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?