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Why BPOs suck.

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Dale Smalley

Senior Member
Joined
Jan 15, 2002
Professional Status
Certified Residential Appraiser
State
Florida
BPO look like appraisals but are not.

Subject is a Duplex in LA

Comps are similar size age and condition (they make no adjustments)
210-235-255. Listings are also similar at 210-239-260k.

With this information the Brokers thinks the value is $340,000-$360,000
 

Mike Garrett RAA

Elite Member
Gold Supporting Member
Joined
Jan 14, 2002
Professional Status
Certified Residential Appraiser
State
Colorado
That's why we will prevail!
 
Joined
Jan 16, 2002
Let's see....$100,000 over highest list and $105,000 over sold comp....
So what's the problem ? This guy would blend right in with our local
board and MLS. Do they teach this stuff to these idiots, or are they just
born dumb as rocks ! ?
 

Leon Stewart

Member
Joined
Jan 15, 2002
BPO look like appraisals but are not.

Subject is a Duplex in LA

Comps are similar size age and condition (they make no adjustments)
210-235-255. Listings are also similar at 210-239-260k.

With this information the Brokers thinks the value is $340,000-$360,000

What difference does it makes, it's a Broker's Price Opinion, and since it's a Report that's done by Brokers, who set the standards for such a Report. No one that I know of. So it's not definite that the Comps selected have to be related to the value estimate, or the fact that the preparer of such a Report has to know that there has to be some relationship. The Report is just junk until an Appraiser represent himself as a Broker and prepares one of these things. I really don't see how this type Report relates to the Licensed/Certified Appraiser since non-appraisers can complete these Reports. When someone calls me requesting a BPO I tell them that I don't do them, and refer them to the local Real Estate Office. The Report is clearly labeled as a "Brokers Price Opinion", it's not labeled as an "Appraisers Price Opinion", so just by its name, if the Appraiser does these types of Reports they are misrepresenting themselves as Brokers when they may not be such just based on the name of the Form. It seems as if that would be a no-brainer for someone to sue the Appraiser, or anyone who is not really a Broker. Then again, is this a Mortgage Broker or a Real Estate Broker that the Form Refers to? Since I don't do the Form, I have no way of knowing.

leon
 

Mike Garrett RAA

Elite Member
Gold Supporting Member
Joined
Jan 14, 2002
Professional Status
Certified Residential Appraiser
State
Colorado
Most of us are concerned because these are being used as an appraisal! In my state it is illegal for a real estate broker to provide a valuation service for a fee. They must be involved in the transaction such as persuing a listing otherwise they are, in fact, appraising with out a license.
 
B

Bemis Pownall

Guest
We learned today that there is a new product called "Appraiser's Price Opinion"?????

What next.????
 

Mountain Man

Elite Member
Joined
Jan 15, 2002
Professional Status
Certified General Appraiser
State
Georgia
8O Lender's play on words, what in the :eek:nfire: is next? :twisted:
 

bobburnitt

Junior Member
Joined
Jan 16, 2002
Yupp,

When Broker's Opinions are used in lieu of an appraisal, it sucks, blame it on the de minimus.

I will say this, it is possible for a broker to nail it, **if** he is competent and UNBIASED, but when does that happen? And if a broker does enough due diligence to produce a valid estimate, he has done as much WORK as at least a Limited Appraisal / Summary Report, but he only gets about 1/3 the fee. So, if you give any credence to the theory that people don't work for nuttin, well how much 'work' is really being done????

In Texas, a broker can do, and can charge for, a CMA, a BPO, and an appraisal, as long as it's not for a FRT, plus we have too many appraisers.

BB
 

Leon Stewart

Member
Joined
Jan 15, 2002
Most of us are concerned because these are being used as an appraisal! In my state it is illegal for a real estate broker to provide a valuation service for a fee. They must be involved in the transaction such as persuing a listing otherwise they are, in fact, appraising with out a license.

Mike:

That seems to be the Law in many States, but you don't see anybody being prosecuted for violations, do you? Plus the fact that many States have this setup where a person don't have to be licensed (non-mandatory States) to prepare an appraisal if it's not a Federal Related Transaction or above the $ 250,000 de minimus(sp) level, so the whole process don't make much sense. That is why we need better leadership in the Appraisal Profession to clear up all this confusion about this and other matters.

leon
 
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