America's Largest Social Network for Default Real Estate Professionals
I have a new situation, I have been completing BPO's now for a few months and just recently while setting an inspection for an interior I was contacted by the owner attorney. the interior met me at the property and gave me a toured inspection. after she had another broker send me a list of comps she wanted me to use. I completed the BPO using my own chosen comps and with the information I was able to obtain submitted the report and it was excepted. now the attorney is again contacting me claiming the report is erroneous because I had not used the provided comps. has anyone come across a situation like this in the past?
No I haven't. But you did the right thing. You provided the comps (and the BPO report) to the best of your ability. The attorney should be knowledgeable enough to know that you must provide your own comps. Personally, I would not respond to the attorney at this point.
Gabriel; I have considerable experience doing some BPOs and I never have had a situation like this. With the additional "chit-chat" from the owner it hardly seems worth the fee. I think I know however that appraisers get this all the time. They are (or at least, were in the past) often harassed by agents and others about the value, if it is too low as compared to a sale price or mortgage amount. In your situation, I wonder if the owner wanted the value to be higher or lower. At any rate, I don't think you should be concerned or have any obligation to take any calls from the owner. That is why it is called a Broker's Price OPINION.
It's called collusion and it's illegal. This is why I quit taking interiors. So many were for short sales and this is a technique that many of these short sale courses teach. In our market 90% of short sales state in the MLS remarks "BPO agents do not enter property without listing agent". I don't have time for that. For a while I just took interiors where I knew they were second opinion for REO but I stopped that too. Too many REO listing brokers in my area are too damn lazy to go check if their properties have been rekeyed and expect the BPO agent to do it for them. You're getting the listing but I should make multiple trips to the property and call and tell you it's rekeyed for a lousy $75-100 BPO fee? I don't think so. Interiors usually pay about 50% more than a drive by but I find I can usually do at least 2 drive bys in he time it takes to do an interior when you factor in access issues.
I've never seen this before, being asked to use other pre-chosen comps for your opinion. You did the right thing using your own. This could have come back to haunt you if you used their comps. It doesn't sound legal to me. I have 28 years selling and almost over 15 doing REO's, and or Trust estates. I would keep written notes in the file about what you were asked to do. Having the owner or attorney at the initial inspection is common if this is an estate, divorce or court ordered sale. Rarely if it is a bank owned property, will the AM attend an initial inspection.
Charlene I have had this happen before, most often with short sales and buyers/agents who want to sell the property for a low value so they can make a huge profit with resale. I had one recently where the agent met me and gave me a list of $100,000 worth of repairs plus comps. Also no lockbox access, it was vacant, but the agent had to meet me at the door and show all the damage to me.
I would let your BPO company know about this. Most state somewhere in their BPO assignment to let them know if anyone tried to influence you in this report.
Yes. You are right Patrick. I do not do too many interiors myself because of the money issue. Since there is more time involved my bottom price for an interior order is $125 for my area (most companies only want to pay $65-$90).
I have done 1000's of BPO's and every once and a while you WILL get an agent or homeowner give you comps. I just smile, take them then save them with my file and to protect my assets I make a note in the BPO so as to alert the BPO company about the attempted price manipulation and advise I have the supplied comps if needed. I have been a NABPOP C-REP certified BPO agent since 2009. There are real snakes out there always cover yourself and report all irregularities to the assigning company. Have fun
most bpo companies tell you to just tell them to contact the bank if they disagree with your value. I would not worry about it, these banks are getting smart and know what some people are doing...it is really a shame that there are a few bad eggs out there still doing things like trying to steer your values. Your bpo company should stand up for you as they do back end checking on your value before they send it to the bank so I would not worry to much about it.
And don't stop doing interiors...if you let attorneys and listing agents bully us around they will find rookie BPO agents that don't know better come in super low and it will kill your local markets values. All it takes is one super low value in a neighborhood to get values to start declining.
Just my two cents. Amy C- Broker in Illinois
tell him you are not a liberty to discuss this with him. HE SHOULD KNOW BETTER.....sleezey attorney
The attorney apparently does not know what he is talking about.
I have had similar situations. You should always use your own comps not comps provided by a 3rd party whose interest may be different from those of the lender. Just do your job and not be concerned regarding the attorney or anyone else.,
I have performed 1000's of bpo's over the last 10 years.
Real Estate 911 Inc