Broker Price Opinions? - BPO's

[JJohnson1985]

JJohnson I wasn’t referring to the websites which have a fill in your address, instant value feature; I’m referring to real appraisers offering versions for free or at fees lower than BPOs. Those websites you speak of may be fairy accurate in cookie cutter subdivisions with GLAs that only vary slightly. In some neighborhoods the results can be amusing. I receive requests for BPOs regularly since I have both licenses. Most BPO requests I receive are for pre-foreclosures and they tease you with the prospect of a listing. Since I can’t provide the cheap BPO and be fully complaint I refuse them. I know other real estate agents who provide BPOs, but they don’t provide them for every company that requests them. Like lenders and other clients, there are good and bad companies which order REO BPOs. One company recently discussed in here is having a difficult time getting decent listing agents to work with them at all because they’re stiffing agents as well as appraisers. My point is that many appraisers are providing similar products at lower fees or no fees and claim to be complaint. One has to assume if they’re compliant they’re grossing $3 an hour or they’re being profitable and less than compliant.
Back to your original question, eventually Microsoft or Google will run virtually all MLS systems and some values may be just a click away.

Oh wow! Appraisers themselves making the business worse. Can we just shoot them??? :new_2gunsfiring_v1:
LOL

 

[JRS at OBX]

Actually in some states, North Carolina included, it is illegal for a real estate agent to perform a BPO for anything other than a possible listing.

 

[erick anderson]

Most BPO's are done for pre-foreclosures. The bank is trying to get an idea about value. If they proceed with the foreclosure they will order a full appraisal (usually). Many Realtors do BPO's as a channel for listings. So often the value will reflect what the lender wants to hear rather than the truth.

That's really not true in most cases. Unlike appraisal orders, BPO orders do not contain any target, estimated value or other desired value.

 

[Joker]

Since no one from Ohio has chimed in yet, I will.

BPO's were more common in Ohio than they have been starting in January of this year. SB 185 became law in January requiring the use of an appraiser for all residential mortgage transactions. It would be illegal for you to do a BPO for a mortgage broker.

 

[Vegan702]

Oh wow! Appraisers themselves making the business worse. Can we just shoot them??? :new_2gunsfiring_v1:
LOL

I say shoot em all, the nerve of those appraisers performing a legal service for the community how dare they.

 

[JJohnson1985]

Since no one from Ohio has chimed in yet, I will.

BPO's were more common in Ohio than they have been starting in January of this year. SB 185 became law in January requiring the use of an appraiser for all residential mortgage transactions. It would be illegal for you to do a BPO for a mortgage broker.

Yeah I read that on the dept of commerce site, again that's why it was/is confusing that they get away with it. Technically there shouldn't be any done now, except for listings correct? Thanks again everyone for replying, letting us :new_newbie: 's pick your brains :icon_idea:

 

[JJohnson1985]

I say shoot em all, the nerve of those appraisers performing a legal service for the community how dare they.

Legal maybe but doesn't always mean ethical, like it was posted to do it cheap you are losing money or not doing it correctly, I know I am a newbie, and I know what happens with assuming, but can't you pretty much assume that? The example was doing it cheaper than BPO's.

 

[Vegan702]

Legal maybe but doesn't always mean ethical, like it was posted to do it cheap you are losing money or not doing it correctly, I know I am a newbie, and I know what happens with assuming, but can't you pretty much assume that? The example was doing it cheaper than BPO's.

Why wouldn't it be ethical? They can be done legally and ethically and some may even make money doing them. Some may do them as a service to their client without any motivation for money. There are situations in business when you may do a service not to make money but just for good customer service. I am not saying that this is one of those situations, but just pointing it out. I can do a compliant comp check or desktop appraisals and make money doing it legally and ethically. If I couldn't do them legally and ethically I wouldn't be doing them. Most people here don't do them (at least they say out loud) at all whether legal or not as they don't think they are ethical or they just don't make any money doing them. I try and get those I know who are doing them illegally to do them correctly and whether they charge for them or not is their business not mine.

 

[JJohnson1985]

Why wouldn't it be ethical? They can be done legally and ethically and some may even make money doing them. Some may do them as a service to their client without any motivation for money. There are situations in business when you may do a service not to make money but just for good customer service. I am not saying that this is one of those situations, but just pointing it out. I can do a compliant comp check or desktop appraisals and make money doing it legally and ethically. If I couldn't do them legally and ethically I wouldn't be doing them. Most people here don't do them (at least they say out loud) at all whether legal or not as they don't think they are ethical or they just don't make any money doing them. I try and get those I know who are doing them illegally to do them correctly and whether they charge for them or not is their business not mine.

This is my second time trying to respond, I guess I took too long the first time and the site logged me out without the post getting posted so I'll try this time to make it shorter
I guess it depends in the situation and the state you are doing them in. I don't know anything about Nevada since I live in Ohio and I have only done reading/researching and scheduled my classes so don't truely even KNOW Ohio hence my reason for this thread. My problem is to those in appraising and in real estate in general who abuse their position. It effects everyone, and mostly the innocent people who don't know any better and are relying on those who are abusing them. The economy as a whole is greatly effected by real estate and most people's biggest investment is their personal real estate purchases. The whole subprime deal the country has and is going through is one example. Appraisers meeting a number or not correctly appraising a property's value is another. Allowing someone who is relying on a professional opinion and that "professional" abuses that and ends up contributing to that innocent person to have a mortgage on a home/property that is more than what the property is worth or giving it to someone who can't afford it makes me sick. Anyone who is acting illegaly and unethically is to whom I was referring to by saying jokingly can we shoot them all. Vegan you know more than I do about that because you said you know and try to persuade those to not choose to act in that way. Again I am not saying BPO's can't be done legally or ethicly, I truely only know a speck of sand out of the whole beach about this field but in Ohio it is illegal to do them for mortgages. So I was not referring to shooting you

 

[Offshore]

There are situations in business when you may do a service not to make money but just for good customer service.

Is this the appraiser's version of the baker's dozen or free sample? Maybe the comp check cult will chime in about how professional they are because they’ve discovered a way to provide a free USPAP complaint product. Has this business reached a new low where it is sinful to charge for services? My children’s college fund doesn’t grow from free comp checks. I suppose the lesson to be learned is if you provide them for free, make somewhat of an attempt to be compliant.