What's A Typical Fee Split?

[Ed]

I'm starting my Trainee Apprenticeship very soon. What's a typical fee split as a trainee. My mentor is setting up $75.00 per appraisal for the first month, then $100 per after that, until certified. If I bring in a client we'll set a different split.

Once certified and I decide to stay where I am, what's a typical fee split as a certified appraiser working with another certified appraiser with in the same office? I know everything is negotiable, but what should I expect? Any advice or input?

 

[TEL2002]

Probably every area is different.

Are you doing drive bys or full URAR's?
How far do you have to travel to get to the site?
Are the jobs cookie cutters or unique one of a kind properties?
Do you do all of your own research, typing, etc. or is there secretarial support?

Just remember you must pay for a good education at a good college...so working for a 'good' mentor that will actually teach you is probably not a financial windfall - at least at first.

Only you can answer how many $ is fair. My mentor told me when I started "Don't give up your day job." Was he ever correct. So I worked all day as a teacher, then did appraisals after school and on the weekends. Eventually he wanted to retire so a friend and I bought his business. Figure on 3 years to really get your feet wet enough to try to swim.

Also, the tougher the appraisals you do, the better appraiser you will become. Don't pass up the tough ones.

 

[Lysander in Charlotte]

Ed, you probably wont get too many direct answers to your question but here is a try. I work at a small appraisal firm which pays a 45% split to trainees which I understand is generous. Certifieds get 60%. These splits are for any "normal" appraisal. If it a complex property, billed at over our standard fee, the appraiser gets 100% of the overage. The idea here is that the house does not encounter extra overhead for a complex property, but the appraiser spends all the extra time.

My own opinion is that the 60% while being the market rate for this area is too low. Technology has changed the mechanics of the process. Appraisers now perform functions using the software available that were done by clerical staff. Hence the house does less all the time for their 40%. I'm seeing some upward pressure on the appraiser's split percentages. Firms that design a split structure that is commensurate with the value of the houses vs. the appraisers functions, tend to retain their appraisers. If splits are in equilibrium, there is to rush by newly certifieds to open their own firm.

 

[Ed]

Thanks for the information. The Appraiser I'm going to train with wants to create a situation with in his office that allows me to stay in his office (upon certification) and NOT WANT to leave or start my own operation.

He may even make me an employee and pay for health insurance. To be determined. All I need to do is be productive and hungry for more work.

I'm searching for information to see what is customary in the industry re; split fees during training and then once certified.

Any advice is taken seriously. This will become my new profession and career. Hopefully for the long term.