BPO/CMA -a belief or conclusion held by special knowledge, a judgment or estimation of worth but not substantiated by positive proof.APPRAISAL - to set value - estimate the quality, amount, size and other features in an official capacity.I see way too many so called BPO/CMA's being disguised as appraisals. A true BPO/CMA will not have you make $ adjustments, a true BPO/CMA gives a brief description of the subject property (3/2/2, 1400 SF, pool, etc) as well as 3 sold and 3 listing comparables with brief descriptions and a comment section. If the Lender requires more details then they should be ordering appraisals. But we have been suckered into completing these mini-appraisals for fear of not receiving listings, so we take our $35 to $75 fee and walk away with our tail between our legs. Why do you think appraisers are so upset? Wouldn't you be if you had someone "stealing" your business because you've cut your costs and call it by another name?Did you know that real estate agents in Mississippi cannot do BPO's for money and will not do BPO's for free unless they get the listing? Yep, state law mandates that only a licensed state appraiser can be paid money for a property's valuation. I know there are a couple of other states as well but MS is the one that came to mind. I would love to see a universal simple BPO format!
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when in a gold mine, dig! Make hay while the sun shines! After being shown many appraisals by BPO companies who have questioned my work and sent me an appraisal to "help me" fix my humble BPO, I realize I am often better at estimating a probable sales price than many appraisers. I really try to give an accurate value using not just the comps I found but my knowledge of the area. Where I live, I am seeing many out of area appraisers who don't have a clue about the subtle aspects of our market area. I can't believe some of the comps I have seen appraisers use, that the BPO companies suggest I replace my comps wtih. Once I explain it to them they back off. I am understanding more and more that I often do a better job albeit for a much lower fee, than many appraisers.
In Florida, real estate licensees can perform appraisals but they need to conform to USPAP standards and can not be federally related transactions. Also, a state certified or licensed appraiser is not required if the transaction value is $250,000 or less with some exceptions as in Federally related transactions and Fannie Mae, Freddie Mac, HUD and the VA which require the use of state-certified or licensed appraisers for all loans with which these entities are involved, regardless of the loan amount.
Cindy, I agree with you, It would be nice to see a universal simple BPO format.
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Cindy, I agree with you, It would be nice to see a universal simple BPO format.