BPOs in Texas – (Broker Price Opinion)

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

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 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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Information About Brokerage Services (IABS)

to prospective buyers, sellers, tenants, and landlords.
 

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Rainer
178,439
Richard Burge
Coldwell Banker Sloane Realty - Sunset Beach, NC
ABR - Property Manager - Notary

NC is now allowing BPO's as of 2013.  Assest management companys follow up certified appraisal with a BPO because they need a range of price in order to sell the property and the market changes even weekly for a value.

Jan 22, 2013 04:33 AM #1
Rainmaker
1,489,618
Sally K. & David L. Hanson
Keller Williams 414-525-0563 - Brookfield, WI
WI Realtors - Luxury - Short Sale - CDPE, REDS

Here we would appreciate if the agents doing the BPO's had to be more qualified...but for what they are paid...you get what you pay for...and that is usually not soooo much !

Jan 22, 2013 04:36 AM #2
Rainmaker
479,694
Bob Ratliff, Broker Associate - REALTOR® 512-587-5689
RE/MAX Capital City ~ Call Bob ~512-587-5689 Austin TX - REALTOR® CRS GRI - Cedar Park, TX
Your Cedar Park & Leander, REALTOR® CRS GRI

Sally and David, I don't bother with BPOs with little pay and time consuming but its good experience for new agents or part timers, my real point of the blog was to bring the liability to the Broker if their salespersons are doing BPOs, could be scary stuff? You're right about getting what you pay for. Have a great day and best wishes.

Jan 22, 2013 04:48 AM #3
Rainmaker
893,424
Richard Weeks
Waller Group - Dallas, TX
Realtor, Associate Broker - Manager Business Development

Bob,

Great reminder thanks for sharing.  In addition TREC rule 535.17 (b) requires the following disclosure be made:

THIS IS AN OPINION OF VALUE OR COMPARATIVE MARKET ANALYSIS AND SHOULD NOT BE CONSIDERED AN APPRAISAL. In making any decision that relies upon my work, you should know that I have not followed the guidelines for development of an appraisal or analysis contained in the Uniform Standards of Professional Appraisal Practice of the Appraisal Foundation.

 

Jan 22, 2013 05:09 AM #4
Rainmaker
479,694
Bob Ratliff, Broker Associate - REALTOR® 512-587-5689
RE/MAX Capital City ~ Call Bob ~512-587-5689 Austin TX - REALTOR® CRS GRI - Cedar Park, TX
Your Cedar Park & Leander, REALTOR® CRS GRI

Richard Burge, good to hear NC is allowing price opinions by Brokers, I use to be a big BPO agent and by doing so got REO listings but I no longer take the time since the pay is so little from the BPO Companies too many agents willing to do them for penny's.

Richard Weeks, I like your definition disclosure and it wouldn't even be a bad idea to use this for CMAs although usually our automated CMAs say's it's not an appraisal but an opinion at the bottom. Brokers just need to enforce with salespersons working BPOs and using disclaimer. Thanks for sharing

Jan 22, 2013 05:56 AM #5
Rainmaker
677,556
Mary Yonkers
Alan Kells 1-814-881-7548 - Erie, PA
Erie/PA Real Estate Instructor

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.

Jan 22, 2013 02:50 PM #6
Rainmaker
479,694
Bob Ratliff, Broker Associate - REALTOR® 512-587-5689
RE/MAX Capital City ~ Call Bob ~512-587-5689 Austin TX - REALTOR® CRS GRI - Cedar Park, TX
Your Cedar Park & Leander, REALTOR® CRS GRI

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.

Jan 22, 2013 03:02 PM #7
Ambassador
957,267
John McCormack
Albuquerque Homes Realty * www.AlbuquerqueHomes.com - Albuquerque, NM
AlbuquerqueHomes.com, Albuquerque Homes Realty

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. 

Jan 22, 2013 03:23 PM #8
Rainmaker
686,908
Sussie Sutton
UTR Texas Realtors - Pearland, TX
UTR TEXAS Realtors - Rep for buyers and sellers.

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

Jan 22, 2013 05:15 PM #9
Rainmaker
479,694
Bob Ratliff, Broker Associate - REALTOR® 512-587-5689
RE/MAX Capital City ~ Call Bob ~512-587-5689 Austin TX - REALTOR® CRS GRI - Cedar Park, TX
Your Cedar Park & Leander, REALTOR® CRS GRI

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

Jan 22, 2013 05:26 PM #10
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Rainmaker
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Bob Ratliff, Broker Associate - REALTOR® 512-587-5689

Your Cedar Park & Leander, REALTOR® CRS GRI
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