How Can I Do A BPO When I Don't Know Anything About the Property?
Yeah, I know I can be a stickler. And, I take BPO assignments mostly just for fun. Doing BPOs occasionally provides me with information about what the process is like, it is paid research about my market, and it also helps me to appropriately criticize BPOs on my own files. I had a good thing going with one BPO company for awhile, but I must have received a bad remark on a file that I turned back in due to a sudden conflict of interest. Since then I've been on the open market for a new BPO provider, and it is interesting to see how other companies handle their BPOs. I have already had the experience of not being paid for my work, and on my most recent BPO I was penalized because I insisted on getting accurate information about the subject property. Silly me.
I was asked to give an opinion on a property with two homes on one lot. The MLS and tax records were incomplete because the additional dwelling had been added to the property since it last sold and the tax records only reflected the first dwelling as well. I suppose they expected me to guess. Many agents probably would have guessed I suppose But, in addition to being afflicted with the aforementioned "sticklerism," I also found it impossible to ballpark the expected monthly rental on a dwelling when I didn't even know how many bedrooms it had! So, I called and emailed the BPO company letting them know that I wouldn't be completing the BPO without receiving that information. And then I didn't hear anything.
About 6 days later an old appraisal of the property magically appears in my email, and I guess this is my invitation to complete the BPO. Only I'm headed out of town and when I log into their system, they have now marked the assignment late with big red flashing numbers depicting the day, hours, minutes, and seconds I am now "late." I called and was informed that yes this BPO was considered late. Of course, I don't really care because: 1) this is completely absurd, and 2) I don't need to do BPOs to make a living. But I suppose a few other agents who regularly do work for this company would have cared and probably would have just cranked out that BPO not knowing anything about the property at all in order to avoid being "late" and given a derogatory mark in their system.
After sampling so many different BPO companies that each have their own serious flaws, I am getting to the point that I don't think that banks should be allowed to rely on BPOs at all anymore - the potential for abuse is too high and often they are just too unreliable. The decision about whether to modify someone's loan or approve their short sale should not be made in such a haphazard way. I strongly feel that REALTORS® and real estate agents shouldn't be completing BPOs where they have incomplete information, or where the BPO company forces their hand about a value and they really don't agree. Accordingly, on my own short sale files, if the bank orders a BPO and the value comes back inaccurately, I strongly recommend that the short sale seller obtain an independent appraisal of the property.
Serving Santa Maria, Orcutt, Nipomo, Los Alamos, Santa Ynez, Los Olivos, Solvang, Buellton, Lompoc, Arroyo Grande, Grover Beach, Pismo Beach, and Avila Beach.
*Nothing in this article is intended to solicit listings currently under contract with another broker. Those considering a short sale are advised to consult with their own attorney for legal advice, and their tax professional for tax advice prior to entering into a short sale listing agreement - this article does not offer legal and tax advice.
Copyright © 2011 Tni LeBlanc *How Can I Do A BPO When I Don't Know Anything About the Property?*
4 Reasons Why 2011 May Be the Year For A Short Sale of Your California Home
5 Reasons Why A Loan Modification May Not Be the Answer for You
Confessions of A Short Sale Agent: I Already Hate You Bank
4 Biggest Mistakes Short Sale Sellers Make
What Information Does A Bank Typically Require For A Short Sale Package?