BPOs in Texas – (Broker Price Opinion)

By
Real Estate Agent with RE/MAX Capital City ~ Call Bob ~512-587-5689 Austin TX - REALTOR® 492107

BPOs in TEXASTexas Real Estate Brokers use to be able to perform non-federal related transaction Appraisals for compensation under the Texas Real Estate Licensing Act found in Chapter 1101 of the Texas Occupations Code for decades.

While legislators removed “appraisals” from the list of permitted activities in Chapter 1101 effective Sept. 1, 2011 for Real Estate Broker’s it added another permitted activity in its place (BPO). Brokers and their salespersons may prepare written analyses, opinions or conclusions related to the estimated price of real property as long as there is a written disclaimer stating:
  1. Are not referred to as appraisals
  2. Are given in the ordinary course of the broker’s or salesperson’s business
  3. Are related to the actual or potential acquisition, disposition, encumbrance, or management of an interest in real property

The Appraisers Act reinforces this fact. The Statute was amended to permit BPOs as long as they are done in compliance with the three conditions just enumerated (section 1103.004, Texas Occupations Code).

Texas Real Estate Commission (TREC) addressed BPOs under its rulemaking authority by amending the Texas Administrative Code.  In addition to Rule 535.17 requiring the written disclaimer, the same rule now allows a salesperson to prepare, sign and present a BPO or comparative market analysis on behalf of the salesperson’s sponsoring broker, but the salesperson must submit it in the broker’s name and the broker is responsible for its content.

Broker’s and salesperson’s factors they will consider when pricing a property include: the value of similar surrounding properties, sales trends in the neighborhood, an estimate of any of the costs associated with getting the property ready for sale and/or the cost of any needed repairs. It is important to note that a BPO is not the same as an appraisal

If you or someone you know is considering real estate in the Austin area I would welcome the opportunity to consult with you or them about the many real estate options found in our great city and surrounding areas.

Posted by

 Canyon Vista Realty Bob Ratliff BrokerLago Vista Home Search 

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Bob Ratliff, REALTOR® (512) 587-5689 
TX Licensed Broker #492107 Information is deemed reliable but not guranteed, all rights reserved by Canyon Vista Realty

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Topic:
Real Estate Industry
Location:
Texas Williamson County Cedar Park 78613
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Rainmaker
668,186
Mary Yonkers
Erie/PA Real Estate Instructor
Alan Kells 1-814-881-7548

Dumb, why would I want to work for so little when I could list and sell a property earning so much more?

Good post that makes the point quite well, Bob.

January 22, 2013 02:50 PM
Rainmaker
335,536
Bob Ratliff
Your Cedar Park Real Estate Consultant, REALTOR®
RE/MAX Capital City ~ Call Bob ~512-587-5689 Austin TX - REALTOR®

Hi Mary, I totally agree too little money when we can gain more results from social media, farming, face to face, and many other systems. Thanks for stopping by to say hi,  I so appreciate my regulars. I'll drop by your blog and say hello.

January 22, 2013 03:02 PM
Ambassador
777,557
John McCormack
AlbuquerqueHomes.com
Albuquerque Homes Realty * www.AlbuquerqueHomes.com

Bob, Im sure glad Im not the managing broker taking all the heat for those BPO's.  Seems like a lot of details making sure you dont get spanked or called on the carpet by the TREC. 

January 22, 2013 03:23 PM
Rainmaker
597,584
Sussie Sutton
Rep for buyers, sellers, and new construction.
UTR Texas Realtors

Not much commission worth all the work. I don't want to do any BPO's.

January 22, 2013 05:15 PM
Rainmaker
335,536
Bob Ratliff
Your Cedar Park Real Estate Consultant, REALTOR®
RE/MAX Capital City ~ Call Bob ~512-587-5689 Austin TX - REALTOR®

Hi Sussie, I'm totally with you, I just needed something to blog about today, I guess it was the lazy way out. See you in the Rain...Bob

January 22, 2013 05:26 PM
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Rainmaker
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