3. Review Appraising - Review appraising opportunities
exist for independent fee appraisers as well as in-house appraisers.
There are frequently in-house review appraisers at financial
institutions or governmental agencies that review the work of fee
appraisers. Additionally, they order and coordinate the appraisal
process for the financial institution. This function is considered an
important part of risk management for the financial institution or
agency. There are opportunities for review appraisers with backgrounds
in residential appraisal as well as commercial appraisal.
4. Assessors - Many of the employees of the ad valorem
tax assessor's office have real estate appraisal training. The
techniques are different (mass appraisal) than the fee appraiser but the
concepts are the same.
5. Where an Appraisal Background Can Be Helpful -
Mortgage brokers, real estate lenders, real estate brokers, and related
positions represent opportunities for individuals with an appraisal
background to bring specialized expertise to these positions.
Additionally, financial analysts with appraisal training who work in
these arenas frequently have a competitive advantage in the job market.
Where do I get a job after I complete my
appraisal training?
1. Fee Appraisers - Contact fee appraisers in your
community to offer assistance as a basis for learning the appraisal
process. It may be challenging to secure an appraisal trainee position,
however, a positive attitude and a willingness to offer the extra effort
that less experience requires will result in an opportunity to learn
more about appraising. Fee appraisers can be identified in the yellow
pages, from the state licensing agency or professional appraisal
organizations.
2. In-House Appraisers - Contact financial institutions
in your community to determine if they hire appraisers on staff and if
they have openings. Developing a working relationship with the
appropriate sources within these organizations could either result in
employment or setting the stage to secure work as a fee appraiser with
the organization.
3. Assessors - Contact assessor's offices to explore
employment opportunities in their organization. Be sure to determine if
the contact that has been made is for the entire organization or only
one division.
4. Appraisal Trade Associations - In addition to
providing a list of members, appraisal trade associations frequently
have information on companies looking for appraisers as well. Trade
associations can be identified in the yellow pages of major metropolitan
areas and on the internet.
5. Appraisal Management Companies - Appraisal
management companies appear to have in insatiable need for appraisers.
Appraisal management companies coordinate the appraisal ordering and
review function for a number of institutional clients. Appraisal
management companies can be identified on the internet using the key
words "appraisal+management".
How much can I expect to make as an appraiser?
Based on a 1999 study that was published in the Journal of Real Estate
Research, the average income for United States real estate appraisers
was over $58,000 with a maximum of $225,000.
RePEc:jre:issued:v:18:n:1:1999:p:377-393
Entry Level - During an appraiser's "apprentice" period, it is likely
that an appraiser could make more as an in-house appraiser than as a fee
appraiser. It is our experience that compensation for appraisal
assistants around $15 per hour, or 30 to 35 percent of an appraisal fee.
This can vary depending on an individuals related work experience. An
example would be someone who worked as a real estate broker or broker's
assistant prior to becoming an appraiser may be able to contribute more
than someone without any real estate in their background.
Residential Appraisers - As a fee appraiser many appraisers work on a
"fee split" basis. This means the appraiser is compensated based on a
percentage of the revenue that is generated for each appraisal. The fee
split generally ranges from 30 to 50 percent of the gross fee. Within a
year, an entry level appraiser should be in a position to produce an
average of at least one single-family residential appraisal per day. If
the typical appraisal fee is between $300 and $350 and a fee split of 30
to 50 percent; this would be $90 to $175 per day or $21,600 to $42,000
per year (48 weeks per year x 5 days per week).
Experienced residential appraisers have been known to produce between
two and three appraisals per day. This would result in 500 appraisals
per year or more. Based on the same $300 to $350 fee for an appraisal
and a 50 percent fee split this would be $75,000 to $87,500 per year
(500 appraisals per year x 50% fee split).
Obviously, if one owned their own company and generated these levels of
production the income could be higher.
Commercial Appraisers - Commercial appraisers generally work on a fee
split as well. This fee split generally ranges between 30 to 50 percent
depending on the amount of support that is being provided by the senior
appraiser / appraisal firm and the contribution that is made by the
junior appraiser.
The amount of revenue that commercial appraisers generate varies widely.
The variables include differing levels of
- competition in various geographies
- competency
- areas of specialization
- marketing expertise
- amount of energy that one is willing to commit to work
The potential exist for commercial appraisers to
generate $150,000 of gross revenue per year and more. The potential for
any given appraiser is largely dependent on their willingness to commit
time, energy, and focus to their appraisal career.
Summary
The income potential for a real estate appraiser is appealing.
Additionally, many find the time flexibility, respect from other
professionals, and relative ease of becoming a professional appraiser to
be motivating. Both education and experience are required to reach your
full potential, and finding a mentor who is willing to teach you the
appraisal profession is an important part of the process. The potential
for a rewarding, professional career that is well compensated is
dependent on each individuals desire, motivation and commitment.
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