Real Estate Blog - Broker Price Opinions

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Broker Price Opinions - Play it Safe!

My previous post: Broker Price Opinions - Are You Breaking the Law? instigated a clarification from the Nevada Association of Realtors. jpeg file

My broker questioned the NVAR legal departments as to whether we can do BPOs within the law.

They responded with a release: Broker Price Opinion Misconceptions Clarified

A Real Estate Agent can prepare BPOs for banks or lenders as long as you insert this or similar language:

"This is a suggested listing price done in anticipation of getting the listing."

Also be careful NOT to use the word "value". The Appraisal Dept of the Nevada Real Estate Division may consider any information using the word "value" as an appraisal. jpeg file

Play it safe and use the correct language.

Virginia Hepp

ERA Brokers Consolidated

Mesquite NV Real Estate

Mesquite Chamber of Commerce Member

702 622-1177

vhepp@cascadeaccess.com

~ ~ ~

for info about Mesquite NV homes

Posted by Virginia Hepp - Mesquite NV MLS - Sun City Mesquite - Buyer Representative on 03/18/2008 01:14 PM

Comments (28)

bpo, broker price opinion, mesquite, nevada, real estate, era

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28 Comments on Broker Price Opinions - Play it Safe!

MAR

2008

I'll have to check out SC law to see what it says on BPOs. Thanks for the heads up!

Thats good information. I'll have to check with washington state law and see what it says. I know they can be tricky.

This is a great post! Some laugh at precision of vocabulary, however correct wording is a necessity in any business that is surrounded with legal scrutiny. Thanks!

Jim and/or Maria - Let me know about SC law, each state is different, no doubt. Be careful out there!

Jeff - Drop back in to let us know about Washington. The interpretation here was a little tricky, I am glad it was resolved and I hope a lot of Nevada agents who do BPOs get it right.

Bo - There were a few arguments in the comments on the original blog about "price" vs "value". I would hate to see someone doing a BPO and getting fined just because they didn't use the correct language.

Virginia, I am now going to you as my BPO expert! : ) You are SUPER!!

MAR

2008

Hi Virginia, hope you get a couple of those buyers under contact this week and get a chance to rest a bit. Liz

Hi Liz - As they say, "No rest for the wicked", I must be very bad to be this busy - ha,ha!

Hi Gary, I am trying! I really was worried that they were going to "make an example of someone", which happens sometimes. It is a very gray area law in the way it is interpreted. My broker is an attorney and got it defined for our protection. I wonder how other states handle this or if it is an issue.

MAR

2008

I had no clue until a guy walked into our office the other day.... it is not common here and it all seemed pretty weird.

MAR

2008

I've been doing lots of BPO's in North East Florida.

Thanks for the heads up on correct language and disclaimer.

I believe that performing BPO's for companies like BrokerPriceOpinion.com, GoodmanDean, REOtrans where one uses those companies websites, their forms, should be fairly insulated from misconception. They are not appraisal forms.

But, better safe than sorry and the disclaimer let's the contracting agency know the realtor is a professional and truly looking out for all parties.

MAR

2008

Sally - I read that post, that was wierd!

Kelly - It might be a Nevada thing only, each state is so different, just watch your back!

MAR

2008

Excuse me,

The State of Nevada controls law in Nevada, not the Nevada Association of Realtors. Colossal arrogance. Colossal stupidity to take what any Realtor entity says as a legal opinion. Not that most State Real Estate Commissions aren't populated by Realtors anyway.

MAR

2008

Hi OLD BROKER - Sue Saunders is General Counsel for the NVAR, she wrote the above article, it is her legal opinion. You are excused.

AUG

2008

AUGUST 6TH, 2008 AT 10AM

NEVADA REAL ESTATE COMMISSION WILL HOLD A "BPO TASK FORCE" MEETING.

http://www.red.state.nv.us/realestate/agendas/2008/bpo_agenda_080608.pdf

AUG

2008

Thank you, BPO Task Force, please let us know how the meeting goes.

AUG

2008

I was coming to warn you about the BPO task force meetings. We will see what transpires!

AUG

2008

Renee - interesting.

SEP

2008

Another BPO task force meeting September 10th at 8:30 am

SEP

2008

The meeting was great! The real estate division is going to propose to the commission that real estate agents are able to complete BPO's for the purpose of listing, selling real property and for parties making real estate decisions regarding the disposition of real property (short sale, preforeclosure) but never for lending purposes or appraisal purposes.

Nevada BPO meeting - Glad to hear they had another meeting!

BPO's - When will we know if the division's proposal is accepted - and part of the law? That will be a relief for a lot of people.

I also can't wait to hear the news from the meeting. I found this tidbit out there too.

I think we should also just put the title as CMA on the BPO or get them to change the forms to just

say CMA & that may solve it.

Las Vegas: New Regulations Will Stop Lenders From Using Broker Opinions Rather Than Appraisals

Oh, here is another link to an article in the local paper too.

Broker price opinions get look

Proposed regulations in dispute face test

By HUBBLE SMITH
REVIEW-JOURNAL

The real estate division is hoping to have a rough draft by September 23rd 2008. They will have to then submit it before the commissioner. It will take some time.

Dawn- A CMA and a BPO are 2 different things. That was brought also up at the meeting.

There was also an interesting article in the Real Estate Success magazine Vol4 Issue 5 a few months back on BPO's by T. Blanchard I don't have a link to that though.

SEP

2008

Dawn - Thanks for the links - interesting comments on Hubble Smith's article. Still a lot of debate going on but I don't think it matters what you call them - it is what they are used for.

I am not doing them at all - let the appraisers have them. If I do another, it will be directly for a listing, and I won't get paid to do it.

NV BPO - Thank you - Keep us posted?

JAN

Great blog Virginia,

I've had some of our national real estate partners bring this issue to my attention. We are a global/national real estate and business broker referral company. Most of our clients are international investors, lenders, and third party BPO company who have a need to connect with professional licensed U.S. real estate professionals. Due to the enormous increase of foreclosures the demand for BPO services are on the rise.

Hopefully, the NAR will use it's political influence to make sure each an every licensed real estate professional can continue to make a living. Some of our national U.S. partners have really increased their revenue stream buy doing bpos. It would be unfair if real estate agents are not able to earn money doing BPOs. In my opinion...I think it was those so called licensed appraisers (not all of them) who contributed a great deal to the over pricing of homes which played a big role in the so called mortgage mess.

Check us out @ www.realnova.com when you get a chance. I would love to have you join our national real estate partner network.

karen

Hi Virginia,

new update from Nevada Real Estate Division

http://red.state.nv.us/ Updated: Broker Price Opinions verbage, etc.. Also,

see my blog ? about BPO ..Broker Price Opinion-BPO ? Has Anyone actually rec'd a REO listing as a result of doing a BPO for this company-?

Dawn

Virginia: This is a great clause to put in a BPO.. Thank you for sharing....

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