Once one business cuts its cost to win the contract for nationwide coverage of BPOs and then reduce the price paid to Real Estate agents, we (as Independent Contractors) suffer from the reduced fee structure. Surely other firms will quickly pick up on the idea and say hey why pay more when we can get them for less. Then the pricing wars begin and from there its a "Downward Spiral" very similar to a toilet flushing.
As this race to the bottom accelerates, You'll have fewer and fewer alternatives unless of course at some point you want to work for nothing.
At least ponder this idea before you accept the next Low Fee BPO, Please don't take part in the "Race to the Bottom"
Comments
I will NOT accept a low fee. My territory is very rural and not subdivisions. With the gas prices AND my time spent, I will not work for free either. I list REO's as well and if I loose one or two because I wouldn't do a BPO for $40, OH WELL! My beginning amount for a drive by full report is $65.00 depending on range (most of mine are over 15 miles from nearest comps) and $125 for interior, non-negotiable. I have been in the business for over 17 years and can NOT afford to Race to the bottom.
If no agent will accept low fees, the price will go up. As a professional REO agent, with all the credentials, I do not work for free!
I know a company that pays $7.50 for a drive by inspection and $15.00 for an interior. So.......yes, BPOs have become a race to the bottom.
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