BPO -vs- Appraisal

[Richard Carlsen]

It is not what hat you wear but what hat the client thinks you are wearing that matters. If the client hires you to do a BPO because you are a licensed appraiser, you have to be USPAP compliant. It is the perception that dictates which license applies and not the report form.

If you don't want any liability, it is best not to try to wear two hats because that big gator will certainly come back to bite you in the behind just when you think everything is going just fine.

 

[xmtpedprl]

I'd like to hear any opinions on Richard's comment regarding the client's interpretation (understanding) as to what 'hat' an appraiser is wearing when doing a BPO, which always ends with an opinion of value.

Richard, insofar as I am aware, I actually only have one 'hat,' so whether or not *they* have decided which one it may be at the end of the day, *I* have but one to offer, no?

Dave...

 

[wickedness1]

I'd like to hear any opinions on Richard's comment regarding the client's interpretation (understanding) as to what 'hat' an appraiser is wearing when doing a BPO, which always ends with an opinion of value.

Richard, insofar as I am aware, I actually only have one 'hat,' so whether or not *they* have decided which one it may be at the end of the day, *I* have but one to offer, no?

Dave...

It appears that your taking it out of context. A BPO done by a realtor that is also an appraiser. The hat is that of a realtor, however a client has to know it is a realtor hat during the assignment at all times. That is what might get an appraiser/realtor into trouble when doing BPO's..I think was his point..USPAP compliant

 

[Hamlet]

If you have two licenses, then you must be sure to keep then separate and not misrepresent yourself to your client. If you are acting as a licensed real estate agent, then that is how your client must perceive your services, not as a licensed appraiser. AO21 discusses this issue.

 

[Richard Carlsen]

Richard, insofar as I am aware, I actually only have one 'hat,' so whether or not *they* have decided which one it may be at the end of the day, *I* have but one to offer, no?

Sorry Dave. I must have misunderstood you. I guess I surmised from your comments that you wear the hat of a real estate agent to do BPO's and the hat of an appraiser to do appraisals.

My point was that regardless of which hat you (or anyone for that matter) may think they are wearing, it is the hat that the client perceives you as wearing that dictates under what rules you have to operate. An appraiser, operating as a real estate broker but known by the client to be an appraiser, may think that he only has to follow the rules of real estate brokers while in fact, because the client sees him as an appraiser, he is obligated to follow USPAP regardless of what the order calls for. It is the clients expectation that decides which hat you are wearing and not which you think will be adequate to do the job.