RealTown's RealTalk

To any of you that do large numbers of BPOs.....
Just lately, I've had roughly 10% of my reports kicked back, for coming in too high.
Keeping in mind that I do not list REOs and have no vested interest in being
too high, nor too low.... I do my reports as to "what the market will bear", and
certainly, I factor in the decline for many nghbrhds which are hard-hit with REOs.
I defend my reports, and do not slash values unless I feel warranted.
We also have an abundance of investors that gobble up many of the REOs.

Here in Houston area, not ALL nghbrhds are devastated with REOs.
To me, devastated is when values are half of what they sold for 4yrs ago.
Some are only down 20%, some only 10%... (we have an additional factor of
some having hurricane damage, but ignoring those for now).
Many comps are suspect, and have varying credibility... with my 30yrs experience,
I can tell the difference.

I prefer not to name this particular acct, but I'm curious if this is happening with
anyone else. You can respond here on this forum, or with complete confidentiality
to my personal email.

Lindy in Houston
TX-Lindy@comcast.net

What I have found is that the bpo companies forms are incorrect. I had 3
come back this week saying, can this house sell in 30 days for the value you
put on it. My response was no. Your bpo form asked for a 90 to 120 day
value, and that is the value I gave. If you want a 30 day value, say so!
There is a huge difference in a 30 day value and 120 day value in my area.

Jim Clauser
Your Real Estate Consultant For Life
RE/MAX Associates Athens, Inc.
706-714-1181 Direct
706-433-0542 Fax
http://www.JimClauser.com to view over 3000 homes!
mailto:Jim@JimClauser.com
Check out my Blog at
http://www.VisitJimsBlog.com

LIndy!!! I can't beieve you don't know the answer to this question:

"To any of you that do large numbers of BPOs.....
Just lately, I've had roughly 10% of my reports kicked back, for coming in too high.
Keeping in mind that I do not list REOs and have no vested interest in being
too high, nor too low.... I do my reports as to "what the market will bear", and
certainly, I factor in the decline for many nghbrhds which are hard-hit with REOs.
I defend my reports, and do not slash values unless I feel warranted.
We also have an abundance of investors that gobble up many of the REOs".

Maybe you didn't hear, but back when the other President was in office they had this Bailout Program at the cost of $700 billion dollars (six months ago) and it DIDN'T WORK. So this President who really knows how to put two sentences together to make up a paragraph pledged another $700 billion, give or take a few 100 billion here or there for earmarks and bonuses. So let me ask you Lindy, you telling us you are not aware of what that money was all about? Let me be the first aware soul in the room to tell you, the bailout was a Payback for all the loans the lenders were not allowed to discriminate over. You know those red-lining lenders down in Houston back in the late 90s that made 60 minutes and Public Broadcasting? Or did you forget? Either all this is just nothing more than a "Market Correction" (accident) or it's a will designed Plan to confiscate more of our liberty and freedom in exchange for all the misery that one man in the White House has brought us in the past 8 years. Isn't it nice to know that you can be duped by someone who can't put two sentences together who made up words to explain his position? I'm glade the MEDIA is looking out for us and keeping us all INFORMED. You see the reason for your kick back is because these lenders have to get these TOXIC LOANS off their books, they want the LOWEST PRICE AVAILABLE IN CASH!! Remember the lenders didn't want to foreclose! Anyway that's what we were all told as we advertised all the SHORT SALES, or did you forget about the small details? So why did all this happen again? Just follow the money you'll eventually find the real payoff (((POWER))). It's sitting in our Oval Office along with the Appointees who can't win an election in their own districts. Even Timmy can't get his closest friends to come to the ball. Sad story but that's typical Washington Politics. Now you know most of the story. Just keep an eye on AIG. And don't forget ENRON, they were the small time scape goat that showed everybody the way. have a good day and get out there and list list list and sell sell sell. Isn't that what this group is all about?

Hi Lindy!

Here in CO, I have the opposite problem. Our values are down and I have trouble convincing the companies that there are next-to-no buyers, and the values are less than what they were a year ago, two years ago, etc. Not just bpos but CMAs for relocation companies, too. The values were so inflated because of the boom in the natural gas and oil shale industry that now they average $50,000 and more LESS than 1.5 years ago. The relo companies don't want to accept it. I factor in the down trend, and most companies don't like that, but I know what is going on. Getting sellers to be realistic is tough, too.

The relo companies don't want to pay more and some paid more nearly a year ago. Can't change the facts, folks. Being rural in effect and very few comps that are really similar doesn't help me, either. Sold comps are almost non-existent unless I go back a year. Subdivisions are even getting hard to comp for that reason.

I am really getting tired of doing them and then having to defend the value. They asked my opinion and they got it. Now I have one company that pays just a tiny bit but it is just an occupancy/condition verification. They are demanding I knock on doors now and verify with neighbors that someone is living there. There is not enough money nor volume to make me want to do that for any company.

Does anyone, who does BPOs, knock on doors to inquire of neighbors re. the occupancy?

Juanita R. Williams REALTOR® e-PRO
970-618-4525 cell ph-the easiest way to reach me!

Juanita @ SoldByJW.com

Lindy wrote:
Just lately, I've had roughly 10% of my reports kicked back, for coming in too high.

Hey Lindy -

I find a lot of times, more than one agent has done the BPO, or they have a previous BPO from a few months ago and are looking for an explanation as to why there is a large difference in value.

Usually, an explanation of your value, your comps, etc., is sufficient.
If they provide you with the comps used in the other BPO, then comment on those comps and why they are inappropriate - I find that there are usually issues with the other comps used, such as they changed the date of sale (they say it close Jan 09, but it really closed Jan 08 - I see this a lot), they've included the basement in the square footage, or there are other very apparent discrepancies.

A good explanation will usually go a long way.

That being said, a few lenders are imposing their own restrictions on how comps must be chosen, and even if we feel it is wrong or that it does not apply in our market, we have to go along with their restrictions if we want to complete their BPOs. This is something I'm starting to see more of, and fighting it usually does no good. These are the ones I will have to think twice about completing in the future.

Hope this helps!

Don Fabrizio-Garcia
Danbury, Connecticut

I don't ever knock on doors to determine occupancy.

prefer not to name this particular acct, but I'm curious if this is happening with
anyone else. You can respond here on this forum, or with complete confidentiality
to my personal email.
Lindy in Houston

I have this happen from time to time when previous BPO's opinion of value differs more than about 5-6% from my 90 day value. They have not been providing comps from previous BPO's but I have my suspicion that some agents are fudging square footage or sales dates and do not know the area as well as I do. After justifying my values in a note to them that is the end of it. I do not knock on doors to see if home is vacant, that is too dangerous. I judge by appearance, i.e., no cars in the driveway, newspapers not taken in, empty rooms seen through windows.


Margery Stern

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