Commercial Real Estate Appraiser - Salary Progression
My first time posting on Reddit - my apologies if this post is in the wrong place. Any ideas on salary progression for a commercial real estate appraiser in Canada? Started off at 40k, curious if salaries typically remain low for the first few years. Thanks!
[{"id": "ipr95ls", "text": "In the US\u2026 \n\nIn my state there\u2019s 3 levels of licensure \n\nThe licensed is $40-60k for 2,000 hours of work in one year. \n\nCertified Residential I\u2019m not sure but I\u2019m guessing $55-$75k for 2,000 hours in a year \n\nCertified general -  $80-$150k+\n\nSo you have to obtain higher licenses to get more money. You can always strike out on your own and set your own fees", "replies": [], "depth": 1}, {"id": "ipregt3", "text": "I work public sector in a HCOLA and we start our commercial appraisers at about $57k unlicensed. $70k+ within 3-5 years. It\u2019s been hard finding qualified applicants recently at that salary, btw.", "replies": [], "depth": 1}, {"id": "iprkyju", "text": "Salary? Typically appraisers are paid a percentage of fees.", "replies": [{"id": "ipsasd0", "text": "The company they work for is, and they are paid a wage.", "replies": [{"id": "ipsyctm", "text": "Maybe that's a Canada vs US thing. All the big commerical firms in the US pay a fee split. Most have some kind of \"base,\" they will pay, but most of the time you're well above that on your commissions.", "replies": [], "depth": 3}], "depth": 2}, {"id": "ipsikne", "text": "Yeah, we worked on splits doing commercial appraisal.", "replies": [], "depth": 2}, {"id": "ipsmgeh", "text": "I believe fee appraisers are much more common in the industry- I\u2019m on salary, no fee split.", "replies": [], "depth": 2}], "depth": 1}, {"id": "iprlt35", "text": "Lot of variables here but you should expect to double that within three years. We have plenty of analysts doing six figures.", "replies": [{"id": "ipvut7a", "text": "On some investments you may see better returns in a short period of time, these don't look bad", "replies": [{"id": "ipvvmfy", "text": "What are you taking about? No one is talking about investments in this post.", "replies": [{"id": "ipw36c9", "text": "Investing does not necessarily mean investing", "replies": [{"id": "ipw44za", "text": "Utter drivel. This is the comment equivalent of littering.", "replies": [{"id": "ipwaca7", "text": "Your cognition is like that of a 13-year-old child", "replies": [], "depth": 6}], "depth": 5}], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "ipsnmxq", "text": "What the f***???\n\nI thought CRE analyst salaries started at $70K, not $40K.", "replies": [{"id": "ipsr169", "text": "Analysts and appraisers are different?", "replies": [{"id": "ipsr268", "text": "Would you look at that, all of the words in your comment are in alphabetical order.\n\nI have checked 1,060,851,160 comments, and only 209,490 of them were in alphabetical order.", "replies": [], "depth": 3}, {"id": "iq6xh1v", "text": "Maybe I\u2019m dumb, but what\u2019s the difference between an appraiser and someone who works at a JLL/CBRE or KPMG/EY valuations and advisory group? Analysts there start around 70-80k.. and will typically go for an MAI after a few years.", "replies": [{"id": "iq6zk2q", "text": "The short story\n\nAppraisers assign a valuation on the property during the transaction process to be used for consideration in under writing loaned from FDIC lenders. They licensed and credentialed to do this work. \n\nCRE analysts work for buyers and looks at a market and picks deals/assets that would be good for a certain portfolio and mitigations risks across a portfolio by also deciding when to sell and to have diverse assets.  They can not assign a legally binding valuation for a mortgage. \n\nThe long story is below, \n\n\nWhen it comes to CRE specifically, An appraiser is an independent 3rd party generally hired for a fee, by a federally insured (FDIC) lenders (banks generally) who are interested in issuing a mortgage to a pre approved client. The professional must follow a ethical process and be Competent in assessing the value of the property/asset in todays market. The bank can use that information to see if the asset value holds up to the underwriting requirements for the transaction.  \n\nA CRE analyst is employed by the buyer of commercial real estate. Real estate analysts manage the real estate investments of organizations that have significant property holdings. To do so, they closely monitor changes in the market and create models to predict upcoming situations based on market trends. \n\nAppraisers Assign a valuation during a transaction and works for themselves not the bank or purchaser, they give an unbiased opinion of value used by lender to qualify tor a mortgage or be rejected for on. They assess what the value of the property is. \n\nAnalysts track the market and pick assets that would be a good investment and strategies on to operate the asset in your portfolio environment. They assess if it\u2019s a good investment to pursue for the firm they work for, \n\nThey find the deals to pursue, but to conduct the transaction, you need an appraise", "replies": [{"id": "iq7092z", "text": "Thanks, super interesting! Now that I think about it, those groups are a bit more focused on due diligence for transactions rather than appraisal", "replies": [{"id": "iq9otth", "text": "Correct, and those groups can not be appraisers. And if they offer appraisal services, they can not utilize their own company for a valuation for a mortgage that they will hold. It must be 3rd party independent party who provides the valuation so the number can\u2019t be manipulated to meet an employer\u2019s objectives or A bank\u2019s risk threshold. Otherwise it\u2019s not a true market appraisal and the manipulation is not ethical, and eventually skews the entire market like in the 1980\u2019s recession which was caused by appraisers not giving accurate numbers and catering to banks and buyers For kickbacks and the bubble popped. Appraisers were not required to be licensed until 1990 and everyone just kind of did whatever they wanted with no training before then. Wild.", "replies": [], "depth": 6}, {"id": "iq9owgy", "text": "What is MAI?", "replies": [], "depth": 6}, {"id": "iqarpto", "text": "One thing to note is that the big national brokerages also have in house appraisal departments, who do third party appraisals as well. Those would typically be the job postings you\u2019d see for the Valuation and Advisory groups within CBRE/JLL/C&amp;W. While they don\u2019t typically work on deals that the brokers are working on, they are available for users of appraisal services to hire as third party appraisers, and generally have the benefit of easier relationships with the brokers within their companies. \n\nTypically lenders avoid hiring appraisers from the same brokerage firm that is involved in the transaction, as it can appear to be a conflict of interest, but there\u2019s plenty of work out there to avoid working on deals your own guys are selling.", "replies": [], "depth": 6}], "depth": 5}], "depth": 4}], "depth": 3}], "depth": 2}], "depth": 1}, {"id": "ipstsmf", "text": "In the US it\u2019s typically 45-50k for first year, then go to fee split.  75-100k for a few years.  Most CG\u2019s are 150-250k thereafter.", "replies": [], "depth": 1}]