Brokers Price Opinion (BPO)

C Lloyd~ Maybe they should go ahead and pay the money and just get a appraisal done then!  I would not change any of it, your opinion is your opinion!

I agree with Vickie, I would not change it. I've done several BPO's in the past and not one ever resulted in a listing. In my opinion they are not worth the hassle or the compensation received.

I have had the same thing!  It wasn't so bad a few months ago but this last month has been awful!  Like some others above I am starting to wonder if this is worth it.  It was great at first but now the banks won't accept them when you give them a TRUE opinion. 

What actually happens if they reject your opinion? Your time is still worth something correct?

I did have one that called me to question my value. They do have people looking at all the numbers you submit and "math" them out...Very scientific. However, this particular house is in a unique neighborhood and I had to point out the facts to them and stand firm on my judgement as the "local expert". They finally agreed and accepted my value...most importantly, I got paid!

My husband does many BPO's.  I hear on other social boards that some people have had this problem.  I know they have QC failed some of his because another BPO had a significantly different value.  We discuss this to say so who is to say that other person was correct.  He never changes his values unless further research would indicate he was in fact in correct.  It isn't worth the liability to change the values, you are better off eating the work you did and let them find someone else to do it.  Sunk Costs in the accounting world. 

I recently took a continuing education class with aproximately 60 other individuals. The instructor asked in how many people in the class did BPO's and only 3 out of 60 performed BPO's. Personally I don't think that very many people are doing BPO's today (well, at least that is the case in my market).

C Lloyd- Sorry I do not have any experience to share. But I was wondering, since they didn't like your opinion, did they not pay you? My understanding is that banks typically get several BPO's done per property. Just for this reason- they are opinions. Just like an appraisal is an opinion of value. And opinions vary. Interesting!

C Lloyd, there are many reasons that QC would not be happy with your value and will ask for clarification. If I have sbmitted the Best comps for the property but am outside of their guidelines, I have to comment, comment comment and they sometimes still kick it back for more comments. Some of this is based on software programs and is done automatically. Good Luck with your ventures!

I too have had a few personal experiences myself with what you all are talking about. I know for a fact that most BPO, REO and Asset mgmt companies have a licensed appraiser on staff (most times within their QA or QC Dept.). It is their main job to overlook the BPO's after they have been completed and have passed through an automated computer program that uses set criteria...a sort of checklist that goes through each BPO and looks for common errors. Keep this in mind when you think about the questions C Lloyd McKenzie asked.

If I could give my two cents, I'd say that to me it sounds like the BPO that you did was on a short sale property or for a HELOC. (Also, BPO's have even been known to have been completed after an appraisal has been submitted which is done with the intent to check up on the appraiser and see that his opinion of value is legitimate and not fraudulent) Banks will choose to have a BPO done by a real estate professional over paying for an appraisal if they had to choose between the two. Most times they will also do a quick AVM (Automated Valuation Model) to get a ballpark figure of what a property is worth.

I'd be curious to know if the man that wrote this blog, C Lloyd McKenzie would comment on why that particular BPO was ordered. (That is if he knows, many times we are not told and have to research ourselves to find out more details)

There have been a small handful of times where I have received similar phone calls from the various BPO, REO and Asset mgmt companies that had me do BPO's over the last 2 years. They either want me to make a lot of comments about why I feel the property is worth a certain amount, whether it be because of being in a slow market, having a lack of stronger comps and the ones used are the best available within a mile, or...... some have gone so far as to try to get me to see the need in suggestively lowering the value I provided. This is such a tough place to be in, not only for me but for the greater good.

I've heard from some of my past customers and fellow BPO Agents that they've seen first-hand as they submit a BPO that was in a similar situation and have gone back later to see what happened to it, to find that someone changed the suggested list price or the value that the BPO Agent put into their report. Talk about a slap on the face and you can imagine those people feel extremely violated!

Lastly, I wanted to quick mention two things. One is of the weirdest BPO's I've done to date was when I was harassed by the homeowner when I called to schedule an appointment to do an interior inspection and found out that I was the third person to do a BPO for a property as well.

And two is, the REO market is highly competitive just as the BPO market is, I have found that through my own personal experience and through comments of my past customers that it is extremely hard to break into the REO segment. I can understand why though. The majority of people that are enjoying a landslide of REO listings have put in their time and paid their dues. They have established relationships with the companies they work with and deserve all of the fruits of their hard work.

I also know that there are still opportunties to get REO's, you've got outshine others and stand out in someway in order to get the chance. Then you've got to build that relationship in order to align yourself with more possibilities to receive more REO listings.

Don't forget to stand up for yourself!

Warmly,

Nicole Ocean

BPO Trainer/Realtor

www.nicoleocean.com

360-223-2482

So far I've been doing BPOs with Protek and Main St Valuations. Signing up with multiple companies as I have a team of agents working with me now. Got a list of them on a site for under $20.00. Think they had about 135 companies with the URLs.. Anyways maybe this can help another agent. Here's the link.

http://bpolist.digitalcontentcenter.com

Though this thread is old and isnt an employment blog but I have to try--Im a California real estate broker in need of a commercial BPO of a retail property in Albuquerque. Is there someone among you with this experience and could handle the job now? Please contact me by email chasvas1@yahoo.com or phone at 951-286-6241. Thank you.