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Time to Blog this morning ! What about BPO?

I have done a bunch and happy to complete them even the reward is questionable.
I have done my due diligence and forwarded as much information relevant to the subject property enough to determine a value, listing price and what is necessary to help the decision maker.

I have completed over 800 of them as residential and commercial.
It takes some time by going on site, download the photos,
pull the comparable and finally complete the order.

BPO in 20 minutes ? Probably but don’t expect too much comments and research.
It takes definitely more time. Some websites are easy to complete,
other take a long time to even upload the photos.

Easy task to complete when it is a condo with same properties around recently sold
and listed with similar amenities. Same criteria apply with SFR as tracking home
from large development. I known many BPO agent are using software to ease
and accelerate the process
but I believe that I don’t have a sufficient volume in my area,
and we don’t have too much large development with tracking home anyway.
Each property is often unique and requires more twisting
to pull appropriate comparable and definitely more adjustments
and comments therefore more time.

I have seen a few changes since I have completed my first BPO.
In a few words increase of task as more time to be completed
and fee reduction translate by less Dollars.
I am wondering if I am the only one to feel that way.
More time is required for less money to be paid!

I am trying to think about other industry such as my dentist charges me
for annual exam which is not the same cost if he has to fill up some cavities,
or I pay some money to my mechanic for oil/filter change, and the bill is increasing
if he has to do the brakes! That makes sense to me.
Apparently, that does not apply to BPO: the more you do and the less you will make ! (Recent Old Republic order at $ 30!)

The last BPO I have completed was very unique as large lot for the area,
multiple structures onsite, illegal units, unpermitted and not completed excavation…
and a lot of photos…. I have searched with planning dept, uploaded tax record,
Tax Assessor map, permit summary from planning dept. in addition of all the
other required task…. This is not anymore $ 50 worth!

This is getting more spicy when I did pull the comparable as
I have found a couple of them as Bank Owned for which I did struggle
to get little money for BPO and realize it is listed by an agent located
in another county within more than 2 hours drive round trip.

Back to office, I drove in front of a multi units which I knew to be listed
by one of these agents. This one too I have done a $40 exterior BPO.
Listed at $ 465,000 it is easy to understand a better reward
than to complete a glamorous BPO.
I am totally devastated to have seen this property:
no sign for sale, no lock box while it is mentioned on MLS,
old tire and car parts in the yard, weeds at glance, debris and trashes,
windows covered by old fabric/plastic…
all to mean “Please don’t come, don’t buy!”…
Few searches back to the office to realize 33 DOM… no open house.
ASSET MANAGER: Do you known about that ???

I still believe strongly that everything regarding the default industry is around BPO.
Nothing is done without a BPO in other words.
This is a necessary and valuable tool to maximize the
recovery of asset.

I am perfectly OK to provide the best service and
I am also OK to complete a reasonable amount for free
if I have the assurance to have some listing.
Clients, asset managers, valuation companies and lenders are expecting

a professionalism, ethical and honest service.

Does it mean I have to do that for the glory?

Does it mean I have to starve with $40 fees?

Does it mean I have to be insulted to see these asset listed by other who don’t care?

Does it mean I am the only one to feel that way ?

Views: 18

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Comment by Cindy Billman, CDPE, SFR, HAFA on May 30, 2010 at 8:23am
I have said this before - Asset Companies are the ones making the money - i.e. when I worked for a mortgage company we outsourced about 70% of our portfolio to asset companies. In the contract with them - we paid $125 for an exterior BPO and a $150 for an interior - we had no control of what the asset company paid to the agent they used to do the BPO's. We also paid a 7% commission, again, no control as to how the asset company paid the realtor. We, also, paid a transaction fee of $750 to $850 per file on top of reimbursement fees for utilties, repairs, evictions, etc. Do the math! Back in the late 80's and early 90's I received $75 for an exterior and $100 for an interior and they were not near as detailed as they are now. A BPO is just that and not a mini appraisal that is now required.
Comment by Celine M. Johnson on May 29, 2010 at 10:32pm
I feel your pain 100%
Comment by Michael Johnson on May 29, 2010 at 5:44am
We have our regular accounts we work with, I do try to pick one a week between the other vendors just to stay on their distribution list. Needs to be a fairly easy report to sink down to $30 for sure!
Comment by Johnny Wariebi CDPE, HRC on May 29, 2010 at 1:20am
If we continue to pass on low priced BPO's, the BPO companies will get the picture. But I'm sure some new agent will accept those BPO.
Comment by Kristine LaDue-Klink on May 28, 2010 at 1:08pm
I've been passing on many requests as well. I would rather turn one down than spend a whole day driving, getting photos, and then guessing at which comps to use because I don't know the market area. You live and learn.
Comment by Maria Castilow on May 28, 2010 at 11:10am
I started refusing BPOs that are underpriced. I also saw Old Republic send out requests for BPO's for $30. The sad part is that many of the BPOs being done by Old Repbulic are probably being done by less experienced BPO agents who are trying to get into the business. I'm not trying to generalize the experience of the agents taking the BPO's but you get what you pay for.
Comment by Steve Adkins on May 27, 2010 at 3:35pm
I share your pain 100%!

Lately I've been getting requests as far as 40+ miles from my house or office and they only want to pay $50? I passed!

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