Are BPO's worth the time and effort?

By
Real Estate Agent with Coldwell Banker Sea Coast Advantage~ Ginger Harper Real Estate Team 93383

Is it really worth doing BPO's today? 

 I have tried to figure this out and this is want I have come up with.  I need around $100 per BPO in order to break even.  I pay my Administrative Assistant $12. per hour for the work that she does.  Some of the BPO's are in the lower end of the County.  That is a round trip of about 2 hours.  Doing the research to meet the criteria of the BPO will take an hour and then an hour to  put the work together.  I am beginning to believe that it is not a break even situation right now. 

 

Tell me what you think and how do you handle this.  I have thought in the past that I may get the listing on the property that I did the work on .  But that doesn't seem to happen.   

Seems like some agents get all of that business and I want to learn how to break into that market and see if I can make it profitable. 

I will be taking the short sale course soon and want to be successful in the depressed market along

the North Carolina coast...

 

Thanks for any help.

 

Ginger Harper

Coldwell Banker Sea Coast Realty

800-346-7671

Comments (3)

Mike McCann - Nebraska Farm Land Broker
Mike McCann - Broker, Mach1 Realty Farmland Broker-Auctioneer Serving Rural Nebraska - Kearney, NE
Farm Land For Sale 308-627-3700 or 800-241-3940

My advice is to run from them or charge them enough to make up for the hassles.

I still get calls to do BPO's. I give them a menu of rates.

Drive by is minimum of $200.  Interior is minimum of $250.

Includes 5 photos. Additional photos are $10 each.

I charge time in 1/2 hour increments. 1 minute to 1/2 hour = $25   31 minutes to 1 hour = $50

I tell them that I charge an additional $50/hour plus mileage based on the IRS rate for any BPO over 10 miles roundtrip from my office. I estimate to them that the the time to complete the BPO is 3 hours plus drive time plus the mileage.  They usually offer $50 or so for the entire BPO and sometimes as high as $100.

I will not accept that.

For instance:  A driveby BPO  that is 50 miles away from my office is 100 miles plus an additional 2 hours of time ($100) as the average speed is somewhere around 50 MPH.  Plus the original cost of $200. Plus the mileage of roughly .50/mile ($50).

If they want to pay me approximately $350 for the BPO I might do it.  If not I ask that they not call anymore.

I also refuse to load their software on my computers.

Not doing many BPO these days as it was a giant waste of time...and there are enough fools out there who will do it for the cheap rate because they think they will actually get listings in the future ( like I thought...which did not happen).

Oct 22, 2012 12:52 AM
Michael Jacobs
Pasadena, CA
Los Angeles Pasadena 818.516.4393

Hi Ginger -- Mike McCann certainly has a system in place that seems logical.  I did lots of BPOs as a new agent but haven't done one in years.   

Oct 22, 2012 01:45 AM
Mike Frazier
Carousel Realty of Dyer County - Dyersburg, TN
Northwest Tennessee Realtor

I used to do a lot of BPO's but that changed when some companies did not pay and they started offering much less for the BPO's. Now when they call me with a $40 BPO I tell them I don't work that cheap and hang up. I don't appreciate the insults.

Oct 24, 2012 12:22 AM