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APPRAISAL |
BROKER PRICE OPINION |
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1. Appraisal is conducted by an appraiser who is licensed by a State Board through procedures approved by Federal Standards. |
1. BPO is conducted by a Real Estate Broker or other agent of the broker who may not be licensed as an appraiser, and may have little or no training and education in appraisal methodology.
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2. Appraisal/Appraiser is required to meet all standards, including Codes of Conduct, set forth by the Uniform Standards of Professional Appraisal Practice (USPAP).
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2. BPO is required to include a written statement containing the following language: "THIS IS AN OPINION OF VALUE OR COMPARATIVE MARKET ANALYSIS AND SHOULD NOT BE CONSIDERED TO BE AN APPRAISAL. In making any decisions that relies upon my work, you should know that I have not followed the guidelines for development of an appraisal or analysis contained in the Uniform Standards of Professional Appraisal Practice of the Appraisal Foundation."
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3. Appraiser must perform assignments with impartiality, objectivity, and independence.
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3. BPO has the additional complication of being delivered by realty agents who may have an interest in garnering future brokerage business from a BPO client.
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| 4. Appraisal requires a visit to the subject property site and to view any other properties used as a comparable basis. |
4. BPO is oftentimes completed without a visit to either the subject property or any comparable properties.
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5. Appraisal includes a measurement of the subject property to assure the proper Gross Living Area is being reported.
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5. BPO accepts Gross Living Area measurements from the Tax Records or other nonverifiable sources.
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| 6. Appraiser makes an observation of the exterior of the subject property to note the condition of the foundation, roof, paint, caulk, presence of wood destroying insects, or any maintenance issues. |
6. BPO makes no inspection of the exterior of the subject property and thus has no knowledge about the soundness of the structure or any maintenance issues which may be present.
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| 7. Appraiser makes an interior observation to note condition of flooring, walls, paint, windows, plumbing, appliances, H/VAC, or any other special features of the subject property. |
7. BPO makes no inspection of the interior of the subject property and thus has no knowledge about the condition or features of the subject property.
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| 8. Appraiser confirms general structural adequacies of the subject property such as # of bedrooms, # of bathrooms, size and storage capacity of the garage, or any room additions and the quality of the addition. |
8. BPO accepts features of the subject property from Tax Records or other nonverifiable sources.
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| 9. Appraiser observes attic for proper insulation, ventilation, and other features which are not noticeable from the interior of the subject property. |
9. BPO has no knowledge of any items in the attic.
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| 10. Appraiser observes subfloor for soundness and various potential hazards. |
10. BPO has no knowledge of any real or potential subfloor problems. |
