Broker Price Opinion (BPO)

[hyr2000]

Hello Ladies and Gentlemen:

I am Licensed in NJ as an appraiser. I was contacted by a MGT company that I have been doing work for asking if I would do some BPOs. The fees seem really poor and the first 2 deals they want to send are commercial. I was also told they require an interior inspection. Has anyone done these deals? The form seems fairly simple, but the comparable part of the report seems like it could be a ton of work. Can I do these as an appraiser without violating USPAP?

Thank you!

 

[JRS at OBX]

Hello Ladies and Gentlemen:

I am Licensed in NJ as an appraiser. I was contacted by a MGT company that I have been doing work for asking if I would do some BPOs. The fees seem really poor and the first 2 deals they want to send are commercial. I was also told they require an interior inspection. Has anyone done these deals? The form seems fairly simple, but the comparable part of the report seems like it could be a ton of work. Can I do these as an appraiser without violating USPAP?

Thank you!

So you think giving an opinion of value can be anything other than an appraisal? You are a licensed appraiser, your opinions of value are appraisals and better be USPAP compliant. The NJ Appraisal Board isn't going to care that you call it a BPO.

 

[Truett Neathery]

BPO Ii

So you think giving an opinion of value can be anything other than an appraisal? You are a licensed appraiser, your opinions of value are appraisals and better be USPAP compliant. The NJ Appraisal Board isn't going to care that you call it a BPO.

SO! If one is an appraiser AND a Real-a-tor, can one do a BPO? What disclosures should be done?

TN

 

[Pete Pasco WA]

Don't do it. Do a search and you'll see a bunch of threads addressing this.

 

[Michigan CG]

The fees seem really poor and the first 2 deals they want to send are commercial.

Nice. What's next?

 

[Lawrence R.]

Hello Ladies and Gentlemen:

I am Licensed in NJ as an appraiser. I was contacted by a MGT company that I have been doing work for asking if I would do some BPOs. The fees seem really poor and the first 2 deals they want to send are commercial. I was also told they require an interior inspection. Has anyone done these deals? The form seems fairly simple, but the comparable part of the report seems like it could be a ton of work. Can I do these as an appraiser without violating USPAP?

Thank you!

Not just no, but hell no.

 

[JRS at OBX]

SO! If one is an appraiser AND a Real-a-tor, can one do a BPO? What disclosures should be done?

TN

Then you should make darn sure your client knows which hat you are wearing. Are you doing a BPO for a client for brokerage purposes or are you giving an opinion of value? That can be a sticky situation. If youa re getting the BPO request because you are an appraiser, you better make sure everything is above board.

 

[Truett Neathery]

coming your way soon:

Nice. What's next?

A commercial appraiser told me he was contacted to do a comp search for...........A BAR!!
That's what is next.

So many residential loan originators have tried to go elsewhere for business (like BizOp financing) and commercial loan origination because it's so lucrative. But , still, no comp searches either. How about calling their local Realtor for a BPO?

Now they tell me commercial lending is off 50% from this month last year.

SBA loans over $350K are now (August 1) going to require a separate appraisal of any machinery and equipment, and a business plan as well.

 

[Mark to market]

I found this on the Michigan Board site

Can a licensed appraiser perform a BPO that is USPAP compliant?

A: A Broker Price Opinion is exactly that – a price opinion given by a real estate broker. Real estate appraisers may give an opinion on the value of real property but are subject to the requirements of USPAP that apply to all appraisal practice: the Definitions, the Preamble, the Conduct, Management, and Confidentiality sections of the Ethics Rule, the Competency Rule, the Jurisdictional Exception Rule and the Supplemental Standards Rule. The only exception is when you have a duel license as both an appraiser and a real estate broker. If that is the case you must make it clear to the client "which hat you are wearing". Meaning, if you are a dual licensee you are allowed to give a BPO provided that you clearly identify that your roll is as a real estate broker and not as a licensed appraiser.

 

[hyr2000]

thank you for that - i will be declining that work for sure.