To BPO or not to BPO , that is the question!!

By
Real Estate Agent with RE/MAX South Shore Realty SL696575

For several years I have performed BPO's for an asset management company in the hopes of getting REO properties.  I have done hundreds upon hundreds of BPOs and only had about 6 REO properties, most of which were more trouble than the measly commission I received on them.  I think the BPOs are taking away from the rest of my business and that I could be making more in the long run by focusing on listing and selling but just can't quite seem to give it up.  Those little checks always seem to come in when we really need a little extra!  I hate to burn the bridge for the connection I have but think I should focus more on business.  is there a way to put yourself on "hold" with these asset companies without burning the bridge?  

Posted by

Amy Soto

RE/MAX South Shore Realty

813-433-6556

http://www.RiverviewHomes.com

 

 

 

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Rainer
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Bill Travis
Captain Bill Realty, LLC - Gilbert, AZ
Broker/Owner

Something you can do is hire someone to do the pics for you. If you advertise on Craigs List you'll get hundreds of people willing to do them for a flat $10 per house whether it's inside or outside.

Just train them to do it right. That will save you a lot of time.

Sep 14, 2010 01:50 AM #1
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Debbie Laity
Cedaredge Land Company - Cedaredge, CO
Your Real Estate Resource for Delta County, CO

Remember most BPO companies that pay you are mills, and just need the reports and aren't going to assign listings. I do a lot of BPOs, but I treat it like a second job. I do them after business hours and on the weekends. You're right!, those checks do come in handy to help pay the monthly bills.

If you want the REO listings, you have to sign up with asset companies that handle bank owned properties. Remember they won't pay you for the BPOs you do for the assets you are assigned.

Sep 14, 2010 01:51 AM #2
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Debbie Laity
Cedaredge Land Company - Cedaredge, CO
Your Real Estate Resource for Delta County, CO

I"m curious...how many BPOs are you doing in a month?

Sep 14, 2010 01:52 AM #3
Rainmaker
115,235
Kimberly Thurm
Berkshire Hathaway HomeServices KoenigRubloff, Naperville, IL - Naperville, IL
Broker / Relocation Consultant ABR, CRS, GRI, SFR

Hi Amy,

The ones that you did, the six, that were more trouble than they were worth....  What if you had 25 or 35 of those listings?   This type of business can easily take over your whole business.  Then would it be worth it?  Re-keying, hold overs, water in basement, mold, trash out companies, bug infestations, asset companies, evictions, getting all the required bids, carpet missing, pictures, paperwork, squatters, uploading data, and yes the asset manager wants the house in the MLS today.  You will not have time to do any other type of business. -- I see this from an agent in my company.  Sometimes, I think it is be careful what you ask for. 

Sep 14, 2010 02:00 AM #4
Rainmaker
3,081,014
Scott Godzyk
Godzyk Real Estate Services - Manchester, NH
One of the Manchester NH's area Leading Agents

You have to pick and choose which companies offer listings and which just complete bpos with no chance ever of a listing because all they do is complete bpos. I have so many requests to complete them that i have to choose the ones that are giving me listings first and if i have time can fill in my day by accepting bpos from the bpo mills. Completing bpos is an art, a science and requires great knowledge of the neighborhoods you are completing them in as well as patience and quickness to make it worth while.

 

Bill although i love your idea to have others take the pictures for a fee, i could double my production, however it defeats the bpo's purpose of having the agent who completes it, view the property to include honest answers and comments about the properties condition an untrained eye may not notice if just taking a picture for a quick 10 bucks and on to the next house to take a picture.

When there are so many potential listings on the line to receive, its not worth the risk for me.

Sep 14, 2010 02:03 AM #5
Rainer
14,500
Amy Soto
RE/MAX South Shore Realty - Riverview, FL
CDPE

Debbie,

I was doing about 100 but have dwindled it down to only 5 or so a week.  It drives me crazy that most of the time they decide to assign them on Thursday night and want it back on Saturday.  I volunteer at my childs school for three hours every Friday and Friday afternoon and Saturday are usually prime "showing" times! 

Sep 14, 2010 02:03 AM #6
Rainmaker
703,312
Dan Edward Phillips
Dan Edward Phillips, Humboldt and Del Norte Counties, CA - Eureka, CA
Humboldt and Del Norte Counties, CA

Hi Amy, I do some BPO's in California, but I am very 'picky' about doing them and many times ask for more money than is offered.

Sep 14, 2010 02:04 AM #7
Rainer
14,500
Amy Soto
RE/MAX South Shore Realty - Riverview, FL
CDPE

Scott and Kimberly I think you guys are making me think I should just concentrate on listings and buyers and forget the headaches of the BPO/REO business!  It really is a lot of work. There is someone in my office that does a lot of REO listings and he has been out 30-40,000 at times in bills before being reimbursed.  i am really not ready to take it to the next level like that but also tired of BPO limbo!  This would probably be a good time to sit down and rethink my business plan for the rest of the year and next year!

Sep 14, 2010 02:12 AM #8
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Debbie Laity
Cedaredge Land Company - Cedaredge, CO
Your Real Estate Resource for Delta County, CO

100 a month is a lot. I think my record is around 50. I just did 40+ in July. But I live in a rural area, and we are sparsely populated. We also don't have the cookie cutter subdivisions, and I have to comment a lot on the comps I've chosen. That is a lot of extra work. I also seem to get quite a few over the weekend. I think they want the reports there waiting for them on Monday morning. Sometimes I can negioate with them for a Sunday or Monday AM due time. That helps me out a lot.

Sep 14, 2010 02:13 AM #9
Rainer
14,500
Amy Soto
RE/MAX South Shore Realty - Riverview, FL
CDPE

Dan, I think we just have so many hungry agents here that they pay little and will move right on to the next person!

 

Sep 14, 2010 02:13 AM #10
Rainer
14,500
Amy Soto
RE/MAX South Shore Realty - Riverview, FL
CDPE

Dan, I think we just have so many hungry agents here that they pay little and will move right on to the next person!

 

Sep 14, 2010 02:13 AM #11
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2,191,693
Debbie Laity
Cedaredge Land Company - Cedaredge, CO
Your Real Estate Resource for Delta County, CO

I will say that the REO business has worked for me this year. That's what is selling in our market. It's a lot of work, but I know it won't last forever...at least not at this pace, so I'm going to ride it out. At the same time, I'm also trying to build my fair market business. Yes I'm busy, but when the market finally rights itself, I'll still be here. I got my license 3 years ago...just as the market took a dive and never recovered. So it's been difficult. That's how I started doing BPOs. It helps to pay the desk fees and bills. Then I made a science out of doing the BPOs. Now I have the REO listings.

Sep 14, 2010 02:21 AM #12
Rainmaker
1,228,816
Mary Yonkers
Alan Kells School of Real Estate/Howard Hanna Real Estate - Erie, PA
Erie/PA Real Estate Instructor

Good morning, Amy.  My suggestion is to pick & choose who, where and when you want to do BPO's AND ask for more money.  Good luck. 

 

Mary

Sep 14, 2010 02:22 AM #13
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2,191,693
Debbie Laity
Cedaredge Land Company - Cedaredge, CO
Your Real Estate Resource for Delta County, CO

I know that a lot of agents in our market are now trying to do the BPOs...when in the past, they swore they wouldn't do that kind of work. I've seen the price of the BPO fall because if I won't do it for what they want, they will move on to the next person on their list. You're right...I'm seeing it first hand. What I get paid for a trip fee has also gone down.

Sep 14, 2010 02:24 AM #14
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