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David, I could not agree more. It is a MUST to go and meet the BPO agent with comps in hand. I do
a full CMA now and hand it to them. It may be to help them (which I have no problem doing) but its certainly letting them know that I have done my homework and they will be challenged and be held accountable for what they turn in. Those agents who dont to this literally roll loaded dice.
Hi Rob,
I had this problem with one agent in particular and lost 20 deals because of his inflated BPOs until I put a stop to it (I know, I'm a slow learner). Here's what I did. I started tracking the agent, their BPO amount, and the amount the house actually sold for (either on MLS or at Sheriff Auction). I also started paying another agent I trusted to do a BPO "At the Same Time" of the other BPO to let the high agent know I was going to benchmark his BPO against another. After I had some "proof", I asked the high BPO agent when he called to do another BPO why his BPO came in at $XXX,XXX and the other agent's came in at $YYY,YYY and also why the previous 3 he did came in at one price and actually sold for considerably less. I e-mailed him the proof and told him I can not and will not allow him to do my BPOs anymore. When the bank calls to say "Why are you not letting this agent in?" I provide them the same proof and tell them to pick any other agent but not this one. By the way, this agent is the biggest REO agent in the area. Hmmmm, conflict of interest anyone? Of course this guy goes way high so the short sale fails and he stands a better chance of getting the REO listing. Not anymore with me. I'm done with this guy. He's cost me and the banks hundreds of thousands of dollars and has prevented homeowners from selling their homes at fair market value allowing a foreclosure to post to their record forever.
I always meet appraisers and BPO agents at the listing with a CMA, summary report, and repair list/bid (if applicable) so I can provide factual information to help them make an informed decision. The summary report provides info on the offer price if I have it and any circumstances relevant to the property such as anything unpermitted, major repair concerns, location conditions that affect value, etc... If the house is trashed, I will either provide an itemized list of repairs with estimated cost on the summary report or maybe even have a contractor friend write up a bid. I also ensure they understand within their realm of subjectivity in price, the lower the better for the short sale valuation. I get positive response 99% from agents and appraisers and appreciate the helpful information I've provided to make their job easier.
Dan,
You were reading my mind. I was starting to formulate how I would go about it and now you have given me the last peices to the puzzle. I have one REO agent here in Atlanta that does the same thing to me. If I chose the "glorious path of least resistance," to not build a case against her, I will get what I deserve. You would think the banks could simply stop this deceptive practice by barring agents who do their BPO (and their companies) from getting REO listings. Its just a blatant conflict and what in the world do they expect when they give them keys to the henhouse?
Thanks for the insights. Again, this forum is incredible
Dan Malone said:
Hi Rob,
I had this problem with one agent in particular and lost 20 deals because of his inflated BPOs until I put a stop to it (I know, I'm a slow learner). Here's what I did. I started tracking the agent, their BPO amount, and the amount the house actually sold for (either on MLS or at Sheriff Auction). I also started paying another agent I trusted to do a BPO "At the Same Time" of the other BPO to let the high agent know I was going to benchmark his BPO against another. After I had some "proof", I asked the high BPO agent when he called to do another BPO why his BPO came in at $XXX,XXX and the other agent's came in at $YYY,YYY and also why the previous 3 he did came in at one price and actually sold for considerably less. I e-mailed him the proof and told him I can not and will not allow him to do my BPOs anymore. When the bank calls to say "Why are you not letting this agent in?" I provide them the same proof and tell them to pick any other agent but not this one. By the way, this agent is the biggest REO agent in the area. Hmmmm, conflict of interest anyone? Of course this guy goes way high so the short sale fails and he stands a better chance of getting the REO listing. Not anymore with me. I'm done with this guy. He's cost me and the banks hundreds of thousands of dollars and has prevented homeowners from selling their homes at fair market value allowing a foreclosure to post to their record forever.
I agree to go. Our company received received communication through management, that we as agents are not allowed to provide comps to the BPO agents, stating that what ever information we give them, they can't use. I too have had several BPOs come in too high, that I wonder what the BPO agent was smoking. Seeing the same thing as I have lost the fight and low and behold the BPO agent gets the listing and lists it too high-stating that it's the number the bank picked. I had on in WI that the bank purchased the house back at the sheriff sale for $209,??? and the listing comes back on the market for $275,000...
Rob Carrino said:
David, I could not agree more. It is a MUST to go and meet the BPO agent with comps in hand. I do
a full CMA now and hand it to them. It may be to help them (which I have no problem doing) but its certainly letting them know that I have done my homework and they will be challenged and be held accountable for what they turn in. Those agents who dont to this literally roll loaded dice.
I agree to go. Our company received received communication through management, that we as agents are not allowed to provide comps to the BPO agents, stating that what ever information we give them, they can't use. I too have had several BPOs come in too high, that I wonder what the BPO agent was smoking. Seeing the same thing as I have lost the fight and low and behold the BPO agent gets the listing and lists it too high-stating that it's the number the bank picked. I had on in WI that the bank purchased the house back at the sheriff sale for $209,??? and the listing comes back on the market for $275,000...
Rob Carrino said:David, I could not agree more. It is a MUST to go and meet the BPO agent with comps in hand. I do
a full CMA now and hand it to them. It may be to help them (which I have no problem doing) but its certainly letting them know that I have done my homework and they will be challenged and be held accountable for what they turn in. Those agents who dont to this literally roll loaded dice.
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