BPOs, Drones, Oil War & Appraising
Appraisers doing $300,000 a year in BPOs
There has been a lot of chatter about BPOs again. Maybe we should consider changing the law in Virginia from being a mandatory USPAP state to a state like Tennessee. Appraisers can do BPOs in Tennessee and they do not have to worry about USPAP. Now, mortgage work still falls under USPAP. But I hear of appraisers doing $300,000 a year in BPOs. Food for thought. It won’t affect your business in a negative sense. Because those who want BPOs are getting them already. Just ask any agent. It will just let us eat some of their pie. AND they can’t get any of our pie, because they are not appraisers. Believe it or not, BPOs are also being performed on commercial properties. I had an office building to appraise. It was for a divorce case. They tried using a BPO but the judge threw it out. First thing they did at the the time of inspection was hand me the BPO. It was 5 pages, had 4 listings, 4 sales, 4 rentals – ALL FROM COSTAR. And the agent got paid $500. If he had 20 minutes in it I would be shocked. Should this be VaCAP’s next challenge?
The Saudis and Iranians are engaged in an oil war. Who can pump the most oil and break the other’s back. The sad part is both countries have a very young and large unemployed population. They need to be concerned about that. Well, the lower oil price, mind you I am not complaining, is disrupting economies around the world. As a result Europe and Japan are going ever deeper in to paying negative interest rates. And it costs you to put your money in a bank. So there is a flight to the US treasuries. This drives down the interest rates. So it’s busy time for appraisers. It also forced Janet Yellen to put rate hikes on hold. So enjoy it.
Drones! I want one. A nice one. Nicer than Andy Austin’s! One that can do my inspections for me. It will be like playing a video game from the comfort of my home. Fly down the street, look at my comps, look at the subject. Maybe even fly it inside of the subject. So, is this an inspection? I have been looking into this. I asked this to the board and they all looked at me as if I had landed from another planet. USPAP and FNMA says the appraiser must inspect. It does not say physically. So, is a MLS or Loopnet photo an inspection? What about Google Earth? Surveyors are using drones. Could we?
The Virginia state board meeting is April 26 at 10 AM in Richmond. This could be interesting, especially for those 9+/- appraisers fighting to keep their non compliant license issued by the state. VaCAP will be having a board meeting at Melito’s afterwards at 1:00. All are invited to attend.
Go FLY (Fight) Win
By Alex Uminski, VaCAP Treasurer