Broker Price Opinion (BPO)

[Michigan CG]

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

I had a request like that a couple years ago. The loan officer was transitioning to commercial. I told him i would be happy to do a comp check on that for him. As soon as I got his check for $3,500.

 

[The Warrior Monk]

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!

You have to check your state law on this, but typically you need to have a brokers/salespersons license to do these. The scope of practice is often very restricted; e.g., a licensed broker/salesperson may be restricted to doing these only to procure a listing.

Typically, the companies that are requesting these require a lot of work and the pay is dismal.

So many residential loan originators have tried to go elsewhere for business (like BizOp financing) and commercial loan origination because it's so lucrative.

And it's been rather amusing. Commercial and residential lending are not the same thing, whether is in appraising, lending, or brokerage. Res brokers that try to make the jump in commercial typically don't last long.

 

[larry b]

Dear hyr2000: Based on your questions, I suggest that you immediately take a time out from appraisals to: 1) familiarize yourself with USPAP and 2) your local license law. Otherwise, it's just a matter of time before you're in hot water, if not already.

 

[moh malekpour]

If you are an appraiser and they are asking you to do interior inspection and get 3 comparables and a value conclusion, then you are doing an appraisal. The fee and the form that they are asking you to use are irrelevant. If the scope of work is to use their form and it is very simple form, use that form and attach limited condition and certification to it. May be they want a restricted use report.
Tell them it is AVO "Appraiser Value Opinion"

 

[TEL2002]

Since everyone is in agreement to not do those bpos, why not tell us what the very low fee was?

Just curious what commercial bpos are going for.

 

[moh malekpour]

I think an appraiser with an active broker license can do a BPO so long as he or she signs the the reprt as a borker and puts down the broker ID # in the report and attach a disclaimer that based on the scope of work the report is not an appraisal ans should not be used as an appraisal report.
If an appraiser with a broker licens can list a home, why should not be able to provide a BPO but if the appraiser doesn't have a broker license and the client asks for a BPO, that report is going to be an appraisal.

 

[The Warrior Monk]

Since everyone is in agreement to not do those bpos, why not tell us what the very low fee was?

Just curious what commercial bpos are going for.

We never received a request for a commercial BPO, but the offer for the res BPOs are $45. I simply can't imagine a commercial agent doing a BPO except for a hefty fee, or to get the listing.