So, BPO scorecards were sent out last week . . and I am positive more than a handful of agents have seen a decrease in their overall scorecard. Normally, it is in fact the agent's fault; however, this last quarter seemed to have been notorious for bogus QC correction requirements. The requested corrections really make me wonder if those performing the QC have any idea what they are even doing. I mean, the engagement letter clearly states to follow BPOSG guidelines, but when they send you corrections, they request anything but.

Here are just a few of the crazy corrections I've been asked to make this quarter . . Along with my response. (I feel as if I am training them on how to perform their own job).

Has anyone else been having issues with QC/Corrections lately?

Example 1:

“It appears an adjustment was not made for Total room for Comp 3 Listing 1,3 even though it differs from the subject property. Per your engagement letter please provide commentary stating why an adjustment was not necessary.”

(My Response)

If you adjust per individual room, you cannot again adjust for the total number of rooms as this would be a double adjustment. Example:

  • Subject has 3 beds and 1 bath (7 total rooms due to living, dining and kitchen)
    • Comp 1 has 4 beds and 1 bath (8 total rooms) No adj needs to be made because it falls within BPOSG guidelines
    • Comp 2 has 5 beds and 1 baths (9 total rooms) adjustment should be made for bedroom only
    • Comp 3 has 5 beds and 2 baths (10 total rooms) so, adj should be made for individual bedroom, but not for bath as the bath falls within the guidelines.
    • Comp 4 has 5 beds and 2 baths and a den (11 total rooms) adjustment is made for 1 bed and now an adjustment can be made for total room count

I hope you follow. If you were to adjust for 1 bedroom and then make another adjustment to the total, you are basically making 2 adjustments for the same room

Example 2:

We request that you address the below conditions as your report has not passed through our Quality Control review. Please make the requested corrections and resubmit your revised report within 4 business hours. 

  • Adjustment has to be made in Sq. ft above grade for sold comparable 1 & 2 and listed comparable 1, 2 & 3, since it does not fall within the guideline of +/- 100. Please revise and update.
  • Adjustment has to be made in the bedroom section for listed comparable 1, since it does not match the subject property. Please revise and update.
  • Adjustment has to be made in the full bath section for listed comparable 2, since it does not match the subject property. Please revise and update.
  • Adjustment has to be made in the garage section for sold comparable 1 and listed comparable 1, 2 & 3, since it does not match the subject property. Please revise and update.
  • In the Parking stall section, please update the parking stall count as 1 for the subject property and sold comparable 1 & 3.

(My Response)

Please find the attached BPOSG guidelines and verify the information I have provided you below. I feel as if the majority of the adjustments you have asked me to make were unnecessary as well as unjustifiable. 

  1. Adjustment has to be made in Sq. ft above grade for sold comparable 1 & 2 and listed comparable 1, 2 & 3, since it does not fall within the guideline of +/- 100. Please revise and update.
    • Per BPOSG Guidelines, if the subject property falls between 0-1000 SF, the comps should be within ß250SFà or +/- 25% which in this case is 222SF
      • Sold Comp 1 is 749SF. That is 139SF less than the subject. This falls within both BPOSG parameters.
      • Sold Comp 2 is 966SF. That is 78SF more than the subject. This falls within both BPOSG parameters.
      • List Comp 1 is 1043SF. That is 155SF more than the subject. This falls within both BPOSG parameters.
      • List Comp 2 is 1169SF. That is 281SF more than the subject. This is 30SF more than BPOSG Parameters and Adjustment will be made.
      • List Comp 3 is 1007SF. That is 119SF more than the subject. This falls within both BPOSG parameters.
  2. Adjustment has to be made in the bedroom section for listed comparable 1, since it does not match the subject property. Please revise and update.
    • Per BPOSG Guidelines, the # of bedrooms that may differ from the subject is +/- 1
      • List Comp 1 has only 1 more bedroom than the subject. This falls within BPOSG parameters.
      • Also, the tax record for the subject property did not reflect a definitive number of bedrooms. The bedroom count was calculated by using the square footage of the property and comparing the GLA to that of properties with similar square footage within the subjects immediate neighborhood.
  3. Adjustment has to be made in the full bath section for listed comparable 2, since it does not match the subject property. Please revise and update.
    • Per BPOSG Guidelines, the number of bathrooms that may differ from the subject is +/-1
      • List Comp 2 has only 1 more bathroom than the subject. This falls within BPOSG parameters.
  4. Adjustment has to be made in the garage section for sold comparable 1 and listed comparable 1, 2 & 3, since it does not match the subject property. Please revise and update.
    • I am at loss as to why you feel Sold Comp 1 should be adjusted. Judging by your instructions to adjust all three listed comps, I would think you meant Sold Comp 2. In any case, as stated in the comments,
    • In regards to List Comp 2 and List Comp 3, it seems as if it would make no difference if adjustments were made as the subject property’s carport is a detached carport that appears to be of little or no added value. The tax records do not even reflect the subject having a carport or parking garage. The “carport” seen during the interior inspection looked as if it has been constructed by an amateur who did not use quality materials. This is also a detached carport that, although is legally an appurtenance, hardly adds value to the property.
  5. In the Parking stall section, please update the parking stall count as 1 for the subject property and sold comparable 1 & 3.
    • None of the properties have “Parking Stalls”. A “Parking Stall” is a designated parking area, commonly within two painted lines. For example: When you go to a grocery store or shopping mall, the parking spaces are considered “parking stalls”. No changes need to be made.

QC final response: 

Hi, I do accept your justification for all the rejections that I have sent you. But for the Garage section please update the below mentioned comments in the comments section for the subject property.

 

Example 3:

Hello, I apologize.  When did you get this error message? We were seeing this error last week and on Monday.  It looks like the order is in a hold revision status. Can you see if you can correct what is needed and resubmit?

(My Response)

  • In regards to population density, a good example would be Dallas. The site automatically has urban when more than half of the areas in Dallas are actually suburban. This creates info problems and with the majority if not almost all of the comps not meeting what the site says, it seems to overwhelm the site and ends up freezing.
  • The engagement letter states to follow BPOSG guidelines, but the parameters on the website do not reflect BPOSG guidelines. So, when I attempt to submit a completed order, I have to provide an explanation for every single field before I can even submit the order. Lately, I have even been receiving corrections due to this as well.

I have no issues with providing explanations so long as my score is not affected. In regards to website functionality issues, that is beyond my control. Hopefully with the above info, the respective departments can take necessary actions to resolve the issues

If anyone else has been witnessing the same, please share! Sometimes I have to step back . . take a deep breath . . and just laugh at things like this ;)

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Replies

    • Hi Sam,

      I was unaware that there was even QA personnel who work from home for $15 per BPO. In regards to $30 per BPO, I dont get less than $40 unless it is a desktop. Id rather stay at $50+, but it is what it is. It seems as if only one of the companies is really difficult when it comes to QA. It just so happens that they are the ones who pay the least as well. 

  • I always adjust for baths, above ground square footage, functionality, basements,  and finished basement sf separately. That said, the absurdity of some of the QC comments,  many of them automatic and repetitive before submission,  has caused me to severely restrict my services to clients with more reasonable forms and requirements. 

    • Cece,

      I completely understand where you are coming from . . sometimes I just want to ask them to re-assign the order ;)

  • I should also state... guidelines for comparables are just that. That doesn't mean adjustments shouldn't be made to properties for differing factors of value simply because the comp falls within the client's guidelines.

    • Yes, I completely agree with you Seth :) The issue is when they go back and forth on what they want. It's basically a lose-lose situation. 

      The other things are what gets me more than the adjusting of the square footage e.g., asking to add figures for parking stalls when there are none; asking me to adjust total room count when the room was already adjusted for; asking to explain why the comp is .68 miles away when it is suburban so the allowance is 1 mile. . . 

      I think they may have to optimize their site to reflect proper parameters. The corrections are getting out of hand. How do you respond to QC when you are sent corrections? I am not an appraiser so, I am interested in how yall would handle these situations. 

      • On the appraisal side of things, I have to add EVERYTHING in to a text addendum. Usually, I cite I have revisions to make based on "the following client concerns" and then I copy and paste them. That way, any stupid requests or non-sense items are on them and will be visible to end users.

        I then go through each item line by line with an explanation. I have to check my ego at the door because as an appraiser, the only thing worse than making a mistake is stubbornly defending that mistake no matter what.

        What I see a lot is when a company orders an appraisal and a BPO or two. They then compare my comps to the BPO and wonder why I didn't use the same comps the realtor did. Now... there are many MANY intelligent and caring realtors (I have that license, too)... but so many just bang out work orders from a BPO mill or pass the task off to an unlicensed assistant. I've seen so many reports come back wanting to know why I didn't use investor flip fully-renovated homes to comp with a trashed C5 or C6 condition REO. 

        I actually have to explain why I didn't use that comp in my report. 

        Also, most lenders want to see an adjustment for EVERYTHING that is different. I once had a report kicked back because my subject had 6 fireplaces and my comp only had 5. They said there should be an adjustment there and I had to inform them that sooner or later, the law of diminishing returns catches up and not EVERY unit adds value.

        Revisions can be the bane of my existence... and those are on well paid appraisals. For $40 BPOs... the bank should just be happy to get a report not written in crayon.

        • Wow, thanks for the informative response! I was unaware that the companies actually question the appraisers based on an agents BPO. That seems a little foolish as an appraiser is far more skilled in that area.

          Haha, yes . . $40 BPOs can be a pain, but if it gets you in the door . . well . . 

          I loved that comment though! ;) Thank you for your input. Its always nice when reminded that I am not alone with the QC nazis :)

  • You think this is bad. You should see the revision requests I get on an appraisal!

    Regardless, my perspective as both an agent and an appraiser is that ANYTHING and EVERYTHING that has an affect on value gets an adjustment. Total room count... not so much (unless we're comparing homes with dens to homes without... kinda depends on the functional use of those extra rooms). Also, GLA should really be adjusted for. Most clients/lenders will let it go for comps less than 100sf +/- the subject... but anything more than 100 feet is typically adjusted for since buyers will pay more for 1,750sf than they would for 1,600 in most markets.

    I do agree though... revision requests can be a pain... especially if the info is either already provided in the report and the reviewer missed it or if they want you to go through 5 comps that another (lesser attentive) agent used 3 months ago and explain why your 1500sf REO subject doesn't comp well with a 2000sf remodeled lake view pool home. :-)

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