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What's the next big thing with BPO/ REO's industries ?

As an agent with 10 years experience with BPO/REO companies I'm finding the fees and commissions getting extremely low. Just last week I had several requests from companies I have worked with for years offering fees as low as $35.00. I did request fee changes for $45. to $50. which I still think is low. I did not get one order. I have a license, continuing education, MLS and board dues  not to mention things that go with being self employed. Office, gas, health care, paper computers and the like. So I think we deserve a fair fee. I also understand everything changes and we have to evolve to the ever changing market. With that being said my question is this? What is the next big thing for agents that like to work in this industry, providing services. I need a fee that can feed my family? They like to eat to! Maybe make video home tours, go back to working with clients in the traditional market? Any suggestions before going broke slowly?

Thanks in advance for your feedback.   

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Comment by Craig A Haass on March 31, 2017 at 1:37pm

Thanks for your comment Sam! However I do not complete BPO's as my sole income. It represents a small, but appreciated part. It keeps me busy and helps to let me understand what is happening in my market. I also work with REO's, property preservation, property management, short sales, as well as fair market sales. The market is extremely strong with buyers. Which is a good problem to have. The problem in my market?  Inventory is at historic lows! I as every realtor in my area are marketing for new clients. When you get a listing that is priced correctly. They sell in just a few days. Often with multiple offers that inflate the actual value which is going to create future problems! I also don't care what the BPO companies charge their clients. I just want my part to be fair. Your office I assume gets part of your commission? It's up to you to negotiate what percent they receive. Right?    

Comment by sam sahba on March 31, 2017 at 12:04pm

BPO is never and should not be a way of income but side money, these companies charge from 150 to 250 and they pay realtor 35 to 50 so they make money not the realtor, best think is to get listing and make the real money, BPO is getting jammed by lots of new realtors who are trying to make it in this business, I may do BPO if its near my office and pays well and if I have time otherwise forget.

Comment by Edward J Wisniowski on March 27, 2017 at 10:03am

Craig, you said it all. In time with this trend even Nicole's system will not be much of a help. There are companies overseas that are providing comparable services for a minimal fee. I suggest you look to listing and selling if you want to remain in Real Estate. Use your hard end skills to help those that will appreciate your knowledge and training. Cheers and good luck, Ed

Comment by Nicole Ocean on March 23, 2017 at 7:23am
Sam Shueh, are you currently using any BPO AutoFill software right now because the companies you mention work fine in our BPO software. They aren't blocking the use of it but some have a "Comp Selection" tool that's built into their forms like Assurant/EML that most folks don't want to use because it doesn't always work nor does it fill out more than Basic comp info, it won't do the Defaults like design, style and view or comments like the Subject, Neighborhood or General market comments. Our software users prefer using our AutoFill software for all of the companies you mention because our system fills in 90% without an issue. BPO mills shouldn't tell their agents/brokers that they can't use Automation software to help them complete their BPO orders and they should have no problem with it when it's used responsibly.
Comment by Michael Weaster on March 20, 2017 at 12:22pm

Dick, Got to love your answer my friend. In my market they are trying to get agents to do them for $30.00 some even lower, I just ignore them however somebody is taking them so like Dick says, volume in numbers.  Problem is in Houston you can spend $30.00 just in gas going from one to the other. 

Comment by Richard D Stanton on March 20, 2017 at 11:32am

You will have to decide if kicking waste baskets is more productive than low fee BPO's. For example if a $35.00 fee is a 100%ROI the only question you might ask is how many more can I get. On the other hand if you are wrapping a $10.00 bill around everyone you send out then run like a rabbit. Do a cost analysis, then make a decision.

Comment by Craig A Haass on March 12, 2017 at 11:00am

Thanks for all the comments. Any suggestions on the best place to promote my business online? I will also look into automation software. I did a quick search found a you tube video. It however seemed dated. Suggestions on new or best companies to check out? As far as the BPO companies I worked with now and in the past. Name one!  At some time I've completed an order for them. From Clear Capital, Single Source, Residential Real estate Review, Pro Tec, Nations Valuation, Consolidated Analytics, Res.net and Do Hard Money to name a few.  Ninety five percent  of my orders are completed on time. I also have an occasional run in with a reviewer. Sometimes I wonder where the reviewers come from!  If they have ever worked in the field!  How they know my market better than me. Other than that no problems completing orders. I enjoy what I do.

Comment by CECE FOX on March 11, 2017 at 9:33pm

There is no next big thing.  It's always the same and everything comes back around eventually.

While I don't need to at this point in time, traditional listing and selling always works.  I lost a big BPO client last year to the tune of $10,000.  It hurt my bottom line big but my REO listings this year are starting to make up for it. 

Comment by Nicole Ocean on March 11, 2017 at 7:02pm
Hi there Craig,

Although, your dilemma is not new, the solution is right under your chin. Automation and systems are the keys as well as what these items can do to help you not only survive but thrive in your BPO/REO business. But even with BPO software, if your turn time is slow and the quality of your finished order produces low scores, [and I'm not saying that this applies to you or how you work, because I don't know you, I'm just generalizing :) ] then technology won't solve your problems. So focus on what you can change instead of the fees that are offered. You might just price yourself out of work by asking for higher fees.

Which companies are you currently getting work from?
Comment by George Avakian on March 10, 2017 at 10:07pm

Bankruptcy

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