BPO - What a Realtor thinks about them

[Pamela Crowley (Florida)]

Earlier today, I was in a Realtor's office. The one I was talking to tells me a guy in his office is doing at least 50 BPOs a month for lenders and making lots of money.

My blood pressure started to soar. I asked if that Realtor had read the Realtor's Code of Ethics. Like regarding doing BPOs outside of for a potential listing? Like regarding the necessary addendums? Like the competency section?

His answer: "The Realtor's Code of Ethics is not the law. As long as he's not breaking the law, it doesn't matter."

I walked.... angry and above all, disgusted.

 

[Kevin Shannon]

Pamela,

I know of Realtors that do over 50 a week. He's right too, in most states no law is being broken.

It doesn't matter one iota what you or I think.

Kevin

 

[Pamela Crowley (Florida)]

I'm thinking Austin might be right. Why be a Certified Appraiser with all the laws and liability when you can make more being a licensed real estate agent doing BPOs with no laws or liability? What good is the Realtor's Code of Ethics????

WHY AM I TRYING SO HARD TO BE COMPETENT?

 

[Tim Hicks (Texas)]

Because, any person (or appraiser) has two choices: 1) The right way or 2) the easy way without conscience

It is as simple as that.

 

[larryhaskell]

Pamela:

Very good food for thought. For those of you who are realtors (I'm sorry), you have a viable option. It would seem though, that you would have to give up your appraiser's license to do a BPO as a realtor.

 

[Dale Smalley]

Why get mad. They are not appraisals.
Are you going to do them for the $40-$50. How can you make money at that level unless it leads to a possible listing.

 

[Pamela Crowley (Florida)]

Kevin's post above states some are doing 50 a week.

$2,500/week with no real research or liability - NO USPAP? Sounds nice!

The Realtor's Code of Ethics doesn't mention USPAP anymore.

 

[Mike Simpson]

Pamela-

I know a Broker claiming to do 100 or so of these a month. Knowing this individual the way I do I'd say it's probably closer to 20. This person claims to be making $50 a report & complains about the amount of work for the pay.

What disturbs me is I've read posters claiming BPO's are being utilized as data for AVM's. If true that is alarming indeed.

From your previous posts it sounds like you're probably working for a clientele who wouldn't bother w/BPO's--recognizes them for what they're worth ($50).

My business is very diversified--for the last two years I've turned away an enormous amount of work. Anyone in this business not already diversified? Why not get your license as an agent & do the same? It really isn't that difficult.

And as far as the Realtors Code of Ethics--DON'T EVEN GET ME STARTED--I could bore you for days--heck maybe even weeks after this long in the business.

Larry-

You don't have to give up your appraisal license the way the current laws appear to be written in most states. You do, however, want to: DISCLOSE, DISCLOSE, DISCLOSE. By the way I've never done a BPO.

 

[Joe Birrell (NY)]

They'd pimp their grandmothers if there was a nickle to be made. Don't even think about it, take a deep breathe and thank God you're not like them.

 

[liznindy]

I may be mistaken, but I recall from my USPAP that brokers who do appraisals must follow USPAP. Is a BPO which is not for listing purposes an appraisal?? An opinion of value is given, is it not??

Of course, if these brokers do not have an appraiser's license, what is the penalty if they are turned in for doing BPO's for non-listing purposes?