America's Largest Social Network for Default Real Estate Professionals
I was contacted by Altisource/Ocwen some time ago as they needed more REO brokers for an increase in listings (I see they are now getting the properties I used to get from power REO) however the only requests I get are for bpos for $40.00 minus $1 for using the website! I did 1 but found it took far too long as they want previous history on ALL comps. Obviously some brokers are doing these. Just wondering how long it takes to do a report as it seems a lot of work for the fee to me. Also no listings todate. Valuation vision lite orders are also too time consuming for the fee, and main street property inspections for $20 are not worth doing either as they are more involved than just uploading photos and making comments on condition etc. LPS are also adding extra requirements for uploading mls sheets which is time consuming but no increase in fee. Thoughts?
I know what you mean Neil....I have been doing BPO valuations since 2008...I can say I am somewhat of a valuation expert,,when I started doing BPO's for Altisource it was in the hopes of gaining some REO listings,,,but what a nightmare,,their online portal is complex and very detailed...but then when I would complete the perfect valuation,,,with great supporting comps...they would send the order back to me for corrections,,asking me about "why I didn't use this comp or that comp"...then I would have to go back and enter detailed comments about why I didn't use those comps and that the ones I selected were the best,,,It got so frustrating that I have quit doing orders for them, but they keep sending me request. Other BPO mills have started doing the same,,so I used to make about from $7500 - $9600 a year doing BPO's...now its about $1200 or less PER YEAR!! They have been a waste of my time for over a year now and currently I am just doing FREE BPO's for some AM's in he hopes to stay in good graces with them for the scraps of REO's that have diminished over the past 18-24 months. If they want detailed BPO's I say let them pay for appraisals. Agents need to step up and stop being BPO bitches!!!!
I first started doing BPO’s in the early 1980’s when they were done as a courtesy (no fee) for my REO clients. In those days, we did not have email, internet, MLS photos, or digital photos. It was not unusual for me to spend $20 to $30 dollars (processing film for the BPO, including all the comps, overnight mail, etc.) over and above the cost for gas and time. However, I would receive REO assignments at the rate of about 10 BPO’s per 1 listing assignment and wanted to do as many as I could get. This seemed to hold true until about 5 years ago when I started doing a much higher volume of BPO’s for each listing assignment, but I would receive $75 to $125 for the BPO’s which helped to offset the time spent on the BPO side.
Over the past few months my REO assignments have gone to nothing, but I continue to receive a good number of BPO requests. As I receive the calls, I let the person know that I would be glad to do the order if I will be considered for REO assignments. I always receive the same response – they do not do REO assignments.
I cannot show a profit on doing a BPO for $50, so I have not done any for several months. In my area of the country, I can easily spend $15 to $20 in gas along with an hour or more travel time, several hours locating comps, and another hour or two completing the report. Since many of the orders are in rural areas where ideal comps do not exist, I end up with QC issues and spend a great deal of time re-explaining information that is already contained in the report.
I would like to get back to the old days of doing BPO’s for no fee and receiving REO assignments. I really like doing them and it tends to keep my knowledge of current market conditions sharper.
I used to do a good bit with Ocwen. At one time I kept multiple listing going from them. But, the language barrier, the slow payments, constant questions and clarifications for charges and as others indicated, the "small charges" that added up to a bottom line of about 1% commission did me in. I rarely get a listing now from any REO source.
Jesse, you can correct me on this, but it seems the asset companies are going to a small number of agents that are willing to bankrole the upkeep for 90 days or more.
I'm happy running my BPO business and would like to increase my numbers. But, like Neil indicated, too many are requiring too much work for too little pay.
If I get multiple hits from Mainstreet at one time, I may take them for the $20 if I'm not busy. It keeps my wife/assistant busy then. They want way too much for a $20 fee. What I don't understand is the reason for these. Most of the assignments I get are for homes that were recently bought by a certain investor.
I've also been getting more commercial assignments. These pay well but are a lot more work and require Loopnet subscriptions. My perfect BPO world would be a full load from Clear Capital and I could wave bye bye to all other companies.
Bad Broker - BAD!!! - btw - why do you run them through the broker anyway? Just do the billing address personally. Most will cut the checks that way & have no problem.
In CA the broker can if they desire take a agreed upon percentage of the agent's BPO's. I am a former real estate appraiser and still am a licensed real estate broker and prior to the licensing of real estate appraisers in 1992 the broker did not have any legal recourse to take a percentage for what the broker may determine that I used in copy paper, ink and use of the companies computer and using his office as my appraisal office....Normally the errors and omissions for the real estate office did not cover the BPO or the appraisals using the brokers E&O insurance. So by getting paid directly from the BPO company in CA is a no, no situation. That is if the BPO agents broker agrees to hand over all the checks or to charge as by real estate law the checks go to the agents brokers office. Check with the broker and see what his/hers E&O insurance covers.....
I get several BPO requests from Ocwen/Altisource almost every day. No way would I do one for $40. I think you can accept conditionally and request a higher fee. Not sure. $40 is insulting so I never tried. For the last few weeks I have been writing down the addresses. I wonder if it would be worthwhile prospecting the list.
ALTISOURCE/OCWEN????? RUN FOREST, RUN!!! I discount ALL of my valuations by 20% whenever these guys are involved. Banks will figure this out once they realize they are getting what they pay for. VA fired 'em, what does that tell ya?
Over the years I have listed properties for Ocwen -- mostly VA properties. Never really got many requests for paid BPOs, we all like the "free" ones we have to do when we get the listing. A couple of years ago the BPO requests started, and when I saw them using an Oklahoma based broker except in very rural areas, I stopped working them. Their system of "no service" listing broker, does make for opportunity. Their properties are so poorly managed they sell way below market.
What do you mean? You value the properties by 20% under actual? How do you justify it with the comps?
The old Mainstreet (forget the new name) and Proteck both have a book to fill out. Not sure it justify having that many photos to upload, mls, and county records. I think their inspection rpt pays $10 (not a typo ten bucks) and they ask question what the estimated value will be....
Apparently there are enough agents hungry and orders will disappear quickly.
These hungry agents are losing money, and hurting our industry. It's been said 100X, just say no to Mainstreet and all other BPO companies that offer similar fees. If they can't do us a favor, leave the business. There are a lot of fast food businesses that pay more hourly.