250) BPOs and CMAs
02/25/08
Dear Henry,
I'm an appraiser in the process of getting a real estate sales license. How do I deal with CMAs or BPOs? Would they be considered appraisals because I'm an appraiser? If they are considered an appraisal, how would I avoid conflict of interest?
Kevin Ormerod ormerod@mindspring.com
Dear Kevin,
Most states permit real estate agents to make CMAs and BPOs as part of the process of trying to get a listing. Whether it is considered an appraisal depends upon your state's law.
The problem arises when you first make an appraisal and then try to get a listing.
H2
I'm an appraiser in the process of getting a real estate sales license. How do I deal with CMAs or BPOs? Would they be considered appraisals because I'm an appraiser? If they are considered an appraisal, how would I avoid conflict of interest?
Kevin Ormerod ormerod@mindspring.com
Dear Kevin,
Most states permit real estate agents to make CMAs and BPOs as part of the process of trying to get a listing. Whether it is considered an appraisal depends upon your state's law.
The problem arises when you first make an appraisal and then try to get a listing.
H2
109) Broker Opinion of Value (BPO)
06/17/07
Dear Henry,
Here in Michigan "Broker Price Opinions" are allowed if the RE Broker obtains a listing agreement for each BPO that they perform. However local banks and AMCs are telling these brokers that Fannie will also accept them. I know of a broker that does them in bulk for $40.00 per BPO without getting the listing.
Thank You
Thomas Markoski thomas@appraisal2day.com
Dear Tom.,
In most states, the appraisal license law makes an exception and does allows Real Estate brokers to make something like an appraisal -- what you call a BPO -- only in conjunction with obtaining their own listing (not listings for other brokers or for any other purpose).
It is my understanding that Fannie Mae and Freddie Mac only accept appraisals from licensed or certified appraisers. The URAR asks for the appraiser's license or certification number.
H2
Here in Michigan "Broker Price Opinions" are allowed if the RE Broker obtains a listing agreement for each BPO that they perform. However local banks and AMCs are telling these brokers that Fannie will also accept them. I know of a broker that does them in bulk for $40.00 per BPO without getting the listing.
Thank You
Thomas Markoski thomas@appraisal2day.com
Dear Tom.,
In most states, the appraisal license law makes an exception and does allows Real Estate brokers to make something like an appraisal -- what you call a BPO -- only in conjunction with obtaining their own listing (not listings for other brokers or for any other purpose).
It is my understanding that Fannie Mae and Freddie Mac only accept appraisals from licensed or certified appraisers. The URAR asks for the appraiser's license or certification number.
H2
55) Is a Broker Price Opinion an Appraisal?
02/21/07
Dear Mr. Harrison,
A broker wants me to go out and take interior/exterior photos of the subject property and fill out a BPO form (Broker Price Opinion) for bank owned homes. Is that a violation of USPAP since I’m not doing a complete appraisal and giving a value? Please let me know.
Harry harrymassingill@comcast.net
Dear Harry,
What constitutes an appraisal is determined by state law, which usually but not always is based on USPAP. For example, in CT any opinion of value not done by a Realtor directly in conjunction with obtaining a listing is considered to be an appraisal.
Frankly, I think you are skating on thin ice. Be careful you don't fall in!
H2
A broker wants me to go out and take interior/exterior photos of the subject property and fill out a BPO form (Broker Price Opinion) for bank owned homes. Is that a violation of USPAP since I’m not doing a complete appraisal and giving a value? Please let me know.
Harry harrymassingill@comcast.net
Dear Harry,
What constitutes an appraisal is determined by state law, which usually but not always is based on USPAP. For example, in CT any opinion of value not done by a Realtor directly in conjunction with obtaining a listing is considered to be an appraisal.
Frankly, I think you are skating on thin ice. Be careful you don't fall in!
H2
32) Comp Searches Per USPAP
12/31/06
Dear Henry,
Is there a way to word a comp search request so as not to violate USPAP? I’ve been told that any “value range” for a property is a violation.
Thanx,
Harry Massingill harrymassingill@comcast.net
Dear Harry,
The problem with most comparable sale search requests is that they don't really want what they are asking for. What they want is for you to do a preliminary appraisal of a subject property without producing a report. This is prohibited by USPAP.
If you received an assignment that provided you with a description of a house and its location and asked for sales that could be used in an appraisal of that specified property, I don't see why that would violate USPAP. However, if you were asked for comparable sales that would support a price, I think you would be violating the USPAP if you supplied them without making an appraisal.
H2
Is there a way to word a comp search request so as not to violate USPAP? I’ve been told that any “value range” for a property is a violation.
Thanx,
Harry Massingill harrymassingill@comcast.net
Dear Harry,
The problem with most comparable sale search requests is that they don't really want what they are asking for. What they want is for you to do a preliminary appraisal of a subject property without producing a report. This is prohibited by USPAP.
If you received an assignment that provided you with a description of a house and its location and asked for sales that could be used in an appraisal of that specified property, I don't see why that would violate USPAP. However, if you were asked for comparable sales that would support a price, I think you would be violating the USPAP if you supplied them without making an appraisal.
H2