What is wrong with this picture?

[c w d]

I think every appraiser, if they haven't done it yet, needs to break their expenses down to a per hour basis based on a 40 hours work week. I mean everything you spend money on, home and office. Include what you need to/want to save or invest as well and include stuff like entertainment and vacations. And remember to not factor it on 52 weeks. You need to eliminate vacation & holiday time as well. Don't forget taxes either. For example, say my expenses run (hypothetically) $5/hour 24 hours a day 365 days a year when you squeeze those expenses to a 40 hour work week they turn out to be ~$20/hour based on 48 weeks 40hrs/week. Thats a big difference. Hypothetically, thats what I would need just to break even. That's not even getting ahead. So if you're working on a 10 hour appraisal and getting $200 minus any split you have with a company you work for.....you're not breaking even.

Once you've done that it really puts into perspective what you need to earn as an appraiser. If you can't support what you need to earn with what you can then it's time to seek higher credentials and certifications and/or another line of work.

 

[Michigan CG]

OK. Let's take 6 hours to do a report @ $300. Take out Mr. Garrett's $75/report ($18,750/year in expenses based on one report a day) and you have $225 left over. That is $37.50/hour. But we have to pay the employer part of the employment taxes which is 7.65% so now we are down to $34.63/hour. That is $1,385 for a 40 hour week or $69,260 for a 50 week year.

According to Salary.com the appraiser making the 75th percentile income makes $46,103 in Colorado Springs ($23.05/hour).

In Colorado Springs (sorry to pick on your town Mike) a specialty care nurse practioner at the 75th percentile makes $93,481/year or $46.74/hour.

A nurse practitioner has a 6 year degree and has to take CE to maintain a license. They went to school for six years without pay and had to do "rotations" for free.

Typical residential appraiser had to endure a two year paid internship and take 120 hours of education (now 180) which can be done in a matter of months (no college required). Does this justify $100/hour or how about $46.74/hour?

Just for fun, i looked up Real Estate Attorney. 75th percentile in Colorado Springs is $129,332/year or $64.67/hour. They have a little schooling to do and that little test called the BAR EXAM, most likely easier than the test that took me 90 minutes to complete.

 

[Mike Garrett RAA]

I wish I had 20 assignments a month every month. Only one month last year that I had more than 20. Did have 17 last month but the average is more like 15. My fees average better than $300 too. Still, what used to be a $75,000 a year job is now less than $50,000 BEFORE expenses and taxes. I am fortunately able to supplement that with some teaching (USPAP) and social security.

I keep reminding everyone the fees for VA appraisals IN MY MARKET have changed in 15 years. Also, there are more than 400 appraisers in the Pikes Peak region now.

 

[DTB]

OK. Let's take 6 hours to do a report @ $300. Take out Mr. Garrett's $75/report ($18,750/year in expenses based on one report a day) and you have $225 left over. That is $37.50/hour. But we have to pay the employer part of the employment taxes which is 7.65% so now we are down to $34.63/hour. That is $1,385 for a 40 hour week or $69,260 for a 50 week year.

According to Salary.com the appraiser making the 75th percentile income makes $46,103 in Colorado Springs ($23.05/hour).

In Colorado Springs (sorry to pick on your town Mike) a specialty care nurse practioner at the 75th percentile makes $93,481/year or $46.74/hour.

A nurse practitioner has a 6 year degree and has to take CE to maintain a license. They went to school for six years without pay and had to do "rotations" for free.

Typical residential appraiser had to endure a two year paid internship and take 120 hours of education (now 180) which can be done in a matter of months (no college required). Does this justify $100/hour or how about $46.74/hour?

Just for fun, i looked up Real Estate Attorney. 75th percentile in Colorado Springs is $129,332/year or $64.67/hour. They have a little schooling to do and that little test called the BAR EXAM, most likely easier than the test that took me 90 minutes to complete.

Tim,

How does collecting 5,500 in net rents per month work out with 15 hours of work? :new_smile-l:

 

[Jim Hill]

Hard to figure people sometimes.

I was talking with another appraiser the other day about the New National Valuation Service and I asked this person if they signed up yet.

I was shocked when this appraiser told me that they were happy working for a few different AMC's they have.

I then said but don't they only pay about $175.00 to $200.00 for a 1004 and they said yes.

I asked them why they thought their work and time was only worth that amount and they told me they are happy with these companies and have done work for them for the past few years.

I explained to them that I thought the work we do was worth between $350.00 to $400.00 dollars but they had this strange look on their face that made be realize many appraisers are their own worst enemy.

Why would anyone want to work for less money to perform the same job?

It's almost like when you get to old to understand common logic.


Jim Hill