Griffin]

Thanks Randy. I have been talking primarily with mentors in the commercial area. All are IC situations, and they do not pay for anything.

 

[Travis McGee]

Hello,

I got my license in May. I interview and talked to several fee split companies. The low ranged from 25% and the high from 40% with higher split when files are clean and I bring my own clients in. I have 1000 hours to complete. I travel far to do the appraisal, in my car and gas. It is hard work and the pay is not going to get you the BMW or much else. I focus on a 100% in the future and the knowledge for investing in the future. I have another job as a realtor, but hard to split the time without getting tired. I am in So. Cal, which may mean regional differences.