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BPOs They're getting cheaper-How about yours??

By
Real Estate Agent with Century 21, Preferred Properties

I do a fair amount of BPOs in my area and have about 20 companies I deal with most frequently. Lately, I noticed that some providers are reducing their offered payments for these. Some have gone as low as $45 which scarcely makes it worth the time and effort. Lake oconee where I am is in a very rural area and the drive isn't worth it. I have always wondered what these folks are charging the end user and from the variations in payment that I get on the same properties, I have to feel that it's a bundle. I told one the other week that I wouldn't do it for what they offered and she said 'ok thanks'. I got called back 3 days later evidently because the lowball agent she selected based strictly on price didn't bother to do the job. I got my  asking price on the call back, uploaded a good BPO on time and basically saved their bacon since they could provide it to the client on time. Unfortunately, most banks and lenders that order these agree to the price with the asset manager and have no clue how much of that  amount is offered to the actual agent doing the work. BPO's have become big business with more and more agents doing them - all with varying degrees of success. For those of you that have been involved for some time in this business, stick to your guns. Don't drop your asking price just because some new agents don't know any better. If you have to drop an asset manager do it. When they provide an inferior product 2 days late their feedback from the end user client won't be pretty and sooner or later they'll do what works. Saving $20-30 on an initial order won't be much consolation when it costs them an extra $40 for the rush job they had to get me to do. Has anyone else seen much of this declining revenue trend?

Happy closings :)

Chris

Comments(8)

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Andrew Monaghan
The Monaghan Group - Glendale, AZ
CRS, GRI, EPro Associate Broker

I have seen a charge showing up on my properties in res net for appraisals for $400, BPO maybe or it could be a full appraisal

Jan 18, 2009 11:34 PM
Renée Donohue~Home Photography
Savvy Home Pix - Allegan, MI
Western Michigan Real Estate Photographer

Yea, O to the wen is driving me crazy with the lowering of prices PLUS extra scrutiny!

Jan 19, 2009 02:57 PM
Cameron Wilson
Labrum Real Estate - Murrieta, CA
The Short Guy - Murrieta,Temecula,Menifee Californ

Too many agents are willing to do BPOs for next to nothing.

Eight months ago I received a phone call from an AM asking if I would do a rush BPO for her as they had two done already and the difference in determined value was significant. I sent it to her in three hours and she sent an appraiser out as well. The value from the appraiser and myself was only $850. After that one she sends me listings on a consistent basis.

As Andrew stated I have seen fee's for appraisals on Res Net. One of my clients orders them on a regular basis.

Jan 20, 2009 11:25 AM
Thomas Ryan
FreeListingPresentation.com - Los Angeles, CA

It's freaking ridiculous, with all these new agents doing BPO's these days the price per order is being driven down. Oh well, guess that means we cant put all of our eggs in one basket. There are plenty of buyers out there and rates are low!!!

 

goood luck to all

Jan 23, 2009 03:57 PM
Eric Egeland
RE/MAX SUBURBAN - Libertyville, IL
SFR, e-PRO, CDPE

Thanks for the post Chris,

I've seen prices come down as well from numerous companies. I've personally stopped doing the lesser paying ones, they're truly not worth the time.

Jan 24, 2009 11:50 AM
Regina P. Brown
MBA Broker Consultants - Carlsbad, CA
M.B.A., Broker, Instructor

This trend has a name... it's called GREED.  These companies will ONLY start paying more when they can't get anyone to do them for low prices.  So don't be afraid to just say NO!  How much is your time worth, anyway!

Feb 03, 2009 01:45 PM
Dave Korte
Mak Home Realty - Yorba Linda, CA
If we cant sell it...We'll buy it!

2 BPO's came accross my desk over the weekend.  One was offered @ $15 and the other was for $20.  One of the company's name is Valuation Vision.  Has anyone else been seeing this trend?  $15 bucks!  Hardly worth the time to delete it from my inbox. 

Sep 24, 2012 07:25 AM
Virginia (Ginger) Schott
Cabins & Canoes - Port Jervis, NY
Assoc. Broker, CBR, CHMS

Stay away they do not pay.  They are up to $50 but it's 3 months and I still am waiting for payment.  This close to filing a complaint with Attorney General Office

 

Feb 24, 2014 05:59 AM