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 What is doing a BPO worth

Created by:
Bonnie Cox, Licensed Real Estate Broker,  Centennial,  CO

Date: January 14, 2009, Number of Replies: 20


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Along with the idea that lenders only want to pay $50 for a BPO and want multiple pictures (about $5.00 an hour) appraisers resent the heck out of agents willingness to work for this low fee and cut them out. No one wins with a lender's BPO.
Bonnie Cox
ABR, ACRE, CDPE, CRS, Eco-Broker, e-PRO, GRI
303-400-6060
6400 S. Fiddler's Green Circle
Englewood, CO 80111
www.TeamCox.com
 
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Rosemarie Doshier Licensed Real Estate Broker,  Nags Head,  NC

Date: January 15, 2009

rosemarie@TheDoshierTeam.com

www.TheDoshierTeam.com

1-888-928-9629

8AM TO 8PM Daily

Cell 252-305-3996

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Jim Forsyth Licensed Real Estate Broker,  CA

Date: January 15, 2009

Well let's see, here's a data point. I spend about 30 hours a week doing BPOs and I do all the work myself. My BPO income for 2008 was $68,000 so that works out at $45 per hour. Appraisers do BPOs too by the way. What's your point?
Jim Forsyth

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What is doing a BPO worth
Jan 14, 2009
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Along with the idea that lenders only want to pay $50 for a BPO and want multiple pictures (about $5.00 an hour) appraisers resent the heck out of agents willingness to work for this low fee and cut them out. No one wins with a lender's BPO.
Bonnie Cox
ABR, ACRE, CDPE, CRS, Eco-Broker, e-PRO, GRI
303-400-6060
6400 S. Fiddler's Green Circle
Englewood, CO 80111
www.TeamCox.com
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Date: January 15, 2009

Along with the idea that lenders only want to pay $50 for a BPO and want multiple pictures (about $5.00 an hour) appraisers resent the heck out of agents willingness to work for this low fee and cut them out. No one wins with a lender's BPO.
Bonnie Cox
ABR, ACRE, CDPE, CRS, Eco-Broker, e-PRO, GRI
303-400-6060
6400 S. Fiddler's Green Circle
Englewood, CO 80111
I wouldn't deny an agent an opportunity to use their skills to provide a professional service. In these challanging times, one needs to keep the lights on until a healthy market returns. Real Estate is cyclical and we're seeing the downside. So, if BPOs are $50 one needs to make that business decision based on their own situation.
BPOs are a useful tool to verify the condition of the property (exterior / interior) as well as report the current listings & sales in the immediate market area. However, lender should never use a BPO for mortgage underwriting.
Now is the time to go back to basics, which includes sound underwriting and risk management. Lenders can avoid problem loans by conducting proper due diligence, and hiring qualified real estate appraisers � individuals with advanced education and experience requirements.

Stephen Penrose, RE Consultant, e-PRO
MO State Certified General Real Estate Appraiser
314.805.8044 (direct) 314.832.0990 (fax)
3148058044@CingularMe.com (text-message)
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Catherine Myers Licensed Real Estate Broker,  Pleasant Hill,  CA

Date: January 15, 2009

I agree with Bonnie in Denver and hope that everyone who does these BPO's states "Not For Lending Purpose" - this is only a Broker's Opinion and not an appraisal.>>>

On the subject of BPO's. I was working on a short sale and we received an approval... but then the buyers appraisal came in much lower than what our original offer was (of course it was 3 months later as it took that long to get hte approval). Short sale bank would not budge. They were taking their 3 month old BPO "OPINION" over the appraisal. I sent them the entire buyer appraisal. Still wouldn't budge. THe other problem is that an appraiser took a declining market adjustment for the area this home was located in. A BPO often does not take that into account so in my opinion , 3 months later that BPO was completely irrelevant. Still the bank said that's it, that is investors final answer, they will not budge. So we lost that buyer. This was CitiMortgage. They're real smart aren't they? They absolutely were willing to foreclose before conceded the value on their BPO.

Luckily we got another buyer 2 months later, Citi agreed to do a new BPO since now their original one was months old and while we still had an issue with value, the buyer came up... the appraisal went well and we should close next week. However had they taken that first offer... we'd be closed last September! That's the way Citi takes care of their books :) This homeowner hadn't made a payment since last June. You think it cost them even more from Sept to almost February? I'd think so!
 

 

Catherine Myers, REALTOR
GRI, CRS, ABR, SRES
Alain Pinel Realtors
1646 No. California Blvd., Suite 101
Walnut Creek, CA 94596

925-683-2125 cell
925-465-1593 fax

www.DiabloValley.net
www.CCShortSales.com

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Thomas Roberts Licensed Real Estate Agent,  Powell,  OH

Date: January 15, 2009

Well said Jim,I told someone,who was wondering what they could do to make $ and still stay in the business,I said BPO,got to use all of the equipmt.Happy 09

 

Regards;

 

TJ

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Jodi Wallis Licensed Real Estate Agent,  Orlando,  FL

Date: January 15, 2009

Well that was the banks fault. An appraisal is useless in this market after three months as well. The bank was being stubborn. That really doesn't have to do with BPO's being good or bad or business.
 
 
Sincerely,
Jodi Wallis
Realtor®,GRI,CSP
CENTURY21 Elite Properties
The Global Real Estate Team
www.jwallisglobalrealty.com
407-212-8802
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Jane Becker Licensed Real Estate Agent,  Jefferson,  MA

Date: January 15, 2009

Fifty for exterior and seventy five for interior. the biggest problem is all the modifications they want you to make.

Jane Becker
CBR,MCBA,GRI,ABR,CRS,LMC,E-Pro
www.hometeamadvantedge.com
buyhomes@charter.net
508 829 3338 ma.in
508 922 9832 cell

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Ronnie Cline Licensed Real Estate Agent,  Morganton,  NC

Date: January 16, 2009

After speaking with the North Carolina Real Estate commission concerning BPOs, it is my understanding that real estate agents are not allowed to perform BPOs for third party venders or lenders and collect a fee for the BPO. We, real estate agents can only perform BPOs if we are certain to get the listing. This is really confusing to me. I feel it is the same thing as a CMA.

What are your thoughts?

Thanks,

Ronnie M. Cline

REALTOR, e-Pro

RM Cline Realty

rmclinerealty.com

828-205-2407

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Glory bee Costa Licensed Real Estate Agent,  St. Michaels,  MD

Date: January 16, 2009

After speaking with the North Carolina Real Estate commission concerning BPOs, it is my understanding that real estate agents are not allowed to perform BPOs for third party venders or lenders and collect a fee for the BPO. We, real estate agents can only perform BPOs if we are certain to get the listing. This is really confusing to me. I feel it is the same thing as a CMA.
What are your thoughts?
Thanks,
Ronnie M. Cline
Ronnie
I agree with you, I do BPO's, but I specify it is a Market Evaluation as I am not a licensed appraiser, don't know if it helps,

--
Glory Bee Costa ABR, CRS, GRI,
E-PRO, SRES, ASR, CSR
410-310-9081-Cell
410-763-6001 EXT 107 Gen. Office
Maryland-WaterFront-Homes.com
Glory@GloryBeeCosta.com
Re/Max Gold Realty, LLC
Easton, MD

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Norman Tuttle Licensed Real Estate Broker,  Quincy,  MA

Date: January 17, 2009

After speaking with the North Carolina Real Estate commission …. is my understanding real estate agents are not allowed to perform BPOs for third party venders or lenders and collect a fee…We, real estate agents can only perform BPOs if we are certain to get the listing.….really confusing to me. I feel it is the same thing as a CMA.

I hail from the fair state of Massachusetts where I believe this not the case and if it were I would be in serious violation of the law. Having said that, I wonder if some folks from states who also have this as part of their statute could comment on the basis for it and the enforcement/consequence.

Norman E Tuttle E-Pro, CRS, GRI

Granite Group, Realtors

617-429-7749

Norman@TuttleRealtor.com

www.NormanTuttle.com

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Keith Blazek Licensed Real Estate Broker,  North Miami Beach,  FL

Date: January 18, 2009

When discussing BPO's it is very important to consider the State where Licensed... for example, in the State of Florida, BPO's can be legal, while in the State of Mississippi they are explicitly illegal if performed by anyone other than an appraiser.

Here in Florida, I've seen agents get from between $50 - $125 depending on the owner and the terms of the BPO.

Have a great week!

Keith Blazek - CRB, CRS, GRI
Ocean View Int'l Realty, Inc. - North Miami, Florida

www.KeithBlazek.com

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Linda Humphrey Licensed Real Estate Broker,  Reno,  NV

Date: January 18, 2009

>>>>When discussing BPO's it is very important to consider the State where Licensed... for example, in the State of Florida, BPO's can be legal, while in the State of Mississippi they are explicitly illegal if performed by anyone other than an appraiser. <<<<

It is my understanding that there are quite a few states where performing a BPO for pay is illegal for real estate licensees. Nevada is one of them. I believe the appraisers group lobbied heavily for this. Nonetheless, there are quite a few doing them, either blissfully unaware or perhaps just hopeful that no one will notice.

The one company I have done BPOs for has taken the position that those of us in states where BPOs are illegal can merely provide the data, which is extensive and probably 99% of the work, and then not offer a value. We just fill in $1 in the estimate of value box. Apparently most of the lenders they represent have computer models that can determine a value based on the comparables that are provided. I will sometimes provide a suggested listing price, which I feel is within my area of expertise as a REALTOR, but not an opinion of value or estimated sale price. I would check with your broker before you consider doing this; mine was ok with it.

Furthermore, I am hopeful that someday this effort will result in a listing or two. Regarding the comment that BPOs can only be performed when a listing is "guaranteed", since when is that ever the case?

Linda

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macbeth@silcom.com

Date: January 18, 2009

 

Regarding what is doing a BPO worth - I have been doing them for over 15 years and have always felt that the lender is taking advantage of the agent. They usually take significant time to do correctly and over the years the price being paid has gone down and the liability has increased. In some cases the fee does not even cover the gas to drive to the properties to take pictures. We live in a small town and finding appropriate comparables to bracket the property is time-consuming and sometimes it is not possible. Then, the lender sometimes requires a full blown explanation of why you cannot do it. In the 15 years we have done them we have finally received one REO listing but I am not sure that is related to any of the BPO's I have been asked to do.

That being said the advantage of doing BPO is it keeps your eye on the market and in a constant state of evaluation the true worth of properties you are listing and selling to qualified buyers. And then there is a certain value to being in the know on how to upload and complete their ever changing paperwork.

David Macbeth, GRI
Sotheby's International Realty
Bus.: 805.688.3757 x-13
Fax: 805.688.9431
Cell: 805-689-4178
Email:David@MacbethRealEstate.com
www.MacbethRealEstate.com

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Ed Triboski Licensed Real Estate Broker,  N. Oxford,  MA

Date: January 18, 2009

"Regarding what is doing a BPO worth - I have been doing them for over 15 years and have always felt that the lender is taking advantage of the agent. They usually take significant time to do correctly and over the years the price being paid has gone down and the liability has increased. In some cases the fee does not even cover the gas to drive to the properties to take pictures."

I agree, I also have been doing BPO's for many years and have found that most requests that I have received will never lead to any REO business. There are only 2 companies for which I will complete a BPO (no, I won't name them). When gasoline went over three dollars a gallon I took a hard look at my driving habits and realized that I was not only not getting REO listings from most of the companies that I was doing them for but it was costing me more money than I was making doing the BPO's.

The companies that I dumped were low paying, slow to pay and had unrealistic standards for the completion of a BPO. A BPO is a Brokers' Price Opinion with the emphasis on opinion; if these companies want an appraisal let them pay an appraiser. The fee for all paid real estate activities is negotiable. I negotiated the BPO fees with the companies for which I am willing to work. No one wants to endorse their checks in red ink.

Regards,

Ed Triboski

====================================================

Ed Triboski, REALTOR

CRS, GRI, CBR, e-PRO, LMC

Licensed MA Real Estate Broker

Realty Ace, LLC

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