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Our Board send us an "Appraisal Board Advisory on BPOs" where it says BPOs are appraisals and we can be subject to penalties
Should we stop doing BPOs? I heard from one agent who stated that DODD Frank says It is legal to do do BPOs. Your thoughts and help will be appreciated as my broker is telling us that we cannot do BPOs anymore after reading above advisory and cosulting with an attorney
New Jersey? There are several states that do not allow agents to do BPOs. It is stupid of course. Maybe all of the BPO companies could just call them CMAs which is what we do for sellers every day. Does that mean you cannot provide a written valuation opinion - CMA - to the local sellers in your market before listing because it is now an appraisal?? Of course not. Ya gotta follow your state law but that paper is just an opinion as well. It specifically states that it is not law or the verdict from your attorney general! Sounds like your broker is being overly cautious.
Looks like its just your state appraisers board trying to protect their $650.00 fees. It should be written into your state statue of whether you can perform BPOs or not. I have heard more states are coming around, and only a few left that don't allow them.
I agree, this varies state by state in according to their laws.
Personally I stopped doing BPO's 2 years ago because of the fees being paid. Just was not worth my time any more I usually lost money on each BPO when I counted my time involved.
A BPO is just that a BPO, CMA. Now all they have to do is be sure it is handled by someone who has actually done one.