In all the excitement, I missed this precious little bit of news.
Nota bene:
A concern has been raised that real estate brokers and salespersons are providing opinions of value unrelated to the prospective listing or sale of property.
The horror!
My home is worth $475,000. I have no intention of selling. Come and get me, Coppers!
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Brian Brady says:
It’s not worth a dime over $470,000; see you in the tents!
April 26, 2007 — 4:54 pm
Todd Tarson says:
This is why I hope to find out where AAR is on all of this at my meeting tomorrow.
I’ve had conversations with appraisers in the past that say a BPO done by a Realtor is taking food off their dinner plates. I insist that I’m not an appraiser and that I’m not doing an appraisal. Same as Zillow.com is not offering appraisal services.
April 26, 2007 — 5:18 pm
Greg Swann says:
Here’s one to think about in the age of PMI redux: What are lenders going to use five years from now to decide if the PMI can come off?
April 26, 2007 — 5:43 pm
Ryan Bailey says:
Greg,
It seems like you have a problem with appraisers, what gives?
Actually, I’m sure you already know that brokers are one of the current eight entities that are exempt from the current law…
April 26, 2007 — 6:07 pm
Jonathan Dalton says:
Seems to me any contact with the public can be taken as communication for a prospective listing or purchase. It may not be today, next week or next month but somewhere down the line …
Maybe we can rename them the Arizona Board of A-Paranoia since they seem to see bogeymen around every corner.
April 26, 2007 — 8:10 pm
Lee Trice says:
Greg –
In the spirit of full disclosure, I am an appraiser. For that matter I am also a Real Estate Broker….but only use that privelege for my own transactions.
I hope you will admit there are many levels of distinction in “rendering an opinion of value”.
You joke in your post “my house is worth $XYZ…come and get me appraisal police”. However, in that context you did not produce an opinion for a FEE by someone who intends to use that opinion for a business purpose beyond the list or sale of real estate.
An enormous amount of BPO work is completed by Realtors for LENDERS…which is distinctly different than providing an opinion of value for a consumer interested in selling a home.
If a Realtor wishes to do this type of activity I do not think it is too much to ask for that person to be subjected to the same regulatory standards we appraisers must.
I suspect the response may be different if significant numbers of Appraisers began listing and selling real estate without holding a Real Estate Salesperson License??
I am in no way Anti-Competition or Pro-Regulation….but I am Pro-LevelPlayingField.
Food for thought.
April 27, 2007 — 9:07 am
Greg Swann says:
> You joke in your post “my house is worth $XYZ…come and get me appraisal police”. However, in that context you did not produce an opinion for a FEE by someone who intends to use that opinion for a business purpose beyond the list or sale of real estate.
Neither of these are requires by ARS 32-3601. The revised definition of “appraisal” will be even more broad, if it passes. The text I posted is a bright-line violation of ARS 32-3601 and 3603 if what Zillow.com does is a statutory violation.
> I suspect the response may be different if significant numbers of Appraisers began listing and selling real estate without holding a Real Estate Salesperson License??
I think all of these laws are anti-consumer. In the case of appraisers, the only clients who matter are lenders, and they’re going to vet your qualifications a lot harder than asking if you have a minimum-standards state-issued license.
I have a right to form and express my opinions. If someone wants to claim that they have been damaged by my expression of a fact or opinion, that’s a civil case. None of this regulation benefits the consumer. To the contrary, by artificially limiting supply, consumers are actively harmed by having to pay higher prices.
April 27, 2007 — 9:34 am
Lee Trice says:
Again….I am on your side in the lesser regulation camp.
But the only thing worse than too much regulation is unevenly applied regulation.
Now Zillow is another animal. A free consumer facing AVM is clearly different than a human appraiser. However, a human Realtor (without an appraisal license)is performing activities that do directly compete with an appraiser.
I can also come up with a million analogies in response to your ‘let the market decide’ argument. What if consumers could choose unlicensed real estate sales people….or unlicensed doctors, lawyers, etc., etc?
I also realize that your posts are directly specifically at AZ statues (existing or proposed). I am not in AZ and I am speaking to this issue in general…and different States have different standards for BPO activities.
But I will reiterate…if Realtors are allowed to appraise without license or regulation, then appraisers should be able to sell/list property without a license.
April 27, 2007 — 10:41 am
Greg Swann says:
> What if consumers could choose unlicensed real estate sales people….or unlicensed doctors, lawyers, etc., etc?
That would be Capitalism. I’m all for this. The opposite of Capitalism is crime. I’m against that.
> But I will reiterate…if Realtors are allowed to appraise without license or regulation, then appraisers should be able to sell/list property without a license.
Check. Let’s do it that way. Everybody wins, especially the consuming public. They won’t be forced to pay taxes for bogus “regulation,” and, if they shop wisely and well, they will pay much less for a much better product. This is how Capitalism always works, and this is how crime never works.
April 27, 2007 — 10:52 am