Broker Price Opinions in Nevada

[Fred]

I would be satisfied if USPAP stated simply that it is not a guide to protect the public trust,

So, in other words, they should lie?

 

[Elliott]

I'd be satisfied if USPAP stated simply that appraisers are the
'sixteenth echelon cog' in the real estate/financial machine. That
is an actual quote about appraisers I heard when I was a
junior in college.

 

[woodyva]

So, in other words, they should lie?

Steve:

I guess you think that USPAP actually looks out for everyone. The AF is a joke.

 

[Fred]

Steve:

I guess you think that USPAP actually looks out for everyone. The AF is a joke.

And you're serious?

 

[xmtraterbcra]

I would be satisfied if USPAP stated simply that it is not a guide to protect the public trust, but is set forth to protect the lenders and lender lackey's that maintain it at the AF.

I know it sets out to be public trust specific, but it is more or less in place due to a lender crisis and the reaction to it. Their inability to keep up with technology make sit suspect. A good friend of mine who is a respected appraiser as well was having this conversation with me the other day. If they did keep up with the tech, they would most likely do what the lenders wanted, not what wa sin the best interest of general public.

USPAP has made very good progress. They (the ASB) just need to keep going in the same direction.

Bert Craytor, SRA

 

[Carnivore]

1. Some appraisers seem to think that BPOs (Broker Price Opinions) are a kind of appraisal. They are not. They are an opinion of listing price. In fact, there is a download from the Nevada Association of Realtors that states just that!

http://preview.tinyurl.com/6xcxpn

Bert Craytor, SRA
Certified General Appraiser
California Licensed Real Estate Broker

Bert,

Maybe you could give a stab at defining what is an appraisal?

The possible solution is to change state laws prohibiting direct compensation
for BPO's. That is to say in my state they(BPO) are legal for listing purposes. RE Agents indeed do these for free for consumers. Yet banks are paying them a seperate fee. I submit that if no fee was paid all the non-listing BPOs would disappear over night.

This is a loop hole that lenders and RE agents are exploiting to complete an end run around meeting state appraiser licensing requirements. They claim listing, but in fact we know many are doing these for loans!

 

[Fred]

USPAP has made very good progress. They (the ASB) just need to keep going in the same direction.

Bert Craytor, SRA

What would you point to as positive change, and about when did it begin to take place?

 

[George Hatch]

The possible solution is to change state laws prohibiting direct compensation
for BPO's. That is to say in my state they(BPO) are legal for listing purposes. RE Agents indeed do these for free for consumers. Yet banks are paying them a seperate fee. I submit that if no fee was paid all the non-listing BPOs would disappear over night.

That might be an effective way of cutting the realty agents out of competition with us, but it still doesn't address the "evaluation" loophole for the banks. If it means that much to them to get cheap, minimal SOW appraisals and the appraisers won't provide them they'll find someone else who will.

If you think the realty agents have little expertise in doing appraisals, just wait until the banks figure out they can send their tellers or the homeless guys hanging out in front to go perform "evaluations". I'd imagine there are a ton of former appraiser trainees out there who couldn't get into our end of the business but who would loooove to get paid for doing "evaluations".

Unless and until the feds close the "evaluation" loophole there will continue to be a demand for high speed-low drag appraisals as performed by any warm body. As professional appraisers, we can either decide to service this appraisal market or we can let it go. I don't think we'll be able to force them to accept only 1004/2055 appraisals for all their appraisal needs.

 

[INSPECTOR]

Sad but true

That might be an effective way of cutting the realty agents out of competition with us, but it still doesn't address the "evaluation" loophole for the banks. If it means that much to them to get cheap, minimal SOW appraisals and the appraisers won't provide them they'll find someone else who will.

If you think the realty agents have little expertise in doing appraisals, just wait until the banks figure out they can send their tellers or the homeless guys hanging out in front to go perform "evaluations".


I'd imagine there are a ton of former appraiser trainees out there who couldn't get into our end of the business but who would loooove to get paid for doing "evaluations".

Unless and until the feds close the "evaluation" loophole there will continue to be a demand for high speed-low drag appraisals as performed by any warm body. As professional appraisers, we can either decide to service this appraisal market or we can let it go. I don't think we'll be able to force them to accept only 1004/2055 appraisals for all their appraisal needs.

At least they won't be able to do that many...I mean pushing those shopping carts around must slow them down some.

 

[George Hatch]

Around here, half of those guys have bikes. They seem to like ponchos quite a bit, too. My wife calls certain parts of town "bike country".