Here is a link to check the legality of doing BPO's in your state

The scales of justice may appear blind, but they do eventually come to balance.  Please check your own state laws to see what is allowed and what isn't.  Here is a pretty good source:

http://appraisalnewsonline.typepad.com/files/bpo_state_laws.pdf

I have posted several blogs about BPO's in the past and the one point I keep trying to drive home is who the person requesting the BPO should determine how you respond.  I have heard several agents say they have done over 1,000 BPO's without a listing.  I would bet that most of those BPO's were done for third party servicing company's that are not even authroized to list a property!  Why would anyone ever do a BPO for free for them?

I have a different price tolerance for BPO's depending on possible outcomes.

• If there is really a chance of getting a listing, I am not worried about being compensated;
• If there is zero chance of getting a listing, I only do them if the amount of time their requirements would average equates to the fee they are willing to pay;
• If they require unrealistic analysis or their automated quality assurance will kick out the BPO due to the way they expect to see data verses the data we have available, I either reject their request or charge them accordingly.

I have created my own disclaimer that addresses every issue for the state of Idaho and upload it with each BPO I do.  I emphasize in it that in the state of Idaho, only a licensed Broker (not just a Realtor) can do BPO's, since I still know of agents that do them even though the law prohibits this practice.  I had one agent get upset at me for taking the time to email her the actual code since she didn't believe me!  I think she was upset since she thought I was trying to take away the little bit of income stream she had, but I really was trying to help her keep her license so she could have income!

I have started uploading my own marketing plan for each BPO just in case I have an opportunity to eventually list the home. 

I did one PBO on for a third party vendor that actually called me after the fact to request I cancel my invoice since the lender ended up calling me direct to list the property.  I agreed to since it was nearly a $2 million dollar listing and my invoice was only for $250.  Some of them charge a referral fee on the listings, so this was a small price to pay.

For those of you willing to work for free, when are you heading to Boise, Idaho?  I could use an assistant!