Today I found it strange that my broker pulled me in his office, and stated that he went to a seminar over the weekend, and they had a discussion on agents and BPO's. He said they informed them that the banks are going to stop using agents to do BPO's. when I asked him to eloborate he said he didn't remember exactly what was said. Then he went on to say we need to get you weened off of BPO's. Now, how should I take that comment? Has anyone else heard this? Should I be concerned? Or is he upset at the fact that BPO's and REO's are my main focus? You be the judge.

I'd take it at face value... I think if he wanted you to quite BPO'ing he'd say so. He heard something somewhere that lead him to believe BPO volume would drop dramatically (which could be gospel truth or total BS and likely is something in between that has to do with some aspect of BPO's)

BPO's have been a huge help to me this year, but I don't think they can really be a main business...even when hot... they can be a help or a part of an REO business. Not an end in themselves.

If you really enjoy the valuation part, get your appraiser's license and get paid for it.

My $0.02... for free.

You may also consider the possibility that he meant that agents (salepersons) may no longer be able to perform BPO's. Possibly meaning that only licensed Brokers can do them.

In that case, just take the broker's exam and you're covered.

Have a Great One!!!

Jen

In a recent newsletter in our state there was an article on agents doing BPOs. The gist of the article was that agents are not supposed to be doing BPOs unless it is for a potential seller or purchaser (in AL). My fellow
"BPOers" I have talked to are no longer doing refinance - only those for foreclosure. I am considering getting my appraiser's license.

ME TOO!!!

In Indiana, salespeople can not do CMAs/BPOs for a fee - only brokers. If that's the case in your state, then no big deal. Get your brokers' license. Does anyone think that any of the states will eventually outlaw brokers from doing BPOs altogether and only allow appraisers? I hope not. I would think that the banks would fight it because lets face it, banks are saving a ton of money from getting BPOs done on properties instead of appraisals. BPOs are a significant part of my income so I'd be hurting if I couldn't do them anymore.

It sounds like bull from your broker,they want you out closing deals and making them money not lining your pockets with bpo's.This is why i am fixing to go for my brokers liscense in case it gets to the point of choosing it will be my decision and not theres on what i do.

I am glad that you said that because I was going to say the same thing. Many brokerages are hurting right now because of lack of sales and so many agents leaving the business and especially if you are with a small brokerage and maybe E&O is required in your state, he may not be able to keep it up and therefore, does not want the liability. You may want to ask him straight up and then make a decision on what's best for you, not him or his brokerage. I certainly do not want to assume anything or make false judgement - just a thought.

what state are you in ?
I heard on one or two states that the state legislature are thinking of using only license brokers or agents to do BPO's to cut down on scam, fraud and the bad stuff.

not sure if the state was Rhode Island.

read it on REOmagazine I believe

How do I get this REO Magazine?

I have my Appraisers license so it mat bea blessing here..sorry

Gary Taylor I agree with the appraiser's license advice. I have not been on the board much since I am about to complete the last exam for the first license in appraisal. Get paid. When I saw what I was being asked for on the BPOs I felt I needed more money. I would also agree with all who also say become a broker, with these 2 you are in better control of your business.

If anyone is considering getting their appraisal license, you'd better hurry. Big changes in education level and experience hours are taking effect 1/2008.

Aren't they going to require a college degree for an appraiser's license? And what if you get all your classroom hours in before then, but not all your apprenticeship hours?

I cannot see them not allowing brokers, but I can see them requiring two or three years minimum real estate activity in the market area. I even would like to see the minimum being a two-year associates degree in real estate.

There are way too many first year, even first month, real estate agents doing BPO's thinking they have a clue about what they are doing.

I had one last week where the asset manager emailed my back for a clarification on why I used the comps I did for a hundred year old historical home..a really nice Victorian under renovation that was thirty miles away. I stated, that I used the best comps available.

She said the "second" bpo agent used a sold comp directly across the street and "why did I not use it?" "Please look at it and use it as a comp and re-adjust your work asap as you are late with your work."

After a quick check with the tax appraisal office I went out and took a shot of the vacant lot at the "best comp" address. The other agent just made up a house on a vacant lot.

I email the image to the asset manager and after I hinted, perhaps I don't need to work with a company that questions my ethics, and she appoligized for her remarks. She said the other agent was a new agent for them and would not use him again.

Another case last month on a clarification another agent had a house value of more than 50% more than I did. After a quick investigation, I determined that the other agent "guessed" at the age of the house as 5 years old and found some really good comps in that age range in a newer rural subdivision.

The tax appraisal office showed the age at 27 years and obvious the other agent either didn't ever check, didn't care, or was totally unethical in his work.

Anyone above room temperature would know visually, from the roof, the style, the neighborhood, that the house was not five years old.

Since the subject property was 35 miles away, I would bet most anything the the other agent did not even view the property but sent out someone else to take the photos.

That is why I take pride in being able to tell my clients that I have done more than 2000 bpo's and have viewed each and every one of the subject properties myself.

I do get tired of following after both incompetent and unethical agents justifying my work.

This is serious business and you can get sued and even lose your license if you are unethical or incompetent. Buyers are buying houses based on our numbers, Owners are getting PMI's dropped based on our numbers, Buyers are getting loans based on our numbers. Owners are getting refi's that may safe them from bankrupcy based on our numbers.

Our clients deserve our best.

Gig'em; I agree with your comments on the way we should be doing our business, but I cannot see requiring an associates degree in RE to do BPO's. In our area, there is no college offering anything but a basic pre-license course. Many of us wouldn't be able to practice RE if that was a requirement. That said, I think a minimum of 2 years re practice in your area is realistic and would sure help ensure better quality (if the agent is ethical and honest in the first place). I personally accompanied my boss on several appraisals and helped him find comps, etc- did some practice reports just to get the hang of valuations and basic appraisal practice- long before i ever signed up to do BPOs. I take what I do very seriously, and I'm always thinking about how much impact my little $50 job may have in the economy, especially if I do it poorly. What we do has an effect on the market- if anyone doesn't want the responsibility of that, they need to quit doing BPOs.