BPO's in Michigan

[hglenbetts]

Also keep in mind a realtor cannot do a BPO only a broker . . .

Mary,

A Realtor is a member of the National Association of Realtors. Both Sales Persons and Brokers can be Realtors.

Secondly, a sales person can do a BPO or an ERC report as long as it is in the course of securing a listing on that property, and they do not collect a fee for that service.

And yes, there are sales persons all over the place doing BPOs for banks where a listing is not involved, and they are collecting fees for that service.

The question is, does the State have the b@lls to do anything about it???

 

[Larboard]

And yes, there are sales persons all over the place doing BPOs for banks where a listing is not involved, and they are collecting fees for that service.

I guess those required ethics classes leave something to be desired.

 

[hglenbetts]

I guess those required ethics classes leave something to be desired.

Those are such a joke. The last one I took, half the class was comparing notes during the break, on the ways they justify violating the ethics standards.

 

[Kali the Boston Terrier]

See the thing is the economy makes enough incentive to break the law by realtors and agents. Why not do BPOs, they are not making any money selling houses right now...they have to eat. Frankly the problem is not the realtors, God knows we have enough skippies in the appraisal world, that we know this is not a salesagent/broker only phenomena. The problem is that it is not illegal for a bank to order one...its only illegal for the agent to complete one for compensation. No enforcement+bad economy-lack of houses selling=BPOs

Being a broker myself, I can tell you that agents and brokers are like the wild wild west, very little ethics, expertise, or any thing resembles professionalism...BPOs do not suprise me. But then again I am not losing any business to these things so I am not as angry as some are. Last month was a record amount of REO appraisals...

 

[hglenbetts]

.........Being a broker myself, I can tell you that agents and brokers are like the wild wild west, very little ethics, expertise, or any thing resembles professionalism...BPOs do not suprise me. But then again I am not losing any business to these things so I am not as angry as some are. Last month was a record amount of REO appraisals...

Brian, I first got my sales person's license in 1991, and have been a Broker since 1999. I've worked full time in the profession the entire time. I know that you have been a full time, hard working professional in the business too.

I just wanted to respond to your comments, by saying that there are many highly professional, highly ethical practitioners in the real estate profession, who deserve our respect.

The real problem in the lax licensing requirements, lack of required mentoring and Broker accountability. If the state wasn't so worried about an earnest money check being deposited 24 hours late, and truly held employing Brokers responsible for EVERY act of misconduct by their sales persons, maybe we wouldn't be looked at like the mud on the bottom of a used car sales man's shoes.

My little rant.. I look forward to meeting you, and the other Michigan guys, next week.

 

[hglenbetts]

Back on track

From the State Q & A section. my bolds

http://www.michigan.gov/dleg/0,1607,7-154-35299_35414_35475-183534--,00.html

As a licensed real estate salesperson, am I allowed to perform a "broker price opinion"?

Listed below is a quote from Article 26 of the Occupational Code. This article is specific to Real Estate Appraisers, and also has applications to real estate sales licensees:
Sec. 2601. As used in this article:
(a) "Appraisal" means an opinion, conclusion, or analysis relating to the value of real property but does not include any of the following:
(i) A market analysis performed by a person licensed under article 25 solely for the purpose of assisting a customer or potential customer in determining the potential sale, purchase, or listing price of real property or the rental rate of real property as long as a fee or any other valuable consideration is not charged for that analysis.
(ii) A market analysis of real property for a fee performed by a broker or associate broker licensed under article 25 which does not involve a federally related transaction if the market analysis is put in writing and it states in boldface print, "This is a market analysis, not an appraisal and was prepared by a licensed real estate broker or associate broker, not a licensed appraiser." Failure to do so results in the individual being subject to the penalties set forth in article 6.
A market analysis can be performed by real estate licensees, at no charge, as a regular part of their business to determine a sales price, a buyer's offering price or a rental fee. Brokers and Associate Brokers (but not Salespersons) can perform a price analysis for a fee as long as the required disclosure as shown in paragraph (ii) above is made.
If a real property valuation is required for purposes such as appealing taxable value, settling an estate if the real property will not be sold, settling a divorce if the real property will not be sold, obtaining a home equity loan, waiving private mortgage insurance (PMI), or generally testifying as to value in a court of law, than the valuation must be done by a licensed Real Estate Appraiser. If you have questions regarding Real Estate Appraiser licensing requirements, information is available at their licensing website

 

[Michigan CG]

there are many highly professional, highly ethical practitioners in the real estate profession

Glen, out of the 11 in that "ethics" class" there were maybe three.

 

[hglenbetts]

Glen, out of the 11 in that "ethics" class" there were maybe three.

25% . Yep, sounds may be high. It's far to easy for ANYONE to get a license and then find a Broker to give them a desk. No manditory improvement education. RE con ed is a joke. A 6 hour, $45.00 class each year with no requirement of testing. No ongoing proof of compatency.

Actually, the % of highly professional, highly ethical Realtors in today's market may be more like 15%.

What a shame

 

[Mary Tiernan]

So, you two who are 'real estate sales persons or brokers' - (and let me explain that I am an appraiser, perhaps realtEr would be a better term so as not to broach upon the trademarked realtOr term?


what do you think of half of your license fees being diverted to a fund for investigating mortgage fraud?

are you even aware that this is now occurring?

what do you hope the mortgage fraud fund will accomplish?

I'm betting it just grows and grows, untouched, until it is transferred to the general fund.

 

[hglenbetts]

So, you two who are 'real estate sales persons or brokers' ................what do you hope the mortgage fraud fund will accomplish?

I'm betting it just grows and grows, untouched, until it is transferred to the general fund.

YEP. SOUNDS ABOUT RIGHT FOR GOV. GRANHOLM