What is a typical fee split rate?

[Jdh8n]

I'm working at a commercial appraisal firm and we're paid via fee split. What is the typical fee split percent for people with over a year of commercial appraisal experience?

 

[Sadie]

Residential appraiser here-fee split was 55% for in town and 60% for rural properties. That was a long time ago, but that is also what I will be paying my assistant when she is licensed.

 

[NachoPerito]

If you are still a trainee then it is peanuts. The trainee gets 30-35%. Once licensed it is 50% to 65%, but it also really depends on what the company is paying for and what you are paying for.

 

[The Warrior Monk]

It depends on the setup. The split for an independent contractor is going to be different from that of an employee.

 

[Michigan CG]

I pay my trainee by the hour and will until she can almost write a full report by herself. We do residential, farm and commercial properties. For instance, we have a $1,800 fee for an agricultural property. I appraised the property next door, literally, and have all the comps and the subject from last year sold since that appraisal last year. The report is basically written already. I am not willing to pay 30% for ten hours of work when she will only have about ten hours into it.

 

[spittman]

As far as residential, I don't believe there is a typical fee when starting out. For commercial it may be different. I think ideally you start out with a lower split and renegotiate after getting more experience. Bringing in more clients would also help your stake in the company. Whatever you do be careful with signing a non-compete agreement. My brother did that and could not start out on his own for 5 years AFTER leaving his sponsor. He basically had to buy out his contract.

 

[Deleted member 152047]

Commercial 30-35% as a trainee or some sort of salary with minimum production levels. When you get certified you should expect split levels between 35% and 45%.

As you gain experience, increase production, become designated, and get your own clients you would expect split levels above 45%. These will all vary depending on whether you work for a local firm or national. Generally, local firms will need to offer higher splits as they will not be able to provide as much revenue for you to tackle.

 

[The Warrior Monk]

As far as residential, I don't believe there is a typical fee when starting out. For commercial it may be different. I think ideally you start out with a lower split and renegotiate after getting more experience. Bringing in more clients would also help your stake in the company. Whatever you do be careful with signing a non-compete agreement. My brother did that and could not start out on his own for 5 years AFTER leaving his sponsor. He basically had to buy out his contract.

I hope he had this all reviewed by an attorney. Many non-competing agreements are not enforceable, even with employees. Others, such as those involving independent contractors, can be problematic for the company, because it may call into question the misclassification of the employment status, resulting in all sorts of fines and back taxes.

 

[The Warrior Monk]

Commercial 30-35% as a trainee or some sort of salary with minimum production levels. When you get certified you should expect split levels between 35% and 45%.

That's in line with the company I worked for when I first started (as an employee). The lowest split was 25%, but that involved someone with no experience whatsoever and no college degree...which was basically nobody at the company. Everyone else was 30% or more. They also had a good benefits package and stock options.

 

[Deleted member 152047]

It depends on the setup. The split for an independent contractor is going to be different from that of an employee.

A trainee cannot operate as an independent contractor.