2nd November 2012

OREA Notice: BPO Valuation Products & Appraisers

Broker Price Opinions, Value Reconciliation, and other Alternative and Preliminary Valuation Products

The Office of Real Estate Appraisers (OREA) receives ongoing inquires from our licensee’s with questions regarding whether or not they can develop an opinion of value by doing Broker Price Opinions (BPO), desktop reconciliation of values, or a variety of other kinds of alternative and/or preliminary valuation reports. The answer to these questions can be found in the Uniform Standards of Professional Appraisal Practice(USPAP) and Title 10 of The California Code of Regulations.

The 2012-2013 edition of USPAP defines the word “appraisal” as:

(noun) the act or process of developing an opinion of value; an opinion of value. {page U-1}

(adjective) of or pertaining to appraising and related functions such as appraisal practice or appraisal services. {page U-1}

Therefore, when developing an opinion of value, regardless of the reporting format (BPO, Reconciliation of Value, etc.), an appraisal is being performed.

Title 10 of the California Code of Regulations
, Section 3701, specifically requires that every holder of a license shall conform to and observe the Uniform Standards of Professional Appraisal Practice (USPAP). Anytime an opinion of value for real property is reported by an appraiser licensed by the State of California, that appraisal must comply with USPAP! Therefore, prior to accepting any assignment, regardless of the format in which the opinion of value is provided, the appraiser must familiarize themselves with the applicable portions of USPAP and develop, report, and maintain records according to the applicable USPAP rules and standards.

Furthermore, if you are a registered Appraisal Management Company (AMC), Title 10 of the California Code of Regulations, Section 3577, requires that AMC’s must adopt reasonable procedures designed to ensure that all appraisal assignments completed by its independent contractor or employee appraisers are performed in accordance with USPAP. Although, delivering a USPAP compliant report is ultimately the responsibility of the appraiser, an AMC must be cautious about ordering valuation products that are not USPAP compliant.

The business model of the appraisal industry continues to change and new valuation products are, and will continue to be developed and requested in lieu of USPAP compliant appraisals. A California State licensed appraiser, when acting as an appraiser, is required to comply with USPAP. In some cases supplementing the requested reporting forms will be required to be in compliance with USPAP. In other cases, when compliance with USPAP is not possible, turning down the assignment maybe the only option. Remember-forms are not always USPAP compliant, however, USPAP compliance is always a repurement for a licensed appraiser the appraiser is!

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1st November 2012

San Antonio – Appraiser Marketing Event of the Year!

Don’t miss what’s being called the appraisers “Marketing Event of the Year” being held in San Antonio, TX at the Marriott Rivercenter, Thursday, Nov 8th from 6:30-8:00 pm on the 3rd Floor in Conference rooms 3/4.

At this FREE content packed marketing event you’ll learn:

* How to grow and scale your business
* How to generate all the non-lender leads you can handle
* How to be more efficient and productive in your business
* How to put your business and your marketing on auto-pilot
* How to use video, mobile and other cutting edge marketing strategies to increase leads
* How to “Outsource” your business
* How to Find More Time, Make More Money and Have More Freedom in Your Life!

Appraisers today are struggling with a variety of issues such as the ones above.

That may or may not be you, but if you are one of the appraisers who knows that you’re capable of achieving more, or you simply need help reaching the next level in your business don’t miss this event!

We’ve already helped hundreds of appraisers across the country grow their businesses and at this event we’ll show you how to do the same as we have the solutions to the challenges you’re facing.

Seat are filling up fast so make sure you Pre-Register by going to www.AppraisersClub.com/Expo to guarantee your spot.. Also for the first 25 who pre-register and show up we’ll provide you with your very own custom video made specifically for your business in addition to several other bonus items.

At this event we’re also going to have a lot of fun including raffling off some great prizes including a Free Custom Website, Custom Videos, $100 Gas Card and more.

So once again make sure to guarantee your spot by going to www.AppraisersClub.com/Expo and we’ll look forward in seeing you there!

Bryan Knowlton & Roy Meyer

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