Trainee Pay

[BriSteiner]

I am an appraisal trainee with 6 months left in my training. My trainer wants me to start taking jobs and doing most of the work on my own and in turn will be changing to piecework instead of hourly. I am trying to analyze and come up with a fee sheet and need some advice. How much do others pay trainees for their work per report and how far along do you expect the report for the pay? If you could include your standard fee and in your area so I can calculate for area variances.

 

[Digger88]

back in the day when i had appraisers working under me if you were a trainee and could work on your own you got 40%. when you got certified you got 60%. what exactly do you mean doing most of the work on your own? how much?

 

[NC Appraising]

Most are 40-60%.

Depends on what the fees are for your mentor.

My avg fee is 400.

Some sign contracts with AMCs for 250-325.

Then you have to consider if they are paying for anything. Health, 401k, gas car, MLS, etc.

If nothing, I would ask for 60%.

FWIW I would try an hourly rate. Business is likely to slow for the next couple of years.

 

[Bob Ipock]

Until an appraiser can go out alone, inspect and create the report, then sign the report (which means licensed or certified) all I am willing to do is an hourly wage. If you can't sign it as an appraiser then you are not an appraiser.

 

[KYLECODY]

Way back in my early training days I received 35% per report, standard fee at the time was $350, 18ish yrs ago..So sad it has barely moved since that time. I did the report from start to finish and I was happy to get it. The "supervisor" would give it a cursory glance while I sat with him and make a few comments or changes. After 6 months of experience I had to get two different mentors to fulfill my hours and they both offered 50% and it was all email, I barely heard a peep out of them. Usually it was ok good, done...

The fully certed guys in the first company with 5-10 yrs in were getting 60%..That was common in the area working under a small, established company (less than 5 appraisers). Doing my "advanced math skills" I clocked the owner of the small office netting around 350k for his work and his cut off everyone else...The year before I had made 30k as a loan processor. Unfathomable money to me. Its no wonder most people branch out on their own as soon as possible which in turn led to no one willing/wanting to train anyone unless it was a close friend or family. This office had a revolt where the 60% guys finally got smart and tried to renegotiate their cut and the "owner" went batshiite crazy...They all went their separate ways and the day of the "revolt" were all in separate areas of the office calling clients trying to explain the situation and sway them to go with them and their "new" companies. It was like the movie Jerry Maguire if you remember that scene where everyone is trying to steal everyone's clients. After that, I got to look for a new mentor as my initial guy only had enough work left for himself after the revolt..Not great times but a great lesson for me.

It all worked out well for me overall...until the past month or so I'll be semi retired until it picks up apparently..

 

[ICT RE]

I made 50% through most (last 75% of hours) of my trainee experience. Our book ranged from $300-ish AMC work to traditional $400-ish direct work. I’ll say it was a 60/40 AMC-direct breakdown, overall, maybe 70/30. It wasn’t an awesome income, but it was something.

As far as working under another appraiser after licensed (in resi), it really seems like there is little incentive to support fee splits, from the subordinate party’s perspective. If you’re making 60% of fee - and let’s assume an average fee of $350, nine hours of work required, and 4.5 reports per week (I’m trying to be somewhat realistic here) - then that works out to $23/hour. Thats not even taking into consideration annual fixed costs like license/CE/E&O/software/MLS/etc, which is several thousand dollars.

That’s not live-in-a-cardboard box money, but it is low enough that it’s either someone who is biding their time prior to hanging their own shingle, or someone who has limited education/skills/experience otherwise. Considering the massive lowering of requirements by the AQB recently, it seems like the powers that be are actually looking for the latter profile, unfortunately. Race to the bottom with respect to competency and public trust in the resi realm.

 

[Raven59]

I am an appraisal trainee with 6 months left in my training. My trainer wants me to start taking jobs and doing most of the work on my own and in turn will be changing to piecework instead of hourly. I am trying to analyze and come up with a fee sheet and need some advice. How much do others pay trainees for their work per report and how far along do you expect the report for the pay? If you could include your standard fee and in your area so I can calculate for area variances.

A license puts you in a negotiating position; no license and being able to sign on your own is a handicap. Even though you have six months left, how long have you been working as a trainee and what are your capabilities. I've had trainees that took a couple years to stand on their owner and others still trying to get going after 3-4 years. The value is your skills today, are you efficient, are you conscious of the work product, and how much independence do you bring to the table? Too many what ifs

 

[Mike Kennedy]

I am an appraisal trainee with 6 months left in my training. My trainer wants me to start taking jobs and doing most of the work on my own and in turn will be changing to piecework instead of hourly. I am trying to analyze and come up with a fee sheet and need some advice. How much do others pay trainees for their work per report and how far along do you expect the report for the pay? If you could include your standard fee and in your area so I can calculate for area variances.

1. Clarify "doing most of the work on my own"

2. in writing with estimated % applied to each step in the appraisal process applicable to each assignment = "most of the work"

3. then apply the process percentage(s) to the gross appraisal fee to determine an equitable "cut".