Here
is an idea for banks that deal with lazy BPO agents!
For those of you who have dealt
with short sale listings
have all had that experience where the BPO came back way higher than
the home
is really worth. Why would the BPO agent bring back a high
BPO to the bank?
Well, one of the reasons is that I think they are hoping the bank will
foreclose and they will get the listing.
But, why doesn’t the bank
question these agents to the value
of these properties. I think one thing that would stop
these bad BPOs is to
have the BPO agent list the property at the BPO price. Then when the
property
doesn’t sell at that price, they reimburse the bank the difference
between what
they listed originally for and what it actually sells for.
The banks do this, this will stop
those horrible BPO
drive-bys. I had a listing that the BPO came back on that
showed comps of
completely remodeled homes over a mile away in newer housing
development. But,
this house was built in the early 1970s, still had the original carpet
and was
torn down to the studs. Was it worth what the BPO showed it was worth?
Not at
all, it couldn’t even qualify for a loan unless it was a 203k loan.
But, this agent did their
drive-by and clearly it was worth
$50,000 more because the outside looked OK. I sent the
pictures to the
negotiator and said “How could your BPO agent say that it is worth the
same as
this house?” (Sending the pics of one of the remodeled comps)
The bank agreed and ordered a new
BPO and this time, the BPO
came back right where I said the price should be. So, laze
BPO agents, you
aren’t doing anything besides helping lower the property values and
keeping
homes on the market longer than they need to be when you give a bank a
bad BPO.
So, for your sake, I sure hope they don’t take my suggestion.
Todd Clark (broker w/ Ken's Home Team)
Keller Williams Realty
Todd@IFoundYourNewHome.com
Phone: (503)524-9494
Fax: (503)746-9573
I am a licensed Realtor who specializes in Washington County, Oregon and also work in both Clackamas and Multnomah Counties including the cities of Aloha, Beaverton, Canby, Clackamas, Gladstone, Gresham, Happy Valley, Hillsboro, Milwaukie, Oregon City, Sherwood and Tigard. All information contained in these posts are copyrighted and cannot be used without prior written approval authorization from the author me Todd Clark. If you are looking for an outstanding agent please give me a call I would love to help you with all your real estate needs.
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9 Comments on Here is an idea for banks that deal with lazy BPO agents!
Hi Todd, I think the reason they do it is in hopes that they will get the listing and then the banks will drop the price.
Interesting idea, good post!
Hi Todd - For what they're paying for BPO's these days, it's not surprising they're getting garbage results. It's unlikely anyone who takes their professionalism seriously would accept the way that current BPO mills function.
Todd, i hope this is extreme...all of my bpo's have come back on the money with what the agent felt it was worth...no drive bys here!
Laughing out loud at your idea - sheer genius! Pretty sure we won't actually see it happen, but oh my gosh there would be some sadly disappointed (and regretful) BPO agents if we did see it!
The worse is BPOs coming from agents out of the area - who don't the know the area and then get the listings again with little knowledge of the neighborhood.
Hi Todd - I think part of it depends on what the bank asks the BPO agent to do. I was on a list to receive BPOs and the assignments were specific as to whether they wanted a full interior review with photos or if they wanted a drive-by only, with just exterior. The drive-bys paid $25, which sometimes was the cost of the gas, etc to get to the property. And they still expected comps, etc. I took my name off the list because I usually went inside no matter what they said. I had been burned too many times by screwy BPOs on my short sales and I didn't want to turn in one of those!
Todd, I don't understand why the banks order exterior BPO's - PERIOD. In a basic tract home subdivision, a 1200 SF home is a 1200 SF home is a 1200 SF home. What makes the difference in pricing is the interior, the upgrades, the maintenance, the rear year landscaping (unseen from a driveby.) There's SO much to consider that an exterior will not reveal.
However, I've found that the banks start the BPO process at the possiblity the home will go into foreclosure - skipped payments. As everything progresses, they FINALLY get that interior. When they find out it's the type of house you have to tuck your pants into your socks so things don't crawl up your legs, it becomes a whole different story.
Linda - Have been very lucky with no one from out of the area doing the BPOs. But, of course we are a pretty big area so lots of local agents, no reason to bring someone from out of the area.
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