I live in a rural part of Missouri, The town the subject is in, is a small community, a non conforming area

Subject is flanked by commercial property, the back yard is back up to a bank parking lot and the south side has storage units with 2 extra units sharing the subjects driveway, the neighborhood homes are old

and not maintained well. The average sales price $85,000 and that is for newer properties in newer subdivisions on the outskirts of said town. This home was built in 1940 and I had to exceed my distant guidelines.

My opinion was $65,000 for a 30 day sale and 70-$75000 for 90-120

Asset company didn't like that opinion, suggested adding 2 homes one listing and one sale, priced at $100,000-$120,000 and now there asking me to justify, in other words bring my price opinion up.

I explained  my opinion in an addendum and they still want me to lie.

Do you lie or keep peace with the asset company ????

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  • I would look at their comps and see if they are viable.  If not, I,too, would stand my ground.  Your integrity and ethics are more valuable than a listing.  I would not inflate values just because they ask you to.  Just my two cents worth.  I have been an asset manager and Sr. Asset manager and we just got a third opinion of value. There are variances they have to abide by and maybe they have an appraisal and now your opinion that does not fit within that variance.  Again, they probably have the option to get a third opinion.  It is extremely unethical for them to ask you to inflate value.  You might suggest they get a third opinion.  That would get you out of the hot seat.  

  • don't lie to them. This is a tactic that many companies are pulling to try to come up with phony values. I stand my ground. It is also illegal for them to suggest that you improve your value or change it, but they are doing it anyway. if you get this listing they will overprice it and you will lose money and time on the listing.  Stand your ground and explain in detail. Many of these companies don't know what they are doing.

  • Neither. You re-explain. Tell them you will consider their comps if they come from the same mixed use neighborhood, etc.   Reiterate. If you let them compromise your good work, you'll lose your self respect.  Especially for a BPO company and whatever fee you get. If it's an asset company and a listing is at stake - the same thing applies. If you get the listing at their value, you can prove your point. 

  • They basically want you to lie. They will configure the parameters (i.e. unrealistic range limit for distance, age, GLA, lot size, etc.) to force a particular valuation. Once it has been shown that it is impossible to work within the given range specifics, they will then suggest using mostly unworthy comps just to reach a value they want. We know the area, but somehow "quality control" knows better. So where is the independent element of our opinion applied. In my observation, the valuation has to meet the end client's demand. 

    One particular company repeatedly refers to the area as being urban (to limit the distance to 1 mile) though the area is indeed suburban (which would permit a 3 mile search radius).  I remember doing price opinions (and getting paid upwards of $75.00 per!) and not having to do the ridiculous adjustments, which always end up throwing my numbers off! It is too time consuming for the amount of work required; too time consuming in waiting a month to be paid; and I absolutely refuse to do any work for less that $40.00, which is in itself an insult! All to hope that the report is not returned for a revision.

    God bless you people who continue to perform bpos for free?! hoping to receive a 1% listing commission. After submitting a report this weekend, I have come to conclusion that it is time for me to leave bpo business alone and focus on traditional real estate activity.

          

    • Thank You all, I did as you all suggested, stayed true to myself, so far it hasn't come back, but it's only been a day. Will let you know what happens or if I get paid............. Thanks for answering ............

    • I have upped my minimums on reports outside of urban areas and I will no longer be doing any Auction listings.  I am doing more fair market listings and expanding my brokerage.  I hope to be out of REO within 3 years. It is no longer profitable.

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