Why SHOULD short sale agents do BPO's???
Often when I go on interior bpo's and the listing agent meets me at the house (this happens only about 10% of the time), I ask the agent if they do bpo's. Almost all have said they don't, more than half the time they ask why, here's why:
- You will be able to predict the value the bank will accept. When you get used to working the formula, you will be able to see that it's not that surprising what value the bank will come up with, and that it is not like many CMAs
- Your confidence for the value can be communicated to buyers' agents and your clients. "I've performed hundreds of BPO's which is how the banks determine value. Based on my years of experience, and offer for $__,000 is very likely to be accepted"
- When you meet the BPO agent, and you hand them comps, they won't throw them away! I have met dozens of agents who hand me comps, I've never yet received a set that would meet the BPO guidelines.
- If you get a bad BPO (and now you'll know), you will be able to dispute the value better, by showing which BPO guidelines the agent ignored and presenting better comps than the bpo agent.
- Short sales can be slow transactions. While waiting for short sales to close, it's nice to get a quick, if smaller check. I find that I can fit in 2-3 bpo's a day without it cutting into my time on transactions. That averages out to about $1000 a month, which can come in handy when you find out that there is another delay on your short sale.
Replies to This Discussion
-
Permalink Reply by Wendy Rulnick on
-
Jim - You bring up points most agents won't think about. You're right, agents who have not done BPO's don't know or understand the formulas that are required...
-
-
Permalink Reply by Michael Ackerman, CRS, SFR, on
-
Great post Jim!
I always bring comps, median price and median price per square foot. I kindly look the BPO agent (and or appraiser) in the eye, telling them we are in contract for $###,###. I also let them know what's in contract and if I know - where they're priced - although BPO's generally only want sold comps.
BTW If you have a lockbox on the property after you have a viable contract, you may wish to think about removing it and references to it on the MLS. Nothing like the 'human touch' when talking in person to someone who is going to play a role in getting your sale approved!
-
-
Permalink Reply by Jim Schneider on
-
Michael,
Good for you, meeting the bpo agent with great information puts you ahead of the pack (I'd say this only happens about 10% of the time). Almost all bpo's use three sold and three active comps, although of course any good bpo agent will give the most weight to what sold, because a high listing price won't sell and a low short sale listing price might be rejected by the bank. If there were a lot of lower list comps than sold comps, I'd probably adjust the sold comps down for market adjustment.
If you're meeting the bpo agent with solid sold comps, you're more than halfway there, but if you're gettting beat up by the competition down the street, make sure you bring the active comps to the agent's attention. As in, "I can't sell this house for any more than $__,000 because 123 Main is in better condition and is only asking for $x."
Might save your next deal!
Michael Ackerman, CRS said:Great post Jim!
I always bring comps, median price and median price per square foot. I kindly look the BPO agent (and or appraiser) in the eye, telling them we are in contract for $###,###. I also let them know what's in contract and if I know - where they're priced - although BPO's generally only want sold comps.
-
-
Permalink Reply by David R Haws on
-
Does anyone have some good contact information for me so I can start doing BPO's? Thanks everyone..
-
-
-
David,
I would suggest you go to http://bpo4agent.com/ this site has links to tons of bpo companies. I would mention that I personally had a very bad experience with evaluationsolutions, so , you might want to google the names of bpo companies before doing business with them, that way you don't end up doing bpo's that you don't get paid for.
Also, it is helpful to have the following information together for going through and signing up:
your license number, your managing broker's license number, your company's tax id number, a copy of your license (pdf or jpeg), a copy of your e&o insurance (pdf or jpeg), and if your broker and state license law will allow it, a letter from your broker saying you can be paid directly for bpo's (this will make your job and your broker's job a lot easier). Good luck.
-
-
-
THANK YOU SO MUCH FOR YOUR HELP...
Jim Schneider said:David,
I would suggest you go to http://bpo4agent.com/ this site has links to tons of bpo companies. I would mention that I personally had a very bad experience with evaluationsolutions, so , you might want to google the names of bpo companies before doing business with them, that way you don't end up doing bpo's that you don't get paid for.
Also, it is helpful to have the following information together for going through and signing up:
your license number, your managing broker's license number, your company's tax id number, a copy of your license (pdf or jpeg), a copy of your e&o insurance (pdf or jpeg), and if your broker and state license law will allow it, a letter from your broker saying you can be paid directly for bpo's (this will make your job and your broker's job a lot easier). Good luck.
-
-
-
No Larry, I'm in Chicago, the bpo companies listed there are almost all nationwide.
-
© 2024 Created by Short Sale Superstars LLC.
Powered by
**********************************
like buttons