Appraisal Blog
- AMC Indemnity Clauses By Site Manager| April 20, 2009
- Proposed Appraisal Guidelines By Site Manager| December 8, 2008
- Possible Appraisall Bond Requirements By Site Manager| November 24, 2008
- Appraisal Port's Amended Agreement By Site Manager| November 11, 2008
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Nevada's New BPO Law (SB 184)
- Published June 16, 2009
Just when we needed the government to recognize that their involvement in the private sector caused the current banking crisis and the subsequent recession, due to political pressure that caused funding to flow through Freddie Mac and Fannie Mae like it was water, we now have them meddling in the valuation business.
Nevada's establishment of new Broker Price Opinion (BPO) rules that take effect on July 1, 2009 will allow about 20,000 real estate agents to express "price opinions" upon which decisions will be based by buyers, sellers, lienholders and third parties "making decisions or performing due diligence related to the potential listing, offering, sale, exchange, option, lease or acquisition price of a parcel of real property." In other words, for almost any purpose besides an application for a new loan.
One might ask, "are there any special qualifications required of an agent beyond the 1 or 2 weeks of real estate training required of agents for licensing to express such opinions?" The answer would be no. One might also ask, "is there any penalty for unqualified agents expressing opinions that are in error, and that may cost buyers, sellers, lienholders and others thousands or millions of dollars in losses?" Again the answer would be no.
So what the Nevada State government has done with this law is allow the entry of thousands of untrained individuals into the valuation business at a time when valuing real property has become more difficult than it has been in the last 10 years. Who exactly has this law been written to protect?
I have been a real estate broker for over 30 years and in 1991, after our country's first financial fiasco with Savings & Loans, appraiser licensing was adopted based on a federal mandate. The appraisal business has come a long way since then, and appraisers are so much better qualified than agents with regard to the valuation process that the professions have parted ways. By allowing any real estate agent to act as a value expert is a giant leap backward.
One wonders if this new law and its timing has anything to do with the fact that appraiser's have not been willing to provide market value opinions high enough to support higher listings and the upward pressure on prices (see "Realtors Say Low Appraisals Sinking Deals").
For those party's buying "broker price opinion" products from real estate agents in Nevada, I guess the government has set up a situation for you where its "let the buyer beware." An army of unqualified real estate agents will be giving you a chance to purchase their opinion, but if it's inaccurate you only have yourself to blame. » Read More
Nevada's establishment of new Broker Price Opinion (BPO) rules that take effect on July 1, 2009 will allow about 20,000 real estate agents to express "price opinions" upon which decisions will be based by buyers, sellers, lienholders and third parties "making decisions or performing due diligence related to the potential listing, offering, sale, exchange, option, lease or acquisition price of a parcel of real property." In other words, for almost any purpose besides an application for a new loan.
One might ask, "are there any special qualifications required of an agent beyond the 1 or 2 weeks of real estate training required of agents for licensing to express such opinions?" The answer would be no. One might also ask, "is there any penalty for unqualified agents expressing opinions that are in error, and that may cost buyers, sellers, lienholders and others thousands or millions of dollars in losses?" Again the answer would be no.
So what the Nevada State government has done with this law is allow the entry of thousands of untrained individuals into the valuation business at a time when valuing real property has become more difficult than it has been in the last 10 years. Who exactly has this law been written to protect?
I have been a real estate broker for over 30 years and in 1991, after our country's first financial fiasco with Savings & Loans, appraiser licensing was adopted based on a federal mandate. The appraisal business has come a long way since then, and appraisers are so much better qualified than agents with regard to the valuation process that the professions have parted ways. By allowing any real estate agent to act as a value expert is a giant leap backward.
One wonders if this new law and its timing has anything to do with the fact that appraiser's have not been willing to provide market value opinions high enough to support higher listings and the upward pressure on prices (see "Realtors Say Low Appraisals Sinking Deals").
For those party's buying "broker price opinion" products from real estate agents in Nevada, I guess the government has set up a situation for you where its "let the buyer beware." An army of unqualified real estate agents will be giving you a chance to purchase their opinion, but if it's inaccurate you only have yourself to blame. » Read More
Featured Articles
Agents vs. Appraisers: Is the HVCC to Blame?
- By Glenn Rigdon
- Published June 25, 2009
- Condominiums , Apartments , Single Family Homes , Residential Appraisal , Real Property Appraisal , General Appraisal Articles
- Unrated
NAR's decsion to attack the HVCC via the NY Attorney General's Office and FHFA to bring appraisals more in line with sales contracts is not beneficial to the appraisal industry.
Recent Appraisal Articles
What's Really Happening in the Las Vegas Land Market?
- By Glenn Rigdon
- Published June 24, 2009
- Selling , Buying , General Real Property Topics , Vacant Land Appraisal , Commercial Appraisal , Real Property Appraisal
- Unrated
New Appraisal Rules and Regulations: HVCC Clarifications
- By Michael C. Zari
- Published June 24, 2009
- Mortgage / Financing , Selling , Buying , General Real Property Topics , Real Property Appraisal , General Appraisal Articles
- Unrated
May 5, 2009, Written by: Michael C Zari If you have not already heard, as of Friday May 1st 2009, as one industry expert put it, "the complete lending landscape just changed
Did Appraisers Fail To Protect The Banks ?
- By Glenn Rigdon
- Published June 19, 2009
- Special-Purpose Appraisal , Vacant Land Appraisal , Industrial Appraisal , Hotel - Motel / Hospitality , Commercial Appraisal , Condominiums , Apartments , Single Family Homes , Residential Appraisal , Real Property Appraisal , General Appraisal Articles
- Unrated
After the Savings and Loan crash in the late 1980's, appraiser licensing was put into place in 1991 by the federal government in an attempt to avert another banking disaster. Here we are, however, in 2009 with a much larger banking disaster to deal with. So clearly the original plan for appraiser licensing has ended in failure.
Home Valuation Code of Conduct: Important For Investors
- By Chris Anderson, PhD
- Published June 18, 2009
- Mortgage / Financing , Selling , Buying , Foreclosure , Residential Appraisal , Real Property Appraisal , General Appraisal Articles
-
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Today marks a major change in the lending landscape and the way loans are sold to Fannie Mae & Freddie Mac
Using Historical Sales for Current Appraisals
- By Glenn Rigdon
- Published June 6, 2009
- Litigation / Expert Witness , Eminent Domain / Condemnation Appraisal , Special-Purpose Appraisal , Vacant Land Appraisal , Industrial Appraisal , Hotel - Motel / Hospitality , Commercial Appraisal , Real Property Appraisal
- Unrated
How do Market Trends Influence Appraised Values?
- By Glenn Rigdon
- Published April 19, 2009
- Litigation / Expert Witness , Property Tax Dispute , Eminent Domain / Condemnation Appraisal , Special-Purpose Appraisal , Vacant Land Appraisal , Industrial Appraisal , Hotel - Motel / Hospitality , Leases , Commercial Appraisal , Condominiums , Apartments , Single Family Homes , Residential Appraisal , Real Property Appraisal , General Appraisal Articles
- Unrated
Most appraisal assignments direct the appraiser to form an opinion of the market value of a specific property. If you are familiar with appraisal definitions you know that most market value definitions indicate that market value is the “most probable price” that a market participant will pay for a property. So in most instances appraisers have to consider value as an anticipation of future benefits.
Broker Price Opinions (BPOs): How to Get a Good Short Sale Value
- By Chris Anderson, PhD
- Published April 15, 2009
- Buying , Investing , Foreclosure , Real Property Appraisal , General Appraisal Articles
- Unrated
Oh, the games people play, especially in the real estate business This is especially true in the short sale world with broker price opinions (BPOs)
Appraisers Move to Offer BPO Type Reports
- By Site Manager
- Published April 2, 2009
- Commercial Appraisal , Condominiums , Apartments , Single Family Homes , Residential Appraisal , Real Property Appraisal , General Appraisal Articles
- Unrated
Since federally insured lenders now often don't need a full appraisal report, demand has strengthened for broker price opinions (BPOs) in many states. Appraisers have seen real estate agents getting valuation work that they assumed would belong to them, so a move is on to find an appraisal product that will allow appraisers to compete for the work.
Proposed California AMC Legislation - SB 237
- By Site Manager
- Published March 28, 2009
- Real Property Appraisal , General Appraisal Articles
- Unrated
Appraisal management companies or AMC's have effectively become a subsitute "third-party" in the appraisal ordering process. Many financial institutions have started using AMC's in an attempt to distance themselves from being accused of appraiser influence. Unregulated AMC's could, however, become involved in any number of acts that could influence appraisers or bias appraisal results. In my opinion, AMC's should be held to a high standard, and they should be willing to take responsibility for their actions.
Vegas Commercial Values Decline in 2009
- By Glenn Rigdon
- Published March 26, 2009
- Hotel - Motel / Hospitality , Leases , Commercial Appraisal , Real Property Appraisal , General Appraisal Articles
-
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As employment decreases, and the demand for office space and retail space also decreases, the number of defaulted commercial mortgages will likely increase. If large scale casino layoffs accelerate, per predictions, the impact to the commercial real estate market in Las Vegas could be significant. Office vacancy rates are already increasing toward 20% in Las Vegas, and the vacancy rate for retail properties is increasing toward 11%.
