BPO

[judyinnewjersey]

Hello

Quick question..Have you ever done a BPO and if so what do you charge?

Judy in new jersey

 

[J Grant]

Twice, around 6 years ago, a total nightmare would never do one again. I charged the going rate at the time which was $45. The agents don't have to be USPAP compliant, we do. It's an appraisal if you sign as an appraiser.

If I were to do one now, would charge minimum of $150, and would still probably not be enough.

 

[TXTea]

My REALTOR friends down here charge +/-$150 for BPOs. And many of them are trying to get out of that service altogether because the lenders try to treat the BPO like an appraisal and force all sorts of revisions outside the scope of a BPO.

 

[Walter Kirk]

If you are a licensed or certified appraiser any BPO that you prepare will be considered an appraisal. Before you consider completing a BPO you must determine whether the assignment will comply with USPAP. After that consider how much it costs you to prepare a USPAP compliant report.

 

[glenn walker]

I am also a Broker and used to do them back in 2009 but not worth the time and energy .. JUST SAY NO : )

 

[Bobby Bucks]

I would charge the same fee as I would for an appraisal on the property and add to that figure a cost for the additional time converting the data into a BPO form.

 

[J Grant]

It's not about the assignment being USPAP compliant, it;s about the workfile (and any statements made by appraiser ) being USPAP compliant.

A BPO is like a drive by or desktop appraisal, but typically done online on a propietary form so you can't even use your own templates and drop downs (though software does often have BPO templates if client allows own software.

I hated doing them, did two and that was enough, would rather do appraisals.

 

[DWiley]

If you are a licensed or certified appraiser any BPO that you prepare will be considered an appraisal. .

That is not necessarily true. Varies by jurisdiction (state). Many appraisers hold credentials for both appraising and selling, and those who are dually licensed are free to operate under both licenses (just not at the same time). Anyone who is doing both should be VERY familiar with the applicable state laws.

As many point out, BPOs have changed a lot over the years, and now many lenders are just as picky on BPOs as they are on appraisals. They get sent back to the agent for the same kinds of things that appraisal reports get sent back to appraisers.

 

[Sid Holderly]

IN is one where an Appraiser/Broker can do either if you clearly act with the appropriate hat on. Brokers can also do appraisals in IN, tough they would not qualify for HUD FHA, loan resale work. They must follow USPAP in doing those reports. USPAP is rarely listed as a CE course for Brokers on the Real Estate CE sites. It works best to stick to the higher standard and not mix work and work files. Some brokers I know have quit doing BPO's for the same reason we complain about AMC's, too many uninformed requests for supporting info in the BPO. They want the same data as an appraisal for a BPO price.

 

[The Warrior Monk]

Personally, I wouldn't do a BPO if I was identifying myself as an appraiser. Brokers/salesperson's roles are very different from the appraiser's role, and an appraiser performing a Broker's Price Opinion can cause confusion as to what role the appraiser is representing.

As far as BPOs go, there is no standard. A BPO can be anything from an opinion written the back of a napkin to what is essentially the same thing as appraisers do with Fannie forms.