Most sources online estimate that appraisers make an average of $25 an hour. While this used to be accurate for me when I first started out as an appraiser, I have applied principles of prosperity to my business that have allowed me to make much more per hour. Much of what I have learned that has allowed me to be a better appraiser, I didn’t learn from other appraisers. Rather, I studied other successful businesses and business owners and adapted some of their key methods and principles for my own business.
Now, you may scoff when I say that I make $100 an hour, but I have had the opportunity to develop and mold a business model that helps me be more successful in my work. Today, I would like to share a little of this model so that you can begin molding your own company and making more money.
There are different tiers or levels of work that we do as appraisers. Tier 1 would be considered basic data entry, Tier 2 would be more in-depth secretarial work, and Tier 3 would consist of the actual valuation component of appraising. Some appraisers prefer to do every task related to their appraisals rather than delegating, but I have found my business is much more effective when I delegate the Tier 1 and 2 tasks, so that I can focus on the Tier 3 tasks.
When you go to the doctor, the doctor doesn’t do the Tier 1 and 2 tasks such as checking you in, doing your initial workup, and sending you the bill. Rather, the doctor spends a short amount of time with each patient doing the Tier 3 work, while their staff completes the Tier 1 and 2 tasks. This allows the doctor to use his or her specialty to help more people.
As appraisers, we are valuation experts. I would strongly encourage you to spend more time focusing on your specialty and leaving the Tier 1 and 2 tasks to individuals you hire. I think you will be surprised as your volume and quality of work improves, and you will begin to make more money per hour.
For more information on this subject, please download and listen to The Appraiser Coach Podcast Episode: 318 – Setting Up Appraisal Office Systems