I was recently asked by a newbie in real estate appraisal how much I think a new real estate appraiser should charge.
Many new appraisers and trainees want to get off on the right foot and explore options for maximizing their potential right off the bat. My hat goes off to those people who are not only brave enough to get into the real estate appraisal profession, but are willing to do it differently than it has previously been done.
As a new appraiser, how do you know what fee schedules are customary and reasonable? You don’t want to ask too much and not get any work, but you also don’t want to ask too little and undervalue yourself. You definitely want to reach a happy medium.
First, I would recommend visiting this page:
This is a great place to start, but remember that you don’t need to do what everybody else does. Find out how much YOU are worth. As a new real estate appraisal, you do have limited experience. You may need to lower your sights a bit and then change your fees once you’ve been in the profession for a while.
Find out how much you are worth per hour, and calculate how much time it takes you to do a standard appraisal. For example, if you find that you’re worth $75 per hour and it takes you x amount of hours, calculate that. Make sure that this is a reasonable amount.
You can also check out this page:
It is public information and is divided by state. It is perhaps 20%-30% higher than the standard going rate for AMCs in your area, generally.
AMC work is going to be your low-hanging fruit. It’s easy to pick up, to an extent. As a new appraiser, an AMC may not believe you have enough experience to do appraisal work for them. Some AMCs will simply not take a new appraiser.
With this in mind, I recommend starting as soon as possible to build up your non-lender business clientele. Reach out to Realtors, homeowners, attorneys, and any other relevant parties who might use appraisal valuation services to start establishing yourself.
Find something new and creative to bring to the table that distinguishes you from your peers.
I love to help and answer questions, so if you have any questions about real estate appraisal, feel free to shoot me a message and ask!
For more information on this subject, please download and listen to The Appraiser Coach Podcast