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BPO vs Appraisal: can you argue both sides of the debate?

By
Real Estate Agent with Better Homes & Gardens MetroBrokers

 

As one who is directly involved with the education of real estate agents and appraisers, I continue to be amazed at the venom that can be spewed in blogs between agents/brokers and appraisers.  One current thread in NAR's Appraisal Insight caused me to write this post.  In reading all the blog post in AR, LinkedIn, NAR, AI, etc., I find that far too many are just plain venting of emotions and the positive influence that might result from a particular post is lost in the venting process.  The "irrational exuberance" in both professions during the go go early 2000's is only surpassed by the "irrational ignorance" of the late 2000's.

As in most things in life, an untrained few continue to impact and influence the reaction of the many. And in particular those outside both professions, the regulators and most importantly the consumer of the services of both professions.  Each profession now has to spend a disproportional amount of time defending it's past and current actions.  Have you educated yourself to a level that you not only understand the issues related to BPO's vs. Appraisals but, you can educate and inform your peers and clients?  If you can't ask yourself, Why Not?  The knowledge is out there. All you have to do is seek it.  Real Estate Agents and Appraisers should tone down the rhetoric against each other and work for the collective good of the real estate industry.

There are no easy answers but, history has shown that those who constantly seek to educate themselves in times of crisis will not only improve their own lot in life but in these troubling times better serve the general public.

 

Comments (5)

Heather the Realtor Orlando, Lake Mary
LemonTree Realty - Orlando, FL
First Time Home Buyers, Bank Owned Homes

I think realtors do a fine job but I really wish they would leave the property valuation up to the pros - certified appraisers. I just think that Realtors have different views then appraisers.

Apr 10, 2009 10:54 AM
Bud Hunsucker
Better Homes & Gardens MetroBrokers - Atlanta, GA
Bud Hunsucker

Heather, Agree with you.  The vast majority of REALTORS and Appraisers are professionals and are not the issue to me.  It's the vocal minority on each side that use the available "Social Media" forums now to constantly attack the otherside.  Time will work it out.

Apr 10, 2009 11:02 AM
Rita Bradley
Laguna Hills, CA
Valuation Consultant in Orange County California 949-916-3263

Hi Bud,

The biggest problem I see with an agent doing an appraisal is if he or she has incentive to inflate or deflate his/her opinion of value.  This happens a lot with REO listings.  The agent does free bpos in the hopes that he/she will get to list some of the properties.  This is just asking for trouble.  There are dozens of article that have come out recently about the devaluing of real estate because of this conflict of interest.  I called it back in Nov of 2007 - http://cli.gs/r87gpa - if you want to check it out.  To be fair I also mention the fact that inexperienced appraisers can contribute to this problem as well. 

Can I argue both side of the argument?  Maybe.  If all agents performing BPOs went through the rigorous training and testing that appraisers do and are required to have errors and omissions insurance and 64 hours of valuation continuing education every two years and they have to adhere to USPAP and they could lose their real estate license for being incompetent or committing fraud and banks and the gov start holding incompetent and fraudulent practitioners accountable and agents still want to do BPOs for around $50 a pop or for free and if they didn't have a vested interest in the outcome of the valuation, then I guess we'd be getting a hell of a deal.  Sure have it guys.

PS.  I think I'm fairly educated on the topic.  How can you tell if someone isn't?

 

Apr 10, 2009 01:25 PM
Bud Hunsucker
Better Homes & Gardens MetroBrokers - Atlanta, GA
Bud Hunsucker

Well said SKY and without attack rhetoric.

Apr 11, 2009 12:53 AM
Rita Bradley
Laguna Hills, CA
Valuation Consultant in Orange County California 949-916-3263

Gracias!  Rita

Apr 11, 2009 03:40 AM