BPO vs Appraisal- Vote NOW!

By
Real Estate Sales Representative with David Weekley Homes BRE #01046118

I just got off a Linkedin Blog discussion where an Appraiser who is also REALTOR chided us for doing BPO's.  Really?  Should we stop doing CMA's too?  Thanks to HVCC many appraisers come from over an hour away and do not even have access to much of the local data yet they charge 10X what we are paid for a BPO. Sure it is much more work but is it really more accurate in this situation?  Often times the Appraiser never steps foot into any of the homes he or she has used on their appraisal but the local REALTOR who has access to the homes and is asked to do the BPO has seen or even show these properties and gotten feedback from potential buyers which is after all what determines value in the end not what the seller, REALTOR, Lender, or Appraiser's opinions may be. 

By the way Mr Appraiser if you can wear two hats why can't we?  You said you "shredded" several REALTORS in court over what you determined were bad BPO's.  Looked at the Code of Ethics lately? Remember you told us you were a REALTOR. Perhaps you should not be so quick to try to slam another professional.  Sure there are less than accurate value opinions from agents & brokers, but there are also many Apprentice Appraisers trying to get their hours that may be using less than accurate info too.  "He who lives in a glass should not throw stones" 

BPO's are no substitute for Appraisals and I do not have one REO Vendor that does not order both.  They are simply trying to judge the collateral damages in a foreclosure or short sale and in the end there will be at least one Appraisal maybe more before the property is ever sold. 

What do you all think?  Should REALTORS be allowed to perform BPO's? 

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C.J. Johnson, New Home Consultant

Email: cj@800cjsells.com

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Rainer
122,289
Kirsten Mellinger
Emerald Funding & Realty - Simi Valley, CA
Ventura County Real Estate

I'm with you CJ!  Believe it or not, I had an out of county appraiser call and ask if I could email him comps from the MLS since he didn't have access!!!!

Dec 01, 2010 09:19 PM #1
Rainmaker
55,630
CJ Johnson
David Weekley Homes - San Antonio, TX
Sales Consultant - Build On Your Lot @ DWH

Hey Kristen, I just got done announcing at a recent MLS meeting in Kern County that all Agents, Brokers, and MLS Participants should stop giving this info to those who are taking food out of their own members mouths.  Not only that but giving non members the info is a direct violation of our MLS rules. 

Dec 01, 2010 10:37 PM #2
Rainer
122,289
Kirsten Mellinger
Emerald Funding & Realty - Simi Valley, CA
Ventura County Real Estate

I agree...I have even received calls from local appraisers asking questions that could have been answered if they had access to the MLS.  It's amazing to me that appraisers are not required to have access to the MLS. Without reading the listing information and/or seeing photos that the agent uploaded, how possibly can the utilize comps strictly from title records to come up with a true value?!

Dec 03, 2010 09:37 AM #3
Anonymous
M Smith
Are you kidding? As a certified appraiser and a third generation one at that, there are so many things I can see wrong with your comments. Regarding the blogger which has both an appraisers and a realtors license, they have the power to wear both hats by state law. You can wear both hats too if you take the time to because an appraiser. This would give this person a lot more insight as they understand and practices both professions. I love how realtors are so quick to claim that once the HVCC went into effect that now you have all this appraisers coming from miles and miles away, outside of the market to do appraisals. Appraisers have guidelines under USPAP which address an appraisers geographic knowledge of any market they are preforming an appraisal in. Now just like in any profession there are a small number of which don’t follow the guidelines. Simply put, it wasn’t because of the HVCC. The HVCC has removed the realtors (a person with an invested interest) from pressuring the appraiser, which has put many realtors up in arms. The HVCC has made it hard for those not so upstanding realtors from working with the lender, which would simply order the appraisal from the appraiser which maybe in bed with the realtor that is writing up the purchase agreement. I say let realtors due BPO’s, just hold them to the same standards, guidelines and liabilities as any appraiser. As I’m sure may realtors have little understanding of USPAP and many of the requirements and guidelines any appraiser most a by too. If they did, you wouldn’t see realtors doing hundreds of BPO’s at only $50 a pop. To become a certified appraiser you most have a four year college degree, work under another licensed appraiser for no less then two years or 2500 hours and this doesn’t even account for the number of classes one most take to become an appraiser. This level of requirement can not be said for anyone looking to become a realtor. One last note, regards BPO’s; I’ve seen where you have realtors kicking out 10 plus BPO’s a day for lenders, and you can’t tell me that they are taking the necessary time to provide an accurate product.
Mar 24, 2011 06:12 PM #4
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Rainmaker
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CJ Johnson

Sales Consultant - Build On Your Lot @ DWH
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