Discussion in 'General Appraisal Discussion' started by Nikolay Pavlov, Apr 15, 2008.
Can an appraiser do a BPO?
Does a BPO contain within it an opinion of value? .. Answer: Yes. ... When an appraiser arrives at an opinion of value is this a real estate appraisal? .. Answer: Yes.... Are real estate appraisers allowed to do real estate appraisals? .. Answer: Yes.
So, ... YES!
Call it a BPO, just make damn sure you address each standard and each rule in USPAP. Might get pretty lengthy.
In some states appraisers cannot do BPOs. I can't think of them off the top of my head. In other states, like Michigan, appraisers HAVE to do BPOs; a broker cannot do them. There are other states like this. If I can dig up info when I have time I'll give more details. I have to go watch the Tigers turn everything around and stomp the Twins :new_smile-l:
Can you do a BPO, Yes, Just be sure that you comply with USPAP and keep a complete file.
Should you do a BPO, NO!!!, BRO's are used instead of appraisals and they undermine the economic and professional status of appraisers.
Hmmmmm.......BPO's for $50 a pop sound fun! How else can one put their appraiser certification (after spending years working towards) to good use? You get to drive to subject....drive past all the comparables.....drive past all the listings...and two hours later get back to the office with more work to do. Minus gas, time, etc....you get to net about $6 bucks.
Probably a good idea to read up on the issue of Brokerage and Appraisal in USPAP Advisory Opinion 21. Know that price is a "fact" and and value is an opinion.
An appraiser needs to call a BPO a market analysis to help establish an asking price or some other type name rather than a Broker's Price Opinion. Calling the report a BPO would be misleading if you are not a broker.
I would shift into a cost accounting mode during the process and test the cost effectiveness.
Lastly consider the liability issue. Think of the poor prize fighter. A guy that pops another guy in the nose can be charged with misdemeanor assault. Put a prize fighter in a bar and when he pops a guy in the nose he is charged with felony assault because he is a trained fighter. An appraiser is a trained professional and therefore liability is higher.
I assume you ask this question relevant to the USPAP.
A broker may perform a BPO.
A licensed appraiser can not provide a BPO; any opinion of value by the licensed appraiser is correctly known as an "appraisal".
If the licensed appraiser is also a licensed broker...and if the client comes to this person in their role as a broker, in such an instance the broker may perform a BPO.
This also means if an appraiser pops a MBer or an UWer in the nose, as in theory they are also trained professionals, that this should be back to only a misdemeanor. If done while in a ring, it's a prize fight!
I had the same question in my last USPAP class and the senses was NO! The reason was because I'm not a "Broker", so it wouldn't be a Broker Price Opinion. See if they will accept it on a general form, but dont use the BPO form unless you are a licensed broker, it's misleading.