Broker price opinions

[Maxwell Silva]

Hi, I’m a new agent and one of the brokers I’m interviewed with mentioned the opportunity to fill out BPO reports in order to generate a little bit of income while sales are slow.   What exactly does does a BPO entail and is it worth it? Does a broker has a special license to do this, or can any license agent do this under any broker?   Yes, I could just ask my broker but I always feel it’s better to get a broader range of opinions.   

[Joel Owens]

Back in the day they used to pay very well. A rush BPO due the next day for a new home builder that was closing could pay out 125 to 150 bucks. Even the cheap companies was 100. Now BPO's are sometimes the drug of choice for appraisers and brokers. They get that 25 to 50 dollar paid BPO hit and can't get off of it. Some weeks you could be inundated with orders from various BPO companies and other weeks just  a few report orders come in. These companies typically blast out to brokers in their networks and see who picks it up fast.

Way back the timelines to turn around could be 4 to 5 days and fee was good. Now they want to pay low fee and fast 1 to 2 day turn. What that does is instead of stacking 4 or 5 orders and going out to take pics at one time and then filling out forms now you have to go out take pics and submit one report. Then as soon as you get back another one same area etc. You can waste a lot of time and gas. Also the workers at the BPO companies often are clueless themselves and will send back dumb responses on things. For instance a rural property comps could not be within a mile etc. but some hourly person at the BPO company is staring at a screen with metrics and trying to argue with the broker etc. Doing BPO's is not all roses and cherries. There are a few data entry types that are quick and use auto fill type forms and have grunts go take the pics and can crank out 20 to 30 of them a week. On other online website platforms there are forums that talk about BPO's all day long and those that do them.

Appraisers do not typically like them because it's a way for banks and insurance companies to get sampling of a portfolio or a quick property value for cheap. If they had to pay an appraiser 400 to 500 every time for an appraisal the costs would be crazy for the volume they need done. The BPO companies used to have a basic form that was a little more involved than a CMA. Over the years the form was added onto more and more as BPO companies try to win bulk orders to try and deliver value to their customers. What that did is make turn times faster, price to complete BPO's lower for brokers, and forms more complex and time consuming almost at the point of a full appraisal with all the stuff they ask for.

If people want to sell real estate then they need to be working the phones, going to events, getting palm to palm in front of people. Sitting behind a computer doing daily BPO reports all week is not out there selling real estate as a broker/agent. It can become a crutch just like someone working a part time job with just enough effort to get by and pay the bills and make an occasional sale but not be fully successful and immersed in the profession.

I am a believer in that you are ALL IN or ALL OUT. That is why agents have about a 90% failure rate and leave the business. The real question that a broker/agent needs to ask themselves is this. ( If my income and sales is not where I want it to be then WHY is that? Is it lack of knowledge, lack of a daily plan to work with actions and goals, not at the right brokerage or team?) You have to ask the hard questions and most are not ready to hear the answers. It's why the top 20% make the most money and sell the most.

[Jim Scholl]

Joel, the appraisal fee follows the scope of work. Banks and regulators have added a tremendous amount of requirements over the years which is partly responsible for the higher cost. Another is the banks dependence on amc's which add a large markup to the appraisal fee. There used to be more types of appraisals with varying fee schedules but no one orders them any more. Most appraisers can work with any client who has volume to craft a scope of work that provides the benefits of using an appraiser at a much lower cost for non mortgage appraisals. 

[Account Closed]

Hey I am looking to ask a question about BPOs here.I am filling out an application on Pro Teck and they suggest having a background check in my profile. Have you added a background check to your profiles? and did you notice an increase in requests to complete BPOs due to adding it?

[Raushanah Morgan]

How does someone get started in doing BPOs? I'm licensed in TN and MS and just starting out in commercial real estate primarily but also want to be educated/valuable on the residential side as well...and I want to get started ASAP! Thanks for any insight!