Actual BPO form + instructions

[Jamice4u2]

BPO's are the problem. Without BPO's bank would be force to pay appraisers. If an appraiser got two orders one for $350 and another for $200 which assignment would the appraiser do?

But if their are only $200.00 the appraiser has no option but either to do the appraisal or refuse the work. There is no positive alternative in this situation. I believe the problem is that during the boom many supervising appraisers did not train their trainee well so.

I here plenty of stories from trainees that who mention that they do inspections alone. This crop of trainees who became licensed and Certified appraisers never got the necessary training needs to analysis the market. I have heard stories from other appraisers that some appraisers fraudulently signed appraisers logs who did not even do any appraisals and those appraisers got licensed.

All banks want is a document which looks like an appraisal to put in the file so they can have the appearance of following government regulations. When they get audited then they get a real appraisal.

 

[Meandering]

Certified appraisers never got the necessary training needs to analysis the market.

Let's not mention the training sales people get.

These forms are almost never produced as reports. They are AVM verifiers with pictures. Try and find a completed one that has been presented to anyone as a finished report. Nope, the AVM adds all the supporting information

 

[OSU Beavers]

Wow looks like a FNMA 2065 Qualitative Appraisal Report form.

List Functional and External Obsolescence? I'd say that is over the heads of 95% of Realtors. BPOs = appraisals completed by unqualified and unlicensed Realtors.

 

[RSW]

Hey Anon......(and others)...
If you don't know why this 2 page form does not comply with USPAP Std 2, then you need to drag out your copy of USPAP and read it. You do have one I hope.

Others...
This form has a place for adjustments.

Yes, I've heard that some BPO's are being done for very minimal dollars. But it would be nice to see an example of a 'real' one that non-appraisers use who are only earning a pittance. Those may be less extensive than this one...or they could be similar. At any rate, if non-appraisers are completing these for just a few bucks to the extent that this form requires, they certainly don't know what they are worth.

Remember...BPO's are completed with the expectation that a future listing will be obtained, which can account for the minimal fee paid for these. That means the info on the BPO may be compromised by the expectation of future earnings on that property.
The whole point of doing an appraisal with a licensed appraiser is to, hopefully, keep bias and influence out of the process. BPO's cannot do that reliably.

Sounds like the old "Comp Check" days!

 

[Dale Smalley]

"BPOs = appraisals completed by unqualified and unlicensed Realtors."

No BPOs are Fake appraisals designed to look like an appraisal.

 

[DMZwerg]

"BPOs = appraisals completed by unqualified and unlicensed Realtors."

No BPOs are Fake appraisals designed to look like an appraisal.

BPOs are now being done on check-box forms that resemble a summary appraisal form without any scope of work or other assertions as to the competency of the opinion of value or towards the competency of the one performing the valuation.


In other words, a BPO provides no assertion the valuation is fair or honest, let alone performed under any professional standards.

 

[Don Clark]

Appraisers……

If you have never seen the type of BPO reports non-appraisers are doing that establish the value on certain real estate properties, please open, read, and save the attached PDF’s to your computer. Notice how similar to a 1004 + REO Addendum this report is.

This company’s instructions say this is a CMA, but the actual form references BPO (top left, each page). This form is a technical appraisal report, however, appraisers are normally not doing these. Or if appraisers are doing these just as presented, they are not in compliance with certain reporting requirements in USPAP Std. 2.

Many state laws say that BPO’s can be done to assist the seller in marketing their property via legitimate listing in a local MLS. But many of those laws also say that BPO’s cannot be used to help the Lender understand property value. Yet laws like those are broken daily with this form.

People who do these or similar CMA/BPO reports are doing them for very minimal fees….in some cases for less than $100.

Your employment for providing legitimate property value reporting has been compromised by this activity. Millions and potentially billions are being spent annually that appraisers never see. If this concerns you, use these PDF’s and a copy of your state law to urge your state legislators, US Representatives and US Senators to force lenders to comply with the law….or else ask that new legislation be drafted to guarantee real property valuation reporting be done by appraisers who are trained to do so, independently of other influencing factors.

Dave,

Don't use them as I do not do BPO's but most appraisal software providers have BPO forms in the forms list.

 

[ValueGirl]

How to influence a BPO video I found online

Wow, this is a little disturbing. A video by a real estate investor explaining how investors might be able to influence the outcome of a BPO in their favor.

http://www.kewego.com/video/iLyROoafIOsR.html