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BPO Survey
One of the three issues that the appraisers at the October Arizona Appraisers State Conference mandated be addressed was the issue of Broker Price Opinions or BPOs

We needed some hard data in order for anyone to listen to us. We needed to do our homework and so the Conference sent out a survey.

Results of the Survey.
Responses are divided into different areas as was done with the Appraiser Regulation Survey. All of the questions are included below.

There were 295 respondents.

SD = Strongly Disagree
D = Disagree
N = Neutral
A = Agree
SA = Strongly Agree

BPOs and Appraiser's Business
  • I feel BPOs are hurting my business. 2.4% SD, 3.4% D, 16.6% N, 33.6% A, 44.1% SA
  • BPOs are hurting the appraisal profession. 1.0% SD, 3.4% D, 11.2% N, 34.2% A, 50.8% SA
  • There should be some sort of short form that an appraiser could use to compete with BPOs. 12.2% SD, 19.4% D, 13.6% N, 27.5% A, 27.5% SA
Question Relating to Realtor Relations
  • I think we should not do anything about BPOs because it will cause conflict with the realtors. 60.3% SD, 30.8% D, 5.8% N, .7%A, 2.4% SA
Questions Relating to Regulations
  • It should be required that anyone who does a BPO is licensed in and lives in Arizona and personally sees the property. 1.0% SD, 3.4% D, 4.1% N, 21.4% A, 70.2% SA
  • BPOs should state the client, the assignment, the scope of the work, the intended use and the fee paid. 2.0% SD, 5.1% D, 7.8% N, 38.6% A, 46.4% SA
  • It should state in the BPO who the real estate agent's broker is and their address. 2.0% D, .7% A, 4.1% N, 33.6% A, 59.7% SA
  • The use of BPOs does not need to be regulated. 66.8% SD, 24.7% D, 3.1% N, 2.7% A, 2.7% SA
  • The unregulated use of BPOs has hurt the values of entire neighborhoods. 2.0% SD, 4.7% D, 26.1% N, 27.1% A, 40.0% SA
Questions Relating to Public Understanding
  • Most borrowers know the difference between a BPO and an appraisal. 46.4% SD, 38.3% D, 4.4% N, 8.8% A, 2.0% SA
  • The public needs to be educated on the difference between a BPO and an appraisal and what is required in an appraisal. 1.0% SD, 1.0% D, 4.1% N, 30.5% A, 63.4% SA
  • The public will buy evaluation services on price alone. Quality does not make a difference to most people. 7.8% SD, 19.3% D, 8.8% N, 42% A, 22.0% SA
Questions Relating to Lenders
  • BPOs should not be used by lendrs prior to listing a foreclosure property. 5.8% SD, 20.0% D, 17.3% N, 22.0% A, 34.9% SA
  • Many people who do BPOs give values that are client directed. 1.4% SD, 6.1% D, 25.8% N, 45.4% A, 21.4% SA
  • Banks and lenders are using BPOs when they should be using an appraisal in order to protect borrowers, the lender and investors. 1.7% SD, 2.4% D, 9.5% N, 26.4% A, 60.0% SA
  • BPOs should never be used for mortgage lending purposes. 1.0% SD, 2.4% D, 4.7% N, 18.0% A, 73.9% SA
Miscellaneous Questions
  • There is no good use for a BPO. 6.8% SD, 43.4% D, 22.4% N, 14.6% A, 12.9% SA
  • BPOs do have legitimate uses. 5.4% SD, 10.8% D, 17.6% N, 55.9% A, 10.2% SA
Questions Added Regarding the Board of Appraisal
  • I have an adequate understanding of how the Board is structured and what it is or is not allowed to do. 3.4% SD, 17.6% D, 30.8% N, 40.3% A, 7.8% SA
  • I would like to know more about how the Board is structured and what it can and cannot do. 81.36% said yes, 15.25% said no.
  • I have attended a regular Board of Appraisl meeting (this does not include outreach meetings). 35.35% said yes, 63.39% said no.
  • I have had a complaint filed against me. 34.24% said yes. 62.03% said no.
To the question, "What do you think is the most important legislation that should be passed this year", the ranking is as follows:
  • Legislation regulating AMCs - 65.4%
  • Legislation regulating the use of BPOs - 15.3%
  • Legislation that would help the Board do its job better - 8.5%
  • Legislation giving the Board the power to fine - 2.4%
  • Other - 5.1%
  • No Response - 3.4%
To the question, "Please rank the following issues as to what you believe are the most serious issues facing your OWN appraisal business," the results were as follows:

275 respondents to this question.

1. AMCs driving down appraisal fees.
2. Cheap appraisers doing poor appraisals.
3. Pressure to lower rates and provide faster service.
4. appraisers who do fradulent appraisals.
5. Broker Price Opinions.
6. Lack of business.
7. Appraisers from out of your area coming into your area.
8. More and more documentation.
9. Ever changing rules and regulations that are hard to keep up with.
10. Too much business to handle.

Developing a Plan of Action based on the Survey Results.
Conference representatives will be talking with representatives of the real estate sales area to determine ground.

Both sales agents and appraisers have been hurt by BPOs.

We are looking for common ground from which to move forward.


If not now, then when?
If not us, then who?

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