HML - can BPO from HML be truly trusted

[Yia Her]

I just closed on 2 HML/Private Money deals and I really was shocked to see the BPO that came back from the agent/broker who was assigned to value the properties. I was shocked because the valuations were quite off from one another (the duplexes were a block away from each other). I know that when getting a HML, they can help you by valuating the deal and if they decide to lend on the deal - you may be in a better position because they lend to deals in which they are in good position. Well, I personally feel the deals were off by a huge margin and this could be troublesome for some who may not know values as much.

Just want to hear from those who may have experience this and what your personal take on HML and BPO/Appraisal valuations. Can these BPO be challenged? Do they just hire anyone that subscribe to them to perform the services and how they may be vetted to ensure they are lending on deals that are truly valued properly.

Duplex 1 - The as-is value ($200K) on this one came back okay but the ARV ($215K) was off by at least $50K. This duplex was the one that needed less work (about $10K of work needed).

Duplex 2 - The as-is value on this one came back at $252K and ARV @ $258K. (this one was in worst condition and needed at least $18K-$20K)

Curious to see what others have experience.