Auto Accept is killing the industry

It is rapidly becoming apparent that the auto accept industry is killing the REO business forcing companies to do everything possible to combat them. The latest announcement by RReview that they will be moving away from broadcast orders says it all. I cant understand why agents feel they need to take every single order the only real winners are small BPO companies that love the way there orders are taken quickly ( at low fees to most of the time)

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  • I think there is a MUCH bigger interest that some of you are forgetting. Working and viewing this from the other side, gives another more serious perspective greater than the lost of 50 bucks per bpo. Banks dealing with a pre foreclosure or short sale rely heavily in most cases on bpo's to determine their next move. Depending upon value, it could be the savior or demise costing a homeowner viable options to keep their homes. As a short sale referral agent, I have had properties come to me that the bank wants me to list with a totally unrealistic "approved" price. This "price" was based on a most likely automated and outsourced bpo. It have the bank a false sense of value and potentially lessened the seller's options. Commonly, I see a trend where apparently when the bank feels a property is worth more, or there is the potential for equity, to be less flexible in options for the seller to keep or be approved for a modification or short sale a distressed home in lieu of foreclosure. Once the erroneous bpo value comes in, the banks see nothing but dollar signs and it's off to the races!!!!
  • Touche for you Christian. Well said. I recall a few years ago chatting with a broker in Miami, she said she does 300 BPO's a month and NEVER LEAVES HER OFFICE! Good God what are doing. My take on the auto accept folks is this, I suspect they are using non license folks to do their photos. The client is paying the AGENT to do the drive by and comment on it. I suspect they use office staff to do the input. I wonder with RRReview how many of their clients know that orders are being accepted at such a rapid pace. I call in now to registar my complaint with them when this happens. I now hear that mid March is the kick off for the new system. Just yesterday I saw 20 jobs just disappear the minute they hit my Outlook Mail!  Early evening even one will drop in and GONE, no security code, NADA - just gone. This is a terrible way to do business. I advocate folks at least sending up an e-mail each time this happens. The more voices the better.

  • Michael, you do raise some very good points nothing that I can disagree with.  The BPO companies and providers have made reduced the service to a commodity. If you won't do a BPO for $30 the next guy will. The industry looks the other direction because they know that without seeing the inside of the house the valuation is a guess at best.  The driveby BPO finds a place in the property file, fulfills a requirement and gets checked off the list.  

  • I think you all miss the point. I really don't believe we are in a downward race with the Professionals. we are in trouble becasue of the lack of the BPO providers policing the actual product they are satisfied with providing their clients. Unfortunately they don't care AND THE CLIENT REALLY DOESN'T CARE OR WANT TO KNOW! We all know it is not worth our time and actually are insulted by what they are paying. Here is what I'm pretty sure is happening. R.E. agents are NOT actually doing the work. There are bad apples in every group and they use outsourcers like those in India to Capture the BPO for $4.00 Then they pay another $8.00 for the completed client ready product and either just take the pictures or pay a nominal fee and send these there also(ie; need to hire student to locate and photo properties). They do absolutely nothing and receive approximately $20.00 per order and have an extremely wide zip code range.!!!!!!!!!!! It all adds up to big money.  This can be stopped if the BPO providers would simply look at the range of those that complete a few hundred BPOs a month.  Not possible to do that with any real degree of accuracty and professionalism.  I had someone in India actually accidentally call me by name once when I called in to ask why a BPO was taken so quickly it was impossible.  Well He thought I was the agent that accepted the order and was asking for more time.  When I checked this agent in the DRE he was located over 50 miles from the subject on the other side of a mountain range.  Would any of you drive 100 miles to inspect a house for $40?  Neither would I.  As for RRR it is interesting they outsourse all the orders through India.  I know of one capture service, in India, that specializes in RRR orders, and another completion service also located in India.  So for $12.00 you can buy the order and have it completed and less the price of a (student to locate and photo reo properties, ever see that sign) you walk away with $20.00 for doing absolutely nothing.  RRR has been saying this and that since last Nov.  All are nothing but excuses and I would not be a tiny bit surprised if the connections go deeper then this.

  • I also fall in the same area as most of you. I have been doing RRRieview for over ten years and I also can be sitting at my computer watching 50 orders come up from RRRiview and can not get one of them. Face it does RRRieview really care about who does the BPO as long as it is done? I have called and talked to them about it and they gave me the same swan song and that they are working on it. This was years ago. 

  • Even though I don't do that many BPOs anymore as I've gone back to selling real estate since the market has turned itself around. Plus I make more money selling properties than doing BPOs. But I still get several emails and texts from the companies that I did and sometimes still do BPOs for and most of those orders are gone by the time I get signed in. And that's within seconds! That tells me that someone or several brokers/agents in my area are using auto acceptors. And those companies are allowing this even though in their fine print when you first signed up or emailed out a disclosure later saying that they will not allow this. 

  • Here is another cent......Why do they call them BPO's ( Broker Price Opinions) when mostly agents are doing them? If its an agent doing a valuation is that called a CMA (Comparative Market Analysis)? I think that any and all BPO's that were completed by an agent and not a Broker,,should be nullified! As you cannot pay an agent to do a BPO,,if they are then they are out of compliance and should pay the price...BPO's should only be done by Brokers,,who have visited the property and taken the photos,,,entered in the comp data personally,,NOBODY...else does my BPO's but ME...and I made $8,147 in 2014 just doing BPO's.

  • Hey Ron - You mentioned you send a list of the auto accept companies to the BPO companies, can you send that list to me also? I would be interested in knowing if any of them have been successful in auto accepting any BPOs of clients that use Realty Pilot's platform. We also monitor our system pretty heavily for this and for off shore ip addresses. We block off shore ip addresses but I would be interested in seeing if an auto accept company has gained access through a false user to set up the process. 

    I can say that no client would ever approve of an agent using auto accept nor off shore or out of office remote BPO assistance. There are QC checks that are done through modern technology that can determine if this is the case but we can't catch them all.

  • Thanks for the tip John!

  • Here is how I handle RRR,,when I get a call from them for a BPO I will say send it over to my email,,,when I click to the order,,the first thing I do is,,click on the decline button,,,then it ask why ,,I select too low fee,,then I suggest my fee,,on exterior orders I ask for $75.00...once I decline it,,I will wait for the email they send me with the link for the new order at the price I quoted,,,then I select it and accept it,,,then it will ask for the captia words,,these are there so there cannot be an auto BPO acceptance...this works for me all the time and I even get $125.00 for interior orders...If more agents KNEW how to work for more and not less then these companies will see that the work we do for them is worth it. DO NOT sell yourselves short just to get business,,WORK smarter not HARDER!!! Automated BPO companies SUCK!! and we should all go after them and they need to be charged with FRAUD!! my 2 cents. Thanks from John Giddens Broker/Owner Emrix Realty Inc North Fort Myers, Florida...20 years in the real estate business.

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