Senate Bill would define BPOs in licensing law

The Pennsylvania Association of Realtors® is working on Capitol Hill to allow real estate licensees to conduct Broker Price Opinions (BPOs) under certain criteria. Senate Bill 869, sponsored by Sen. Robert Tomlinson (R-Bucks), would allow Pennsylvania to join 45 other states that currently allow Broker Price Opinions.

“It’s important for Realtors® to understand that while PAR is working to have BPOs defined, it’s still not legal for agents to do them,” according to Hank Lerner, Esq., PAR director of Professional Practice. “Until Senate Bill 869 is passed and signed by the governor, real estate licensees cannot conduct BPOs in the Commonwealth. Once the law is changed, BPOs still will not be permitted for mortgage purposes. A certified appraiser must conduct a full appraisal for mortgage originations.”

Recently, the Pennsylvania State Board of Certified Real Estate Appraisers published a temporary regulation prohibiting appraisal management companies (AMCs) from ordering BPOs as a result of the AMC registration act. AMCs and real estate licensees could be fined and/or prosecuted if they conduct BPOs.

PAR will continue to advocate for Senate Bill 869. PAR President Bette McTamney said, “We believe that BPOs help the real estate market react quickly and cost-effectively. They provide critical information for decision-making and have been widely adopted as a tool in the asset management industry due to their timeliness and accuracy.

“We’ve heard from many Realtors® who decline requests from financial institutions for BPOs because they aren’t allowed and those members support the BPO change in the licensing law,” McTamney added.

PAR is working with the Real Estate Valuation Advocacy Association (REVAA) to advocate for SB 869. REVAA’s member companies work with real estate professionals who are knowledgeable about local markets and customs in the development and delivery of their services.  REVAA is a national real estate valuation industry trade association that promotes education, high ethical standards, political awareness, and the professional development of the real estate valuation industry.

Consumers and financial institutions have been hindered from receiving cost-effective and critical information often used in the distressed property market because Broker Price Opinions (BPOs) are not allowed in the Commonwealth. BPOs have been widely adopted as a tool in the asset management industry with more than 10 million BPOs performed annually across the country, including Maryland, New Jersey, New York and Ohio.

PAR believes that consumers, homeowners, the mortgage lending industry, commercial real estate and the economy as a whole are best served when a diversified array of real estate valuation products and tools are available in the marketplace. With growing complexity relative to real estate valuation in today’s challenging market, it is vital that end-users and decision-makers have the opportunity to benefit from the use of the most appropriate valuation-related service to meet their specific needs.