NEW!!!! Atlantic County Focus Group - 6:30pm
Location: Shore Diner - 6710 TILTON ROAD Egg Harbor Township, NJ 08234
KICK OFF MEETING IS FREE TO ALL!
Meeting the 3rd Thursday every month
Appraisals vs BPO (Broker's Price Opinion)
In today's world of Real Estate Investing many Homeowners and Investors turn to a Licensed Real Estate Agents or Brokers for a BPO (Broker's Price Opinion) to determine Fair Market Value of Real Estate.
David Kaytes, State Certified Residential Appraiser in New Jersey and Pennsylvania | Metro Residential Appraisals, Inc.
Phone: 609-280-2268 | www.metroresappraisals.com | Serving New Jersey & Pennsylvania
Key Distinctions in New Jersey:
- Legal Definition: The New Jersey Division of Consumer Affairs advises that a BPO acts as an appraisal under state law, meaning it can technically be considered the unlicensed practice of appraising unless performed by a licensed appraiser or under specific exemptions.
- Purpose: BPOs are generally used for non-lending purposes like setting a listing price, short sales, or REO (foreclosure) valuation. Appraisals are required for determining fair market value for a number of reasons including but not limited to: After Repair Values (ARV) Mortgage Underwriting, Legal Proceedings, Estate Planning and Taxation purposes.
- Accuracy & Detail: Appraisals are far more detailed, adhering to the Uniform Standards of Professional Appraisal Practice (USPAP), while BPOs are often faster and less comprehensive
- Usage Limitations: LendingTree reports that federal law prohibits using a BPO in place of a formal appraisal for mortgage loans or HELOCs
- Certified Appraiser (The "Valuation Specialist")
A Certified Appraiser is a state-licensed professional who has completed thousands of hours of training specifically focused on the science of valuation.
The "Lender's Eyes": They work for the bank, not the buyer or seller. Their job is to ensure the house is sufficient collateral for a loan.
- Licensed Realtor (The "Market Strategist")
A Realtor’s valuation—usually called a Comparative Market Analysis (CMA) or Broker Price Opinion (BPO)—is based on their experience with what people are actually paying.
Market Nuance: Realtos look at "buyer appeal." They might value a house higher because of a trendy paint color or staging that an appraiser might legally have to ignore.
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Core Differences at a Glance
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Feature
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Certified Appraiser
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Licensed Realtor (BPO/CMA)
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Primary Goal
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To provide an unbiased, objective value for a lender or legal entity.
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To provide a probable sales price to help a client buy or sell.
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Regulation
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Governed by USPAP (Uniform Standards of Professional Appraisal Practice).
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Governed by State Real Estate Commissions & NAR ethics.
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Vested Interest
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None. Must be a neutral third party with no stake in the deal.
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Vested. Often has an interest in the property selling (commission).
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Legal Standing
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Legally binding for mortgages, taxes, and court cases.
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Generally not for loan origination; used for guidance or "informal" needs.
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Analysis Level
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High: Uses specific math-based "adjustments" for every feature.
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Medium: Uses market "feel" and local competition trends.
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Come out this meeting to discuss in depth the differences and inaccuracies to help propel your Real Estate investments
David Kaytes, State Certified Residential Appraiser in New Jersey and Pennsylvania | Metro Residential Appraisals, Inc.
- Phone: 609-280-2268 | www.metroresappraisals.com | Serving New Jersey & Pennsylvania
- Expert in Divorce, Estate Mortgage Transactions & Tax Appeal property valuations.
- Serving New Jersey & Pennsylvania | Expert in Divorce, Estate Mortgage Transactions & Tax Appeal property valuations
Time: 6:30pm to 8:30pm
Cost: Members attend free, visitors pay $20
LOCATION: Shore Diner - 6710 TILTON ROAD Egg Harbor Township, NJ 08234
Please RSVP so we can give the restaurant a good head count
Please plan on ordering something from the menu --- Thanks!
Focus Group Leader David Ingemi: David brings over 20 years of experience in real estate. He began his career as a lender and eventually transitioned to Title Insurance. He has since acquired his property and casualty license. Legacy Consulting Real Estate Services - WWW.CONSULTINGLEGACY.COM | Phone: 856-979-9545 | dave@consultinglegacy.com
Not a member currently? Why not join as a monthly member for $20/month and enjoy all benefits of membership -- FREE meeting attendance for 30 days and participate in our members only online networking chat forum. AUTO-RENEWS until you cancel.
SJREIA Disclaimer
www.SJREIA.org () does not give legal, tax, economic, or investment advice. disclaims all liability for the action or inaction taken or not taken as a result of communications from or to its members, officers, directors, employees and contractors. Each person should consult their own counsel, accountant and other advisors as to legal, tax, economic, investment, and related matters concerning Real Estate and other investments. more...