Lindsay,

You are absolutely correct that there has been no pay raise for appraisers in 10 years, in fact appraisers now get paid roughly 70% of what they were being paid 10 years ago. Factor in an increase in the cost of everything that you buy and you’re probably bringing in 50% of what you were bringing home 10 years ago. Now let’s take it a step further: You’re easily doing twice the work per appraisal that you were putting into each order 10 years ago. Factor that in and let’s say you’re making 25% of what you were making 10 years ago (taking your increased labor into account).

You are also absolutely right in stating that nobody is (or will be) willing to pay $800 for a basic appraisal order. What I was trying to say in a nice way is that if you aren’t charging $800 for an appraisal order today you are a fool to be in this business. Since nobody is charging $800 for a basic appraisal I suppose that makes every active appraiser a fool. April Fools in this case. What irony.

Why is it that appraisers swear on their lives to be professional assessors of value when they can’t even assess the value of their own time?

Good comments Linday, but let me add a few. After I received my certified license several years back I was limited on who would add me to a panel as Flagstar Bank at the time had a requirement for 5 years of experience after licensing. This requirement prevented me from joining many companies as I technically could not work for all of their clients. In more recent times I was added to a panel only after It was confirmed that I had a minimum of 10 years of experience post certified licensing. I also recently completed a jumbo loan field review after I met the clients specific 8 years of experience. Lastly, I know of many appraisers who have been on the VA panel wait list for several yeas. The journey to receive your license may only be the beginning of the wait period before one may become fully employable. If you say the trip is 6.5 years than you may need to add an additional 3 to 10 years to consider yourself fully employable (9.5 to 16.5 years).

Might want to think again on your fee range. My child just completed 4 yrs with a BA in computer science and landed a job at 50k to start. I wouldn’t wish your fees on anyone coming out of college. Just my opinion though.

For those that believe a degree is the best and only path for the Real Estate Appraising Profession as a whole, then you need to read the requirements for an Apprentice Program. Apprentice Programs are how a wanna be Appraiser becomes an Expert Appraiser.  

Lets examine what the requirements are just to apply to take the Certified Appraiser License test:

Four years to complete the degree and the cost of the degree

Six – twelve months to complete the State Mandate Appraising classes and the cost of the classes $2,500 – Two hundred (200) creditable class hours as specified in the Required Core Curriculum

Pass Trainee License Exam – Cost of exam(s)

One day – many years to obtain a Supervisor – Hopefully this is a family member that has been patient for you to finish this education and willing to pay your student loans, healthcare due to Obama Care and give you a paycheck. Candidates that have no relative or prior agreement with Certified Appraiser – Good Luck –

Obtaining clients willing to accept appraisals from Trainee and eventually Licensed Appraiser.

Minimum two years + for mandatory experience  (Working for free) Two thousand five hundred (2,500) hours of qualifying experience obtained in no fewer than twenty-four (24) months.

Obtain clients that already have their Appraisers and not willing to accept new Appraisers due to newbies never give them the number they want.

That equals 4 + .5 + 2 = 6.5 total years invested just to apply to take the Certified Residential License Test. 

Hmm… 4 years for a degree and 2 years for a Master’s Degree. = 6 years. Making Money to pay off loans and get out of parents house!!

No one has to pay your student loans due to you are still in college. Deferred Payment. Loans or Parents still paying for you to complete degrees.   

There has not been an increase in Appraisal fees for 10 years so I don’t know how anyone is going to charge $800 for an appraisal. Being realistic – $450.00 fee for an appraisal (if you create your own business) with minimum of 6.5 years of education and experience. Possibly 250.00 split fee due to paying your share of expenses for firm you work at. 

Don’t forget expenses as an Appraiser you should be able to calculate your pay, subtract all Accountant fees, business licenses fees, business equipment costs, business equipment taxes, access fees, continue education fees, license renewal fees, vehicle fees, gas, membership fees, health care coverage, dental coverage, (401) retirement account and various other expenses. 

A college degree in basket weaving, graphic artist, photography, drama, child and adolescent development or sports medicine has minimal if any impact on an Appraiser evolving into an expert in the Art of Real Estate Appraising. 

Practical experience is the Key to Real Estate Appraising success.   

Appraising is an Apprenticeable Occupation.  An Apprenticeable Occupation is a skilled trade which is customarily learned in a practical way through a structured systematic program of on-the-job supervised work experience, is clearly identifiable and recognized throughout an industry, and involves manual, mechanical or technical skills which requires a minimum or 2,000 hours of on-the-job work experience, requires related instruction to supplement the on-the-job work experience. Any college degree probably has nothing to do with a career as an Appraiser unless the degree is specifically for Real Estate Appraising. Although, certain college classes are beneficial to the Appraiser and appraising profession they should not be mandatory. Examples of suggested college classes: Economics, Accounting and Business Writing.

Even with the state’s 7.4% August unemployment rate, businesses and organizations have been scouring job boards for applicants with technical expertise and trade skills — especially in the areas of construction, IT and computer programming, robotics operation, basic engineering and health care work.

The jobs, while not immune to economic downturns, have weathered decades of offshoring and worker elimination via automation. The typical pay is between $30,000 to $80,000 a year — not including overtime.

These jobs are often in traditional blue-collar fields, but in today’s economy, some of these workers can bring home bigger paychecks than their white-collar peers in office cubicles. A job posting may still list a bachelor’s degree as desirable, but the key phrase is “or equivalent experience.”

Apprenticeship Program is the best education to make a Wanna be Appraiser into an Expert Appraiser!

Thank you for your time and consideration on this matter.

This info is from here and here.

Or to become a U.S. Senator!

You’re selling yourself short if you think $500 is an adequate fee considering the massive scope that’s taken place since 2009.

1. Eliminate the monthly AMC extortion payments.

2. Get the fees in line with the work you are now being forced to do because of scope creep ($800ish).

3. Keep the college degree requirement in place.  If you’re getting paid $800 per appraisal (as you should be) college graduates will gladly consider the profession.

You’re putting the cart before the horse with this argument.

Stick to you guns appraisers, things are achanging !

Fees are already at those level in many cases; AMCs typically charge that or more. Eliminate the AMC and the problem is solved. FWIW, my fees start at $425 for residential work, and that is for non-lending assignments with no UAD form, no 1004MC, no Cost Approach, etc.

Most of the appraisers I know have a 4-year degree, but went into appraising after failing at or not enjoying other careers. But that was at a time when there was a light at the end of the tunnel.

If the  minimum fee were $450 to $500 on a 1004, you would have plenty of college grads making the transition into appraising as trainees.

IMHO, the college degree requirement isn’t a big deal. Scanning the surveys, probably 2/3 to 70% of appraisers had it before it was a requirement. The issue is the appropriate compensation for the increase in licensing requirements. In many parts of the industry, after consideration of supply and demand factors, the compensation is appropriate (CG work, specialty work, etc.). It obviously is not at a reasonable level in other market segments that are currently oversupplied, and where many of the appraisers don’t meet the current licensing requirements. That will fix itself over time.