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  #1  
Old 12-04-2003, 07:22 PM
Doug in NC's Avatar
Doug in NC Doug in NC is offline
 
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Just wondering if any appraiser here has ever done a BPO? How complicated (or simple) are they to do? My guess is that an appraiser would have a tough time doing them since we are held to much higher standards for valuations than realtors are.
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  #2  
Old 12-05-2003, 06:34 AM
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Richard Carlsen Richard Carlsen is offline
 
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Location: Tip of the Mitt: Northern Michigan
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I've never done a BPO but I've just thought of an interesting question:

Since I hold both a Brokers license and an Appraisal license, would it be legal for me to do a BPO under my Brokers license as long as I conform to the Michigan regulations regarding what Brokers are permitted to do and not be held to the standards of an Appraiser?

Ummmmmmmm.......Maybe I can get into some of those big BPO bucks out there.
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  #3  
Old 12-05-2003, 06:44 AM
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TEL2002 TEL2002 is offline
 
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Richard,
If push ever came to shove in a court room, I bet you would be held to the higher the two standards.
I bet this issue would make an interesting legal battle.
  #4  
Old 12-05-2003, 07:07 AM
Rich Heyn Rich Heyn is offline
 
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Richard,

An appraiser who is also licensed as a broker must look at both State regulations and USPAP.

USPAP essentially wants to know which hat you are wearing at the time you are engaged. More appropriately, which hat does your client perceive you to wear? Are you acting as an appraiser or are you acting as a broker?

Let’s say you have a company called Tip O’ the Mitt Realty and someone walks in the door and asks you to list their property. You have no reason to believe that you are being approached as anything other than a broker. You are wearing the “B” (broker) hat and USPAP does not apply unless individual state regulations require it.

But suppose you are approached by someone who says “Richard, I have an unusual property that I need listed. I know you are an appraiser as well as a broker and are probably better equipped than most brokers to establish a reasonable listing price.” USPAP applies because they see you as wearing the “A” hat. (The “A” stands for appraiser, not for what Judy thinks of you sometime.)

Now, it may be possible for you to “take off” the “A” hat. If you explain to the individual that if you list the property while wearing both hats, you may have to do a more detailed analysis and it will cost more, etc. If the client agrees you may, in some cases, be able to remove the “A” hat. It can be a little tricky here, and you may just be better off erring on the side of caution and keeping on both hats.

I found out a few months ago when teaching the Scope of Work seminar in Fargo that some states, ND being one of them, don’t let you take off the “A” hat. I was told that if you were licensed as both broker and appraiser, your BPO’s and CMA’s had to be USPAP compliant.

Much snow yet?

Rich Heyn
  #5  
Old 12-05-2003, 07:21 AM
Don Jones Don Jones is offline
 
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Rich,

Do you make it to St. Louis or Memphis with your Scope of Work Seminar? If not, wish you would consider having one in either of those locations.

Got my first computer and appraisal software from you back about 1985 or 1986. Always have good memories of you. You put me on the cutting edge of technology back then.

Best Regards !
  #6  
Old 12-05-2003, 07:29 AM
Rich Heyn Rich Heyn is offline
 
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Don,

My friend Sheryl Andrus, who developed the Scope seminar, will be presenting it in Memphis on February 13th. She is an excellent instructor and I believe you will enjoy the seminar. You can get on the AI website to get contact information.

If I remember, you're down by Caruthersville, yes? Are you the one where I flew the Mooney into a little crop-duster patch by your house?

Rich
  #7  
Old 12-05-2003, 07:33 AM
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Don Clark Don Clark is offline
 
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B) Prior to licensing I did many BPO's. If done right they are not as easy as it may sound. My wife and I had the account for Standard Federal Savings Bank for many years. We not only did a BPO but we also hired contractors to do work, and looked out for winterizing the properties or seeing that they were winterized and grass was cut, etc. The only compensation was listing and possibly selling the property. Made lot's of commish doing that. The BPO's were comprehensive enough to be counted, to a degree, for appraisal experience along with all the other appraisals we had actually done since 1984.

My suggestion would be to do them they same way you would do a restricted use report.

I agree with rich, the clients perception of what role you play in all this is crucial. Since this is much more than a CMA or listing scenario, I suggest strict adherence to USPAP.

Don
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  #8  
Old 12-05-2003, 07:35 AM
Don Jones Don Jones is offline
 
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Rich,

Caruthersville is correct; however, the airport albiet small had a paved runway. You were flying the Mooney alright. The cropduster there was a friend of mine, we went to high school together. He was killed in a plane crash a few years back flying a Russian Yak (Yak ?, I believe it was).

Thanks for the information on the seminar, I will make plans to attend.


Thanks !!
  #9  
Old 12-05-2003, 09:13 AM
Mountain Man Mountain Man is offline
 
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I agree with Don. Back in my sales daze, I did many. I think an appraisal is easier than a BPO. You have got to describe the neighborhood, market, sales, listings, etc. A BPO is longer than a URAR, but a wee bit shorter than an ERC.
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  #10  
Old 12-05-2003, 01:37 PM
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Rich - I understand the hat theory, but I would hate to be in court explaining "yes, I was approached because I am an appraiser but I took that hat off and did the work as a broker." Not something I would want to deal with.

I could see a good lawyer poking all sorts of holes in that theory. Basically, no matter how you are approached, it seems like it would be very hard to prove that the fact you are an appraiser didn't play into your hiring. And, if it does play in, then you have to be USPAP compliant. At least that is my understanding. I am sure you are more knowledgeable about this, but for my own comfort level, I couldn't accept this type of assignment without making the report USPAP compliant. This is still a very grey area.
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