BPO's values and what they ask

Managing Real Estate Broker with Tim Riddle Broker Associate,Marsha Hardin Real Estate

I do a lot of BPO's and have for almost 20 years .  The thing lately is that when you submit the BPO and then the asset company or who sent the BPO, kicks it back saying they have better comps they have found on Zillow or where ever and want me to replace my comps.. Havent they figured out that IF there were better comps i would have already used them? they are 800 miles away and telling me my market?  they need to ask me not tell me.  Plus trying to use a ratio from sold to market value isnt a smart idea either. In some areas that will not work period.    A house is only worth what the market brings not what someone wants it to be worth. Rural BPOS are a lot of my business too and the asset companies need to understand the rules for a surburban BPO and a rural BPO's are night and day and cant use same rules or anything. They are not in neighborhoods or subdivisions, you might have a 3500 sq foot brick house on 10 acres and the closest property is a singlewide on one acre with a pig in the front yard. So going 15 miles away for comps is the only choice . So i sure wish they would uinderstand all BPOs are not the same. ( never will be )

Comments (4)

Virginia (Ginger) Schott
Cabins & Canoes - Port Jervis, NY
Assoc. Broker, CBR, CHMS

Tim, I hear you brother.  The companies, I've been working with have been kicking back more often lately.  I also do Rural areas and I have had to go back further than 6 months to find sold comps that are really comps.  I find they are giving us less time to complete them also

Jun 20, 2011 05:26 AM
Jason M. Keith
Caliber Home Loans - Parker, CO
Equal Housing Lender

If you look closely at Zillow it makes no claims to actually being accurate.  In the Denver area they said they could be up to 20% off! 

Jun 20, 2011 05:59 AM
Nita Shinsky
Shinsky & Assoc - Azle, TX
Broker, GRI, SFR, e-Pro

I have seen this BPO market go from reasonable to crazy lately. More and more asset companies and BPO companies think they know what is going on in a particular market or they think they know what the value "should" be before they send you the order. I have had a lot kicked back to me recently as well but my response is usually something along the lines of, I don't make it a habit of doing a BPO more than once, I typically search consistently for comparables the FIRST time, just becuase you don't like the comps used, does not mean that replacing them with what you think the comps should be will affect the value. I typically don't have many kicked back a second time when I enter that verbage. Good luck with the BPO world, it can be a little overwhelming sometimes.

Jun 21, 2011 05:16 AM
Tim Riddle
Tim Riddle Broker Associate,Marsha Hardin Real Estate - Azle, TX
SFR,TAHS, Azle ,Fort Worth Real Estate

I also will tell th asset company i am not replacing the comps And if for some reason i do replace one the value will not change one cent. So if they want to reassign it go ahead. Zillow in my area is more than 20 % off..  One asset manager kicked one back so many times for the stupidest reasion i ask her, Ok what value do you want? Tell me what to put and i will, but i will not  support your decision. she apolgized and said it was ok.  Whew  it wore me out

Jun 21, 2011 01:35 PM