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.

The associate's degree comment was for a real estate license in general.

This is the only business I know of where a person can spend a couple of months taking mailorder or online internet classes, take an easy exam and then the next day write a legally binding contract for a third party without experience.

A the minimum, there should be a one-year apprentice requirement like the appraisal industry used to have.

One thought on appraisers licensing. In most cases the AM companies are stating specifically that the BPOs are not appraisals and that they are not being done by appraisers.

Appraisal and BPOs are similar but two seperate animals.

As to some kind of requirements/experience for those who do them, yes, I am all for it. But I don't see it as any kind of state issue. Rather I think the AM companies need to have some kind of requirements and then some form of quality control.

Unfortunately some of them do seem to be just looking for warm bodies.

Steele in Minnesota

They are looking for the cheapest agent they can get that meets the minimum acceptable standards the bank requires.

Gig 'em, I have been pushing the same thing for 15 years, usually falling on deaf years. I really do believe that the minimum to take the real estate class/exam should be a two year degree and at a minimum, a one year apprenticeship. I also think that at the very least a course or two in appraisals could be a minimum requirement for doing BPO's. It could be a requirement with documentation that would be easy to get to prove that an agent has complied. I took two IFA sponsored classes a while back (actually, years!!) and I highly recommend it to anyone trying to do BPO's. I couldn't do this job without that valuable knowledge.

My broker told me today that she had talked with the lawyer for the Alabama Real Estate Commission. He told her we cannot do BPO's except for a listing we are getting. No BPO's just because they are for foreclosure purposes - we have to be assigned the listing. Not happy news in our area!
Angie

Ok here is the real deal.
I am sure if you check your broker most likely gives you 100% of the commission regardless of your split. You broker most likely feels you are spending to much time doing BPO's and not enough on listings where he/she makes some money. Although He/she can not really come right out and say it.

The real deal is what her Real estate Commission says, and it is consistent with many other commissions. Many agents are surprised to find out that BPOs for purposes other than listings are a violation of their state licensing law but those are the facts. Don't believe what's on this board call or write your commission. Just because a rule isn't enforced doesn't mean it's not there.

Angie, FWIW your broker did the right thing and went straight to the source. I'm sure it's discouraging, especially when you look around and it seems like everyone is doing it, but it is what it is. This is a tuff business and any source of income is welcome but your broker is ultimately responsible for your work product. He's just covering his rear.

For BOB H reo magazine is a magazine that focuses on reo agents,servicers,foreclosing attorneys,appraisers and about anything else to do with the default industry.

They just changes there name to www.dsnews.com
One year membership is 85.00,2 year is 135.00.

The articles are excellent and they interview the ceo's of freddie mac,fannie mae,auction houses,titanium solutions.

I have been subscribed for about a year and it's been worth every penny.

TargetRE
Please check again. What you will find is that yes you can do BPO's. However some commissions are saying you have to call it a CMA. Big deal, its a thing of terminology. Plus many commissions are saying that you can not charge if you are doing it for a listing or if you do not normally charge for this service.

Alan,
I checked again, her post didn't change. You can parse all day long, it's pretty clear.
It is a big deal and I'd like to see you stand in front of your commission and say "Big deal, it's a thing of terminology." And if it's not a big deal ask CC, EML, etc to change the header to CMA and see what they say. Also you'd be wise to not advise others on their state laws, I've always taken the position that an agent should call their RE Commission for clarification. FL differs greatly from AL.

Also here's a couple of links for you.

http://ncappraisalboard.org/bulletins/Fall01.pdf

http://www.re.state.az.us/documents/Dec01Bulbw.pdf

Target Re,
When I got home yesterday I started notifying the main companies I do BPOs for and at least a couple of them said they had been hearing about the Alabama thing lately. One said they had actually received a fax from the commission informing them of the stipulations on doing BPOs. I will miss the income but it will push me to do more on the listing/selling side of RE - which I should have been doing anyway!
Thanks for all the input from everyone.

I would think that if the Alabama RE Commission said that could not do BPO's under your RE license and your Broker, you might check with a real estate attorney to see if you could set up a small business and do them outside your company?

If a RE agent in Alabama doesn't do BPO's for forclosures, PMI's drops, equity loans, refi's, etc, who does them?

Gig em - But even if she set up a small business outside her company, she would still be doing them "under" her license because the BPO companies require a real estate license. All I can say is, I hope this isn't a trend. I'm sure the appraisers in Alabama are happy though.

I actually did do some checking an in your state of Alabama. It not the RE commission that has a problem with CMA’s and BPO’s. Its that giving an opinion of value falls under the definition of appraisals. And under Alabama law real estate agents/brokers are given an exception to that to help buyers and sellers of real estate. So yes BPO's or drive by appraisals can be done for lenders they just need to be done by appraisers. Real Estate agents can only help their buyers and sellers with an opinion of value.

I bet the appraisal schools in Alabama are going to be busy soon.

amplet, the requirements are much more than what real estate agents have to go through and finding a mentor is very hard. Also, as was mentioned in the thread, starting 1/1/2008 an associates degree will be required for residential certification and a bachelors for commercial. With the training period for residential being a minimum of 2 years if you start now you'll need that degree to become certified.