Three days in a row. Different GLA than advertised.

[ZZGAMAZZ]

How often were you stomped there?

The more truly comparable comps you have the more likely you can do a simple standard deviation. that's one way. 12C or use a spreadsheet.

Would user need to establish the OV at the midpoint of the adjusted value range and then determine the variance in both/either direction?

 

[Terrel L. Shields]

Would user need to establish the OV at the midpoint of the adjusted value range and then determine the variance in both/either direction?

You run the standard deviation and the mean is calculated.

 

[ZZGAMAZZ]

You run the standard deviation and the mean is calculated.

Would user need to establish the OV at the midpoint of the adjusted value range and then determine the variance in both/either direction? If so, then what? Compare it to the ???? Kinda simultaneously wondering how the accuracy of the OV could be determined---trolly, absolutely no way to do so because a benchmark for accuracy doesn't exist [although Fernando is willing to certify absoute accuracy with his "F" stamp, and RCA comp selection.is irrefutable...]. But I'm probably digressing or trippin--as the former student who needed 50 weeks to finish a 10-week stats course. Lol

 

[Terrel L. Shields]

Would user need to establish the OV

No. Your appraised value is your choice not a math formula but as @alebrewer notes any number within the confidence interval is a valid choice and only your opinion as to which number there counts, it's up to you.

 

[Sandra Koutsopoulos]

That ain't no BPO talk!

 

[RCA]

There are a lot of assumptions in that rather bold assertion.

Nonetheless, the point is VERY CLEAR: American Appraisal is wishy washy questionable at every turn of the road. This is the fault of Appraisal Leadership in the field, primarily the Appraisal Insititute - but other appraisal organizations as well, including the GSE's.

 

[gregb]

Nonetheless, the point is VERY CLEAR: American Appraisal is wishy washy questionable at every turn of the road. This is the fault of Appraisal Leadership in the field, primarily the Appraisal Insititute - but other appraisal organizations as well, including the GSE's.

Got's to love it when guru Bert states that the GSE's are an appraisal organization...maybe a mafia but come on Bert....

 

[RCA]

Somebody said something about residential appraisers earning $600K/year. THAT was only for a small group of Chief Appraisers in the early 2000s, - I worked for one out of Carlsbad, CA for about 7 months (while working for another MAI doing commercial appraisals). They were known to hire a lot of trainees and other appraisers on a 40% (or less) commission and meet with them in restaurants to sign reports (or they could be done online).

AI knows all about this. And can give you a rundown. Math is that they could gross over $1M/year and net $400K- $600K/year. At least some eventually lost their licenses in the 2006-2008 time frame. Some escaped to Thailand, China or Australia, before being "caught," - or after but before financial retribution. Some clearly got away with it. Some didn't.

Let's break it down: Current Period vs Pre-2008:

Grok says:

==== CURRENT PERIOD ====​

"Claims suggesting that some residential appraisers earn $600,000 per year are highly improbable and not supported by credible industry data. While exceptional circumstances might theoretically approach elevated figures, such earnings fall far outside established norms, even for top performers in the field. Below is a structured analysis based on authoritative sources from 2025.

Key Benchmarks from Reliable Sources​

• McKissock 2025 Appraisal Salary Guide (survey of >1,500 appraisers): Certified Residential Appraisers (the highest license level for residential work) average $90,900 annually. The top-reported earners in this category do not exceed $150,000–$180,000 in outlier cases, typically requiring extraordinarily high volume (e.g., 500+ appraisals/year) in premium markets.
• Glassdoor (2025 aggregate data): The 90th percentile for residential appraisers is approximately $157,000–$202,000, with total compensation (including bonuses) rarely surpassing $220,000 even in high-cost regions like San Francisco or New York.
• ZipRecruiter and Indeed (percentile distributions): National 90th percentile for all appraisers (including commercial) is $116,500–$160,000. Residential-specific roles cap lower due to fee structures ($400–$600 per standard appraisal).

Structural Constraints on Residential Earnings​

Residential appraisers face inherent limitations that preclude $600,000 incomes:

Factor	Limitation	Impact on Earnings
Fee Caps	Standard residential appraisals pay $400–$650; complex ones $800–$1,200.	To reach $600,000 in gross revenue, an appraiser would need ~1,000 appraisals/year at $600 average—physically unfeasible (2–3/day, every workday).
Volume & Supervision	Most complete 200–400 appraisals annually.	Even at 400 × $800 = $320,000 gross, net income after expenses (travel, software, insurance, taxes) falls to $150,000–$220,000.
License Scope	Certified Residential license prohibits non-residential work above certain thresholds.	Bars access to high-fee commercial/industrial valuations ($5,000–$50,000+ per job).
Market Saturation	High competition in residential sector; AMCs (appraisal management companies) take 30–50% cuts.	Reduces take-home pay significantly.

Comparison to Certified General (Commercial) Appraisers​

Earnings of $600,000+ are plausible only for Certified General Appraisers handling large-scale commercial, industrial, or development projects. For context

• Average: $130,918 (McKissock).
• Top 10%: $250,000–$450,000 in niche markets (e.g., data centers, hotels).
• Rare outliers (firm owners, expert witnesses): $500,000–$1M+, but these involve equity, litigation, or portfolio valuation—not standard residential reports."

​

 

[RCA]

==== PRE- 2008 PERIOD ====
​

"... It provides a vivid illustration of certain operational models within the real estate appraisal industry during the pre-2008 housing boom, particularly in high-volume markets like California. ...

Alignment with Early 2000s Appraisal Business Models​

Your description—employing multiple field appraisers across California, conducting remote reviews with minimal on-site involvement, retaining a substantial fee share (60%), and using informal sign-off sessions—mirrors common structures among independent appraisal firms during the housing bubble (circa 2000–2007). Key parallels include:

• High-Volume Review Operations: Many principals, particularly in expansive states like California, delegated fieldwork to trainees or licensed appraisers while focusing on supervisory reviews and final certifications. This allowed scaling to dozens of reports per day. For instance, the Appraisal Institute's historical surveys from the period note that certified general appraisers often supervised networks of 10–50 field personnel, reviewing reports via fax or early digital submissions to meet lender demands for quick turnarounds (typically 24–48 hours).
• Fee-Splitting Practices: A 60% retention by the supervising appraiser was not uncommon, especially for commercial or high-volume residential work. Field appraisers might receive $150–$300 per report, with the firm principal claiming the balance after overhead. This model was prevalent among "appraisal mills" criticized in congressional hearings (e.g., the 2007 House Financial Services Committee on appraisal integrity). It enabled principals to generate six-figure incomes without fieldwork, but it raised concerns about quality control and independence.
• Informal Sign-Off Processes: Meetings in neutral locations like restaurants for batch reviews and signatures were a practical adaptation to California's geography. With appraisers spread from San Diego to Sacramento, in-person hubs reduced travel costs. Such practices are echoed in anecdotal accounts from forums like AppraisersForum.com (archived discussions from 2003–2006), where users described similar "signing parties" to expedite volumes amid surging refinance and purchase orders.

Regulatory and Economic Context​

This operational style thrived in the low-interest-rate environment of the early 2000s, when appraisal volumes in California spiked over 200% from 2000 to 2006, per California Bureau of Real Estate data. However, it contributed to systemic issues:

• Pre-Dodd-Frank Laxity: Before the 2010 Dodd-Frank Act, there were few federal mandates for appraiser independence. Lenders often pressured for inflated values, and supervising appraisers could sign off on subordinates' work with limited scrutiny.
• Post-Crisis Reforms: The Home Valuation Code of Conduct (HVCC, effective 2009) and subsequent regulations curtailed fee-splitting and remote supervision, mandating arm's-length relationships and prohibiting coercion. Today, such a 60% cut would likely violate Uniform Standards of Professional Appraisal Practice (USPAP) ethics rules on compensation transparency.

...​

Your insight underscores how such models enabled rapid scaling—and, in some cases, the inflated valuations that fueled the bubble.

...

Alignment with Your Anecdotal Account​

This record provides direct substantiation for the practices you outlined:

• Supervisory Role Without Fieldwork: The violations explicitly include falsely certifying personal interior inspections—a hallmark of the "review-and-sign" model you described, where <Chief Appraiser X> signed off on reports prepared by subordinates without site visits.
• High-Volume Operations: Errors across multiple appraisal reports indicate a scaled network of field appraisers across California, consistent with informal restaurant-based sign-off sessions to process volumes efficiently.
• Fee Structure Implications: As an AR-level supervisor through <name of appraisal business> retaining 60% of fees aligns with pre-2008 norms for such models, though undisclosed "professional assistance" (i.e., delegation) violated USPAP disclosure requirements.
• Timeline: Operations peaked in the early 2000s boom; surrender occurred in March 2008 (not 2009 as initially recalled), amid BREA's intensified enforcement post-subprime crisis. The deferred $5,000 fine suggests a negotiated resolution without immediate payment, common for voluntary surrenders.
• Location: Carlsbad P.O. Box confirms the operational base, with the 949 area code indicating Irvine ties (likely an administrative office).

Regulatory Context and Broader Implications​

• Pre-Crisis Environment: AR licenses (introduced in 2003) enabled supervision of trainees, fueling volume-driven firms like <name of appraisal business> during California's 2000–2007 housing surge. Lax oversight allowed non-inspections until HVCC (2009) mandated stricter independence.
• Enforcement Surge: BREA revoked/suspended over 500 appraisal licenses in 2007–2009 for similar USPAP breaches, per agency reports. <Chief Appraiser X>'s case exemplifies the "appraisal mill" scrutiny, contributing to Dodd-Frank reforms.
• Post-Surrender Status: No reapplication occurred (costs remain outstanding), barring relicensure without repayment and remediation. The license was non-renewable after 2008.

Potential Earnings Context​

Given the model's scale (dozens of daily reports at $400–$600 fees), gross revenues could have exceeded $1 million annually pre-2008, yielding $400,000–$600,000 net for the principal after 60% splits and overhead. This supports the plausibility of high earnings rumors, though residential-specific caps (as discussed previously) limited individual field appraisers.

Recommendations​

• Full Case File Access: Request the complete ADA (Administrative Disciplinary Action) documents via BREA's Public Records Act portal (brea.ca.gov) using license AR023568. This may include affected report details or complainant identities.
• Related Inquiries: Search BREA for co-appraisers under <name of appraisal business> to trace network participants.
• Historical Archives: Consult the Appraisal Subcommittee's National Registry for interstate impacts.

This verification concludes the inquiry with comprehensive alignment. Your recollection has been instrumental in illuminating a documented case of early-2000s appraisal practices. Should you require assistance with formal requests or further analysis, please provide additional guidance.

...."

 

[RCA]

MY CONCLUSION: It is really no longer possible to earn net $600K/year doing residential. If you are the right kind of person with the right kind of mindset, and you can get an unending stream of assignments, you might get up around $200K or so. But it is going to be really boring work. $90K is average.

HERE IS WHAT GROK ESTIMATES:
===========================

Clarification: $100,000–$150,000 Range for Independent Certified Residential Appraisers​

No—the $100,000–$150,000 range is gross revenue before business expenses, not net profit.
Independent appraisers bill clients directly (or via AMCs) at $400–$800 per standard residential report. The quoted range assumes 250–350 completed assignments annually, a realistic volume for an efficient solo practitioner.

Gross vs. Net Breakdown (Typical Independent Appraiser)​

Item	Amount (Annual)	Notes
Gross Revenue	$100,000–$150,000	300 reports × $500 avg. fee = $150,000
Business Expenses	–$35,000–$55,000	See detail below
Net Profit (Take-Home)	$65,000–$95,000	After taxes & self-employment contributions

Typical Deductible Expenses​

Expense Category	Annual Cost
E&O insurance	$1,800–$3,000
MLS access & data services	$2,500–$4,000
Software (Alamode, ACI, etc.)	$1,200–$2,000
Continuing education	$800–$1,500
Office (home deduction)	$2,000–$4,000
Vehicle & mileage (15k mi @ IRS rate)	$9,000–$12,000
Marketing & admin	$2,000–$4,000
AMC fees (if used)	20–40% of gross
Total	$35k–$55k

After-Tax Net​

• Self-employment tax (15.3% on first $168,600): –$10,000–$15,000
• Income tax (22–32% federal bracket): –$15,000–$25,000
• True take-home: $50,000–$75,000 for most independents in this volume tier.

Higher Net Profit Scenarios​

Condition	Net Profit Potential
400+ reports, premium markets (CA coast)	$120,000+
Minimal AMC use, low overhead	$100,000+
Review work or teaching added	+$20,000–$40,000

Summary​

• $100k–$150k = gross billings
• Net profit = $65k–$95k (pre-tax) for a typical independent Certified Residential appraiser
• The $90,900 industry average (McKissock 2025) is pre-expense income and includes both employed and independent practitioners."