Who Made Those Adjustments On My BPO?

I just received an email from a company that contacted me to complete a BPO on a property. Located on the river, in a rural area. Since it is rural, there are not a lot of comparables. I was worried it would be returned to me since there is a large variance in prices.

After closely reviewing what I thought was a BPO that I prepared, I noticed that "Quality Control" has made $75,000 adjustments on the form as well as a few others.

I was shocked. What is the point of me doing a BPO if their so-called Quality Control department is going to make adjustments? Obviously they know the market much better than I do.

This infuriates me -- I just wish I knew who the client is, because this is just wrong and they need to be made aware of what is going on. It helps give more power to those that think we as agents should not be doing BPOs in the first place. Maybe there should be more concern over what the BPO companies are doing to the reports once they receive them.

I don't know if anyone else has ever experienced this or not, and maybe I am overreacting....it just seems wrong to me though.

I had something similar happen to me twice. I did a BPO on a very large house (for a short sale approval) with recalled LP siding that was failing.... moldy, mushrooms growing out of it, swelling, the whole 9 yards. Naturally, I plugged in the estimate for new siding under repairs (per one of my best clients, who happens to be a siding contractor). I received an email from QC stating that my estimate was too high so they were lowering it and that was that-even though I submitted a written bid for a house that size. Another (this time for a 2nd opinion on an REO) was on a home on a 4 lane, high traffic street, and was surrounded by a mixture of industrial, commercial, and multi-family properties. It wasn't commercially zoned or anything, and was in an area that was severly depressed economically. I explained in the comments that my valuation would be very low due to the lack of desirability of the property, and they kicked it back saying I had to go lower... WAY lower than what I know it would sell for... it would have been at least 30k underpriced. They refused to budge and I refused to complete the order. I'm not cheating a bank out of 30k! Long story long, yes its wrong!

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Comments

Julie Yates March 24, 2010 at 3:57am

This has happened to me too and I don't work for that BPO company anymore. Funny, your name is not removed as the preparer.
Billie Dalessio March 20, 2010 at 9:22am

This is why I prefer an adjustment column. If a comp is similar & in the same area, or even the same street, but overpriced, you can adjust. I have never to my knowledge had QC change a report. I have had them try to sway my opinion, or throw out the best comps for ones that they suggest. I have had them send me a prior report and have me explain why mine is better. It's extra work (for free). At times I feel like they're robotic, when they ask someting that is already clearly explained in the comment addenda.
Michael Howard March 19, 2010 at 2:08pm

This happens all the time. Several of these companies are not looking for reality but continuity in the comps.
Sam Shueh March 19, 2010 at 6:51am

Most of the time companies asked you to find comps to justify their sale. Short sales went for a fraction of comps and QC will question why your value is too high. If you are firm they will let it go. Sometimes they call ask permission to adjust 5K to justify a sale. Only you are allowed to change the valuation as your license and insurance are tied to the estimate. You can call QA supervisor that adjustment need your seal of approval. If they change it often, I suggest you not do anything for them. There are virtually 50-75 companies wanting your expertise. Why have one ruined your reputation.
Julie Baldino March 18, 2010 at 2:50pm

I had something similar happen to me twice. I did a BPO on a very large house (for a short sale approval) with recalled LP siding that was failing.... moldy, mushrooms growing out of it, swelling, the whole 9 yards. Naturally, I plugged in the estimate for new siding under repairs (per one of my best clients, who happens to be a siding contractor). I received an email from QC stating that my estimate was too high so they were lowering it and that was that-even though I submitted a written bid for a house that size. Another (this time for a 2nd opinion on an REO) was on a home on a 4 lane, high traffic street, and was surrounded by a mixture of industrial, commercial, and multi-family properties. It wasn't commercially zoned or anything, and was in an area that was severly depressed economically. I explained in the comments that my valuation would be very low due to the lack of desirability of the property, and they kicked it back saying I had to go lower... WAY lower than what I know it would sell for... it would have been at least 30k underpriced. They refused to budge and I refused to complete the order. I'm not cheating a bank out of 30k! Long story long, yes its wrong!

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