BROKERS PRICE OPINIONS ARE VERY VALUABLE WHEN ONE WANTS TO LIST HIS/HER HOUSE. IF THE BROKER IS VERY CAREFUL, HE/SHE WILL TRY TO CONSIDER THE BEST PRICE TO PLACE ON THE SUBJECT TO CREATE A WILL TO BUY AND THE HIGHEST PRICE THAT A SELLER WOULD LIST WITHOUT OVERPRICING TO KILL A BUYERS WANT. SOMETIMES THE BROKER WILL UNDERLIST THE PROPERTY FOR A QUICK SALE. THIS IS INTERESTING IN THAT THE BROKER IS TYPICALLY PAID A COMMISSION ON THE SALE. BY UNDER PRICING FOR A QUICK SALE, THE BROKER IS ACTUALLY CUTTING HIS/HER INCOME IN SELLING AT A REDUCED PRICE.
IN MISSISSIPPI, BPO'S ARE LISTING TOOLS ONLY. IF YOU PERFORM A BPO FOR A FEE, THEN IT IS CONSIDERED AN APPRAISAL AND HAS TO BE COMPLETED IN A MANNER TO PASS THE UNIFORM STANDARDS OF PROFESSIONAL PRACTICE. (USPAP) AN APPRAISER IS A DISINTERESTED THIRD PARTY AND THE OUTCOME OF THE VALUE DOES NOT AFFECT THE INCOME OF THE APPRAISER AS HE/SHE IS PERFORMING THE WORK FOR A STATED FEE. THE APPRAISER CANNOT GET A FEE ON A PERCENTAGE OF THE OUTCOME OF A VALUE. THERE ARE MANY REASONS WHY A CERTIFIED APPRAISAL IS MUCH BETTER THAN A BPO BUT THIS MATTER OF THE APPRAISER NOT BEING A PARTY OF INCOME ON THE OUTCOME OF THE VALUE CONCLUSION IS A GOOD REASON WHY ONE SHOULD GET AN APPRAISAL VERSES A BPO. MORE ON THIS LATER......