Appraiser/real estate agents killing the appraisal market.

[Ray Miller]

Appraiser/real estate agents killing the appraisal market. Today I got a look at a sign in sheet for the past 8 weeks at a resort where a lot of BPOs are being ordered. As I looked at the sign in sheets for the units that I have received BPO orders on I notice that a couple of appraisers/real estate agents in the area have sign in to do the BPO. They sign is as an appraiser, but give the reason for being there to do a BPO. Thses are the orders that are being grap up with a minute or two of being sent. Glad I am doing the auction and REO preservation work on these units. It pays better.

Haven’t they got a clue they are killing the Appraisal business or don’t they give a hoot? It $45 in thier pocket.

 

[Bama Bayou]

I don't see how they are killing the appraisal market. If the appraiser/agent does not do the BPOs the will just hire non appraiser agents like they usually do.

But I really don't see how anyone can do these for $45 and make a living.

 

[Mark K]

Maybe that's all the work available and they're trying to feed their family or make their house payment?

How about appraisers that are taking the work from auctioneers? You just said that you're wearing three hats right now.

I guess everyone's trying to make ends meet these days.

 

[Ray Miller]

Guess what I am getting at is I don't get my fees to get business. Why would I want to do all the work required for a BPO at $45 when as an appraiser I should be getting $400?

Appraisal is becoming like auction work, part time for the most part. Most auctioneers I know hold appraiser license, real estate license and auctioneer license.

It just the thought of cutting your own throat with low fees.

 

[stefan olafson]

Ray,

Is it legal for real estate agents to provide an opinion of value on real property in Wisconsin?

In North Dakota if the value is under the Deminimis value, anyone can provide an opinion of value except me! I've been specifically barred by law from doing any type of valuation business in North Dakota. Of all the citizens in North Dakota I'm the only one who can't work.

Crazy, Right???

 

[Ray Miller]

Ray,

Is it legal for real estate agents to provide an opinion of value on real property in Wisconsin?

In North Dakota if the value is under the Deminimis value, anyone can provide an opinion of value except me! I've been specifically barred by law from doing any type of valuation business in North Dakota. Of all the citizens in North Dakota I'm the only one who can't work.

Crazy, Right???

Yes they can provide a BPO.

My opinion of the appraisals laws is well I have a barn yard full of it. Read my new post in a bit.

 

[Richard Carlsen]

Guess what I am getting at is I don't get my fees to get business. Why would I want to do all the work required for a BPO at $45 when as an appraiser I should be getting $400?

Ray
The reason they are doing a $45 BPO is because the client does not need a $400 appraisal. And they do not have to comply with USPAP, look up census tract numbers, flood maps, listing histories, sales histories, determine H&BU, calculate the Cost Approach even though it cannot be used in the opinion of value, provide a sketch and map as well as defining the SOW, commenting on everything form the value of the houses in the neighborhood to documenting all of your sources and all of the crap that one finds on a 1004.

If a client wanted the same thing as a BPO but done by a licensed appraiser, I would do it for $100 as long as the assignment conditions would make all of the USPAP items that do not apply go away. Think about it. If you just had to do a SDA with a minimum of 3 comps and no interior inspection with assumptions that all county and MLS data is valid, would you not consider doing one for $100? I certainly would. And I guarantee you that my opinion of value would be more reflective of the market value than most real estate agents.

 

[Pete Humphrey]

Richard - you are right on! Maybe we should all be doing $100 BPO's! The problem is when they can get them from an agent for $45, they figure they're saving $55! I was doing a bunch of appraisals for a while for BPO.com. Now it's pretty much gone to zero, because the agents are providing bpos at $45-50 vs. my $300-350. In fact they accidentally emailed me a request the other day. I called them and said, "you know, I don't do appraisals for fifty bucks" and they apologized saying they meant to send it to an re agent with the same first name! Maybe I should go get my re agent license! I'd probably make more money than I am now!

 

[Terrel L. Shields]

In North Dakota if the value is under the Deminimis value, anyone can provide an opinion of value except me! I've been specifically barred by law from doing any type of valuation business in North Dakota. Of all the citizens in North Dakota I'm the only one who can't work.

Crazy, Right???

Unfortunately, that is true in a lot of states...we cannot because we have to comply with USPAP. I absolutely hate that crap lying BS put out by everyone from AI to TAF that "oh, appraisers can do these blah blah blah..." That was what limited appraisals and departure was supposed to allow. There is NO WAY anyone can do a USPAP compliant report that can compete with an unvetted scribbled out valuation done on toliet paper.. You can't period. It's stupid of TAF to float the idea that appraiser can compete with BPOs by some mickey mouse sleight of hand that does not exist.

 

[Gregory Beck]

I don't see how they are killing the appraisal market. If the appraiser/agent does not do the BPOs the will just hire non appraiser agents like they usually do.

But I really don't see how anyone can do these for $45 and make a living.

They are not doing it for the $45 they do it to get the listing from the bank so they can sell it as a bank owned property and make the big commission.