Sally/David -- Great post. There's a lot of information to be considered such as repairs needed and condition that sometimes is not factored in by the less experienced agents doing BPO's.
Some of the agents doing BPO's are great... some are not and don't even have experience selling (or even buying) Las Vegas homes. I've even come across situations where the actual BPO agent is not even looking at the property in person and just sending out a photographer while they sit in the office cutting and pasting BPO reports all day.
What really needs to be addressed is some of the certain lenders out there that won't budge when we come across those not so great BPO's. I've come across some ridiculous ones and the lender will not budge without multiple reports including appraisals (that somebody has to pay for besides the lender/servicer of course) and time consuming repair estimates.
We all know why the lenders / servicers are using BPO's and not Appraisals in the first place... which should probably be a bigger complaint then just lumping BPO agents all together as being the problem.
Ironically... I just so happen to be closing one of my BPO problem Las Vegas short sales today. It took two Appraisals and two licensed Contractor repair estimates showing over $20,000 in repairs needed to get the servicer to reduce the poorly done BPO suggested value down $15,000 in order to get this deal done.
There is no way that it could have been done without having a Great Buyers Agent on the other side of the deal and a very, very patient and understanding buyer.
What could have been done four months ago if I would have been listened to and my reports considered, took this much longer ALL because of a BAD BPO in the first place.
Paul Francis, Realtor
Prudential Americana Group, Realtors
Las Vegas Short Sales
I am taking the time to write this note/blog to all the agents that do BPO's and tell you how very important your job is to people who are in the absolute worst time of their life. They are facing adversity that they never dreamed possible...the forever job, marriage or good healh or some combination thereof is gone for now and they are struggling to put it all back together....and doing a short sale is one of the first positive steps they are taking to begin their lives again on a positive path. We know that you are not paid a lot for the time it takes you to go to the home and evaluate the condition and location and arrive at a market price.
We also know that you are not a home inspector, structural engineer, roofer, foundation specialist, etc. We are not either....that is why we call these people....for their expertise and evaluation of problems that a home may have, the seller is unable to address and the buyer is willing to accept as part of the "as is" condition of the house that they have agreed to purchase.
We respect the work you do...Please honor and respect the buyers who are aware of the cost of the repairs..Please don't discount that investment the buyers are willing to make to own the home. Please really look at the condition of the house and appreciate what a buyer will have to invest to bring the home to the level of condition of what the MLS may show as comparable.
We take careful note of the people who do the BPO's for our short sales. We commend your work. Conversely, when you arrive at values that are far above and beyond what the home would sell for in the foreseeable future...when you overlook needed repairs....when your goal is to complete dozens of assignments in a short period of time...your goal is not to serve the lender....not the buyer.....and not the industry you have chosen to be a part of...those numbers serve no one. When you have developed a pattern of unrealistic values, our response to the lender will include that information. Whether you realize it or not...each BPO you do, builds or helps to destroy your reputation as a credible source. If money is your motivator without regard to the attention to detail that your job requires, please consider another career path. The time that it takes, the money that is spent, documenting what you chose to overlook, will be duly noted...the lender informed and the oppportunity for a new start in life, delayed because of the way your job was done....or not done. We respect what you do...respect the consequences of your actions....take the professional "highway"....More is not better...a higher price is not what anyone wants...it is the MARKET price...the price that will appraise...the price that considers the condition and repairs required. Highest and best does not apply here....Thank you for listening, thank you for employing care and professionalism in your practice. Your work is important, your reputation is as well.
Amen and Women.