BPO's

[Doug Wegener]

http://webcache.googleusercontent.c...d=1&hl=en&ct=clnk&gl=us&source=www.google.com

"Can licensees perform Broker Price Opinions for a fee?
"Broker Price Opinion" is not a legally defined term, as are "appraisal" and "comparative market analysis." When a fee is charged for a BPO, it will either be considered an appraisal or a CMA. If it is determined to be a CMA (i.e., provided for the purpose of determining the asking/offering price for a property for the seller or buyer), then it falls within the scope of permitted activity for a real estate licensee. If, however, the BPO is determined to be other than a CMA, it will qualify as an appraisal, which requires an appraisal license to perform.

To avoid confusion, the term BPO should not be used for any written expression of value for a fee. "Appraisal" and "comparative market analysis" are the terms that should be employed, depending on the purpose and scope of the valuation."

This is Pennsylvania. Does this means the BPO mills are not operating in Pennsylvania? Or does it mean that Pennsylvania agents are routinely violating the law with no enforcement from the state authorities?

What about other states? Its clear to me that agents are routinely engaging in appraisal activity for a fee ( with no listing prospect). Is this illegal in your state? Is there any enforcement?

 

[CANative]

From OREA website, FAQ's "Licensing"

Question: How can I gain acceptable experience as an unlicensed appraiser?

Answer: Acceptable experience may be accumulated as an unlicensed appraiser in any of the following ways:

1. By providing "significant professional assistance" to another appraiser and having the duties you performed identified in the report. If at least 75% of the professional appraisal work is performed by the unlicensed person and the appraisal conforms to the Uniform Standards of Professional Appraisal Practice (USPAP), this experience would qualify under Category 10 (Assistance in the Preparation of Appraisals) for up to a maximum of 400 hours of credit;

2. By performing the entire appraisal process under the direct supervision of a California certified appraiser. The final conclusion to value is made by and the appraisal is signed by the licensed appraiser, with you and the duties you performed identified in the report. If the unlicensed person performs all appraisal methods customarily used for a particular property type and the appraisal conforms to USPAP, this experience would qualify under Category 1 (Fee and Staff Appraisal) with an unlimited number of hours; and

3. By the unlicensed person completing appraisals him or herself in non-federally related transactions. In California, any appraisal completed for a federally related transaction requires a licensed appraiser. However, work performed for attorneys, private individuals, etc., are generally not federally related transactions and can be performed by anyone. If the appraisal conforms to USPAP, this experience would qualify under Category 1 (Fee and Staff Appraisal) with an unlimited number of hours.

 

[Pittsburgh Pete]

Not aware that they are being performed in the great Commonwealth of PA but it wouldn't surprise me. Did have an AMC contact us about performing BPOs a couple of years back--informed them that except for the limited exceptions (i.e. listing or establishing list price) they could not be performed in PA. Don't think that stopped them, however.

 

[CANative]

It sounds like there is no such thing as a BPO in PA. It's either an appraisal (done by an appraiser) or a CMA (done by a real estate agent). The appraiser can charge a fee (because it's an appraisal) the real estate agent cannot charge a fee except as part of a general services fee provided as a buying or listing agent.

It is important, though, to understand that a CMA is limited in scope to establishing the asking or offering price for a specific property and for a specific client or customer. Any activity that attempts to valuate a property for a purpose outside of this limited scope would not fall under the definition of a CMA and would require a Certified Appraiser license to perform.

PA rocks!

 

[Doug Wegener]

California

From OREA website, FAQ's "Licensing"

What does the department of real estate say in California about performing BPO's for a fee?


Are these agents being paid thru their broker or are they being paid directly in violation of the law?

Somewhere I saw it posted that only Brokers could do BPO's in California.Clearly, agents are doing them also.

 

[Doug Wegener]

Federally insured transaction

From OREA website, FAQ's "Licensing"

Ok. If FNMA or a federally insured bank hires an agent to perform a BPO to establish an acceptable value for a short sale listing of another agent, is the agent doing an appraisal or a BPO?

 

[dobie]

Not aware that they are being performed in the great Commonwealth of PA but it wouldn't surprise me. Did have an AMC contact us about performing BPOs a couple of years back--informed them that except for the limited exceptions (i.e. listing or establishing list price) they could not be performed in PA. Don't think that stopped them, however.

Yes but did recently see a BPO performed by a PA realtor on a NJ property and no they were not right across the border.

 

[Jim Shoe]

It is my understanding that an appraiser must comply with USPAP at all times. If an APPRAISER gives an opinion of value, they have performed an appraisal. Yes, even giving a neighbor an opinion over the back fence. If an appraiser performs an appraisal, it must comply with USPAP. So yes, an appraisal can perform a BPO; however, it must comform with USPAP... contain Appraiser's Certifications... etc. If you want to add all this to a BPO and comply with all USPAP requirements... for $50, feel free to do so.

 

[AngelEyes359]

I'm not saying it's right or that I agree with it but could not a clever and optimistic BPO provider just write the following statement on their BPO: "The intended purpose for this BPO is to............ a l*st*ng."? Problem solved?

 

[CANative]

http://www.dre.ca.gov/pdf_docs/relaw/regs2011.pdf

Here's a link to the Commissioners Regulations. I don't see anything mentioned. I'm not even sure the issue is relevant or applicable because it's covered elsewhere.