Performing BPO's using total software

[Tom D]

No reason why you couldn't. They're not an appraisal and you have a broker hat to wear. (not that you need it)

the problem is 'who does the client think you are? a broker, an appraiser, or a broker getting the BPO business because you are an appraiser (smarter than a broker, really doing doing a cheap appraisal), i mean BPO. if you picked out the sales for the BPO, and the state thinks you kinda did it as the broker with the hint of appraiser mixed in. then you did an appraisal, as per the new appraisal definition.

 

[1Badheckler]

I'm a bit confused about the whole "mandatory" thing.

The way I am reading it......some of you are suggesting that if you hold an appraisal license (and a sales or broker license) in your state, you must always follow USPAP whenever you provide an opinion of value (even when not acting as an appraiser). Such as..............when wearing your real estate licensee hat while performing a CMA or BPO.

To take that further, and ask my question....are you suggesting that if you hold an appraiser license, and someone in the normal course of conversation asks you what you think a house is worth, say at a Sunday church get together.............you must follow USPAP or you could be held liable?

I found nothing that stated that you follow USPAP as a broker anywhere and I provided the guidelines from the Appraisal Institute which outlines state laws for appraisers with brokers licenses in an attachment. It seems appraisers feel that USPAP somehow supercedes states laws which to my knowledge is definitely not the case. My state in their WAC's/laws actually give me a two sentence disclaimer that I must put in BPO's that The Appraisal Institute actually includes in that attachment.

I believe that the Mandatory vs Voluntary argument is misunderstood by some people in this group and does not take into account if a person has a dual license as both a broker and sales person.

 

[1Badheckler]

the problem is 'who does the client think you are? a broker, an appraiser, or a broker getting the BPO business because you are an appraiser (smarter than a broker, really doing doing a cheap appraisal), i mean BPO. if you picked out the sales for the BPO, and the state thinks you kinda did it as the broker with the hint of appraiser mixed in. then you did an appraisal, as per the new appraisal definition.

I have an MBA in real estate plus a BS in real estate too and managed at several large lending institutions in the area and all my clients are fully aware of my background. And none of those positions required either a brokers license or an appraisal license. So Broker or Appraiser license aside, I flat out understand valuation. I am providing them with my trusted valuation services, with whichever hat I need to wear.

 

[Terrel L. Shields]

in your state, you must always follow USPAP whenever you provide an opinion of value (even when not acting as an appraiser). Such as..............when wearing your real estate licensee hat while performing a CMA or BPO.

No you can wear each hat. But you cannot do a BPO as an appraiser only as a broker here. And some banks want the BPO with an appraisers signature....

someone in the normal course of conversation asks you what you think a house is worth, say at a Sunday church get together.............you must follow USPAP or you could be held liable?

That old wive's tale isn't too likely to happen but in theory if someone acts upon your advice and find it wrong, they do have a case potentially. But if you say, "As a broker and not as an appraiser, I think I would list for zzz dollars."

 

[Terrel L. Shields]

am providing them with my trusted valuation services, with whichever hat I need to wear.

I am just saying to be wearing your broker hat when you do a CMA or BPO... We had a bunch of appraisers who got offers to do BPOs and some did although NOT brokers.

 

[1Badheckler]

I am just saying to be wearing your broker hat when you do a CMA or BPO... We had a bunch of appraisers who got offers to do BPOs and some did although NOT brokers.

I appreciate your input Terrel and I didn't mean for that to come off as curt or snobby as that probably sounded. Unlike most appraisals for banks where they really only give a **** about whether or not the number comes in, these guys/the owners have substantial amounts of their own funds invested and want someone who understands value that they can trust. You ain't getting that from 98% of the people that provide BPO's.

The form filling software for BPO's they have out there where it actually chooses the comps and inserts the data is an abomination of the valuation industry. So I definitely understand why appraisers would be less apt to consider it worthy of an appraisers time and anything more than the worthless opinion it usually is. And probably an intrusion on the appraisers scared turf as well.

 

[Terrel L. Shields]

why appraisers would be less apt to consider it worthy of an appraisers time

Without a brokers license, here at least, it isn't the time nor fee that matters. It is whether it is legal or not.

"Evaluations" for community banks below deminimus are the same. We cannot do them in my state, some states like Tennessee allow appraiser to do so. But whatever we do related to valuation in my state has to comply with USPAP unless we are brokers too. AS a broker here, we can provide BPOs but not many appraisers are brokers in this area. When I started 30 years ago almost all appraisers held broker licenses. I can consult on geology with my RPG license, but I cannot set values (although traditionally we used to) as geologist is normally not considered to be a valuation expert.

 

[residentialguy]

the problem is 'who does the client think you are? a broker, an appraiser, or a broker getting the BPO business because you are an appraiser (smarter than a broker, really doing doing a cheap appraisal), i mean BPO. if you picked out the sales for the BPO, and the state thinks you kinda did it as the broker with the hint of appraiser mixed in. then you did an appraisal, as per the new appraisal definition.

That needs to be stated clearly in the report.