BPO's VS. Apprasials

I have a friend who has been an appraiser for many years. He just told me he that in his business publications and such word in the appraisal industry is that BPO's will disappear in the not too distant future. I keep hearing the opposite that the appraisers are going away. He also told me a couple of years ago he was doing up to 200 appraisal per month now under 30. I have completed 500 BPO's this year I think his information is all wrong. Looking for evidence to support either side. He indicated a new law that would eliminate the use of BPO's.

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  • I hope this isn't true, as I use my the BPO's to supplement my income as I am sure many of you do as well.  In 2010 I did a little over 550 BPO's, however noticed that starting in November my volume went down drastically.  Has anyone else noticed this?  Any explanations as to why?  (I do work for Clear Capital, FARVV, Secured Lending Services and Mainstreet.)
  • I don't know if any of you are seeing this but for some time now these appraisals have been severely off. I had one property where i did the BPO that came in at $120k and the appraiser came in at over $250k. The property ended up selling for $127k. Just recently I did a bpo on one of my REO's that came in at $450k and I thought that was stretching it a little but the appraisal came in at $599k. Now I have a list price of $590k and agents are calling asking me if that was a misprint in the mls. Now the bank has one our local REO king/queens doing an additional bpo to see where the problem is. One of the issues i'm seeing is that these appraisers are coming from other parts of the state which would most likely mean they don't have the local market knowledge. It's not really their fault though as the newer appraisal laws have caused this.
  • While I respect appraisers I still maintain that realtors are in a much better position to determine market value of a property. That being said, I think the re-imbursement schedules for BPO's are not condusive to the most careful analysis.
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