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I've been following Cindy Billman's Discussion "REO/BPO COMPANIES THAT DON'T PAY" for a couple of years now and I've come to the conclusion that it can't be about the money because it seems that a lot of us are either chasing our money or not getting paid at all. Is it because we think by doing BPOs we'll get REO listings? Is it because we just love doing them or perhaps because we find it easier than actually listing and selling real estate?
I'm just curious as to what compels and drives the agents that do BPOs to continue doing them and I thought that this may make for an interesting discussion.
I think it is possible to do well doing BPOs. The key is working with the good companies that pay, being firm on the fee you will do work for, and being fortunate enough to be in an area where agents aren't bidding each other down to peanuts just to get orders.
I like the freedom of doing BPOs. I can make a decent living working from home, doing a bit a driving and filling out a form.
This is illegal to let someone other than the assigned broker to do a BPO. If your using this company for doing your BPO work hope the company your working for does not find out.
I do BPOs so I can stay in touch with the market trends in pricing and supply. The last 5 years have been crazy and it is the best way to know the prices in your coverage area market. I used to think maybe I would get REO listings if I did a good job but now I use it to enhance my knowledge while getting paid to break even.
I tell our agents this:
You do 2 a day 5 days a week. That is 10 a week and each one, with drive time takes about 1 hour.
So you have 10 hours a week in BPO's to make $500 ($50 per BPO)
If you invest 10 hours a week into your real estate business and sell one extra house a month you will make on average $3,300 (average commission).
Do the simple math. you make more selling 1 extra house a month
BUT people do them because:
1. you don't have to deal with picky buyers or sellers
2. you set your schedule, not your clients
3. and work from home
Seriously? 1 hour to do a BPO including drive time? How can you go take photos, get them on your computer, look for the right comps, print them out, save the comps photos, and then try to fill in the form all in 1 hour. I put in no less than 4 hours and I charge $125 for an exterior. I sometimes feel I should have charged more. Just waiting for everything to upload is another story. Does anyone else agree?
You are doing something wrong, it takes me 45 min to pull comps fill out form and upload pics. Drive time, I usually do 3-6 at one time so it is cost effective, if I were doing one then I would be losing money.
4 hours to do 1 BPO? You might want to look a new system of completing the work.
It reads good, but I haven't gotten one done in an hour ever.
If it's 15 minutes from my house, that's 30 minutes gone with 30 minutes left.
upload the photos, 35 minutes gone, 25 minutes left, locate the comps, 20 minutes.
55 minutes gone, 5 minutes left, print the comps, transfer comp photos into webpage,
tic...tic...tic....toc. (and that was best case scenario)
Douglas, I think you kind of nailed it! At any stage of doing BPOs over the years I believe we have all pondered the same thoughts! I have stopped doing assignments for some companies because after so many years I kept seeing the Listings go to the same agents an yet if they call months later and ask I will sometimes do the BPO anyways! I guess it is that distinct hope that maybe just maybe this will be my time to actually receive a Listing!
Sad but true!
Do you really want the listings 80% of them are trashed when they leave
I do one occasionally when it is from a good payer. I do occasionally get a listing but not from the
BPO mills. There are bulk investors who need our advice before bidding. They buy to flip, so listings
are available. Doing a few, getting paid or getting listings can keep our skills sharp. Relying on BPOs
for a living does not interest me.