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Recent upgrade to General

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greg zanger

Thread Starter
Freshman Member
Joined
Oct 18, 2004
Professional Status
Certified General Appraiser
State
Illinois
Hi -I just updated to General. I need to know if there is a place to see sample appraisals and a typical fee schedule for these in depth, time consuming appraisals. especially rural properties. Any information would be appreciated!
 

Lawrence R.

Senior Member
Joined
Mar 27, 2007
Professional Status
Certified General Appraiser
State
South Carolina
I can offer you no help there, I am in the process of upgrading as well.

I can, however, offer you a hearty CONGRATS on furthering your career.

:clapping: :clapping: :clapping: :clapping:
 

Abester

Senior Member
Joined
Jun 12, 2003
Professional Status
Certified General Appraiser
State
Florida
Set yourself up at at hourly rate that is reflective of other professionals in your field. If you're going to charge burger flipper rates, then you might as well flip burgers. Also, you can buy sample reports. Bell, for example, used to sell samples of self contained, summary and restricted use reports. I would have thought that your state would require samples of a certain number of commercial reports. Did you have a format that you used for the commercial work you did? This is the easiest place to start to make your own narrative style.
 

Ken B

Elite Member
Joined
Feb 18, 2004
Professional Status
Certified General Appraiser
State
Florida
I'm really confused here...you just upgraded to CG, yet you need work product samples and an idea of reasonable fees?

Illinois doesn't require commercial experience to upgrade to the CG license?
 

greg zanger

Thread Starter
Freshman Member
Joined
Oct 18, 2004
Professional Status
Certified General Appraiser
State
Illinois
To clear up the confusion - I know what I know now, but with the upgrade there is much more involved. I am getting requests for much more in depth appraisals, and just thought reviewing some samples would give me a good check on myself. Plus the time involved- what a good average is? Example: 1 farm, 2 farms, outbuildings, using all 3 approaches. Some get pretty involved.
 

Scott Lanz

Member
Joined
Dec 13, 2002
Professional Status
Certified General Appraiser
State
Minnesota
Greg,

First, congratulations.

There was a thread in this section that had links to commercial reports a couple of weeks ago.

As far as the fee, here are some ideas/processes that I use:

1. Always ask your clients where you are priced in the bidding process (if your not bidding call around to potential clients and ask what your market is charging)
2. Track every minute you spend working for six months, attribute that time to each report, admin, etc. Correlate your income based on your hours worked.

The steps above will assist you in first becoming competitive with your competition, and second, will answer profitability.

I set a goal every year of what I need/want for income based on my personal financial status. I will use some hypothetical numbers for an example.

Goal $100,000 annually
Average annual hours worked 2,500

$100,000 divided by 2,500 equals $40.00 per hour. Take your personal scenario and match with step 2 above.

If you work through this process you will soon see which assignments you can profit from and how much to charge for appraisals.

Ultimately, I think appraisers that specialize in a property type probably have the highest profit margin and was most likely based on the above analysis.

Some of my lowest fees are actually my highest profit margin assignments. I assisted another appraiser last year on an assignment and his fee was $25,000. In talking with him after he completed the assignment, he stated he barely broke even. My point is that high fees don't always mean higher profits.

You may see some ugly numbers when you are starting out.

Hope this helps

Scott J. Lanz
 

Abester

Senior Member
Joined
Jun 12, 2003
Professional Status
Certified General Appraiser
State
Florida
If your goal is to make $40 per hour, you might as well work at Toyota. My mentor was charging $50/hour in 1982. That rate is significantly higher now.
 

David Wimpelberg

Moderator
Staff member
Moderator
Joined
Mar 30, 2005
Professional Status
Certified General Appraiser
State
New York
It depends on where you work. Rates in NYC aren't going to be the same as in West Virginia.
 

Scott Lanz

Member
Joined
Dec 13, 2002
Professional Status
Certified General Appraiser
State
Minnesota
The numbers were hypothetical gentlemen, used for math purposes only. Although, if you Google "national average wage" and start looking at the numbers, $40.00 an hour is a pretty solid number. Even if you take 20% for being self-employed for expenses, it still leaves you at a the higher end of the range at $32.00 an hour.

Even if your billing $150 an hour, I doubt you would be billing 100% of the year. I would think billing professionals anticipate around 60%, or so, for billable hours.

Not everybody is motivated by money. Working for yourself, enjoying what you do, office atmosphere, time flexibility, etc. all play into choosing a career.

Scott J. Lanz
 
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