In Las Vegas, lenders are often relying on broker opinions rather than appraisals- those days apparently are coming to an end:
A Nevada Real Estate Commission task force crafted new language Wednesday for proposed regulations on broker price opinions, a method used by real estate agents to give buyers and sellers an estimate on the price of a home.
The final version, adopted after three hours of debate between task force members in Las Vegas and Carson City, states that a real estate licensee "may not knowingly prepare a broker price opinion for appraisal or in lieu of an appraisal for financing or valuation purposes as defined by USPAP (Uniform Standards of Professional Appraisal Practice)."
It isn’t simply a "turf battle" between appraisers and real estate brokers, said Debbie Huber, a member of the task force’s fact-finding group and a representative of the Appraisal Institute. It’s about protecting consumers, lenders and taxpayers, she said.
Appraisers contend real estate agents have violated Nevada Revised Statutes Chapter 645 when they prepare a BPO for any reason other than to determine a competitive listing or sales price.
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This never really affected typical loan financing as nearly all entities required a Certified appraiser. It does affect REO sales and workouts as many lenders were using the same listing agents to do their “cheap” appraisals for in house use.
I agree with Toby on this one. This is simply window dressing to find a “scape goat.”
We often joke that the designation of “MAI” (master appraisal institute) behind an appraisers name meant (Made As Instructed)as in, “let me see the contract price.”
twist -
OT but I couldn’t resist. Jan-Martin just reposted this at his site.
Igor says, “Help!”