Do BPOs Actually Lead to Listings?

I spend time each day on Equator, struggling to beat out everyone else trying to get BPOs. I have help -- I'm not complaining on that front -- but each day, we try to snag a BPO or two. Then we go out to work on them, spending time driving, taking pictures, pulling comps, filling in the form, etc. We aren't looking to make a living on $50 BPOs, of course. We want to get listings!

However, are any of the homes on which we do BPOs ever going to turn into listings? I am beginning to lose heart that they will. Only one of the homes I've done a BPO on in the last many months has become a listing for any agent, and it wasn't an REO. The others still aren't even listed. I've considered the lag time between a bank taking title and actually getting possession and being ready to list it, but even with that, it doesn't add up. Our tax records change pretty quickly in our county, and the BPO properties aren't showing up as bank owned.

So why are the BPOs being ordered? Are they to support sales? Then why aren't they even listed as short sales? Are they to support the sales of nearby homes? Or are they to support loan modifications with principal reductions?

And most important for my business, will they ever become listings? I am seriously doubting it, and I am looking at the number of hours in the day and my profitability, and I think my time can best be spent on other activities.

Megan Zavieh

Mission Valley Real Estate Company

Fremont, California

http://www.mvreco.com

This is a lot of question! BPO leading to listing is shared by various opinion. I believe it does. Obviously the better BPO you are completing will retain the AM attention by seeing your name again and again. The property file is floating from desk to another with your BPO and name. It cannot hurt. $ 50 is not very much, but you also gain a better knowledge of the market and can develop an authority by having your name attached to many file. You should also considere other BPO company since they have various client. "Similar as subject property" will not do any good. You have to do better and any remark pertinent to the property helping the AM to make a better decison will be a must for your name. It takes time ... like good wine !

Ok, now that I have your attention, let me share some valuable insight into the BPO = REO myth. Not every BPO gives you the opportunity to get the R…

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Comments

Megan Zavieh February 11, 2010 at 9:20am

I absolutely hear your comments on the valuation practice. I have learned a lot from doing these BPOs. I just think that with only 24 hours in a day (darn!), I can spend my time on activities more likely to produce non-REO listings. It's true that we put together CMAs for friends, neighbors and family, and sometimes they list with us and sometimes they don't, but I do not put nearly the time a BPO takes into those CMAs. BPOs are full of time-consuming tasks that go beyond the type of valuation I do for clients. It turns into lots of busiwork to fill in the form, get error messages for some section that does not apply, go back and fix, etc.
Sam Shueh February 11, 2010 at 8:28am

As Alain stated the file with your name floats back to another person.
I got a call from a bank someone read my BPO done 1 year ago and asked if there is a change in valuation.
The guy said he likes my work adding a spice to often boring doc. He appreciates my verbal input. That is the best compliment whether getting paid or free. For many agents it is opportunity to hone in valuation skills. My $ # and appraiser's are not different these days. We do free CMAs everyday for friends, neighbors and do they lead to sales?
Chris Butterfield February 11, 2010 at 8:26am

I think that a lot of BPO's coming through these days are for companies purchasing loan portfolios. They will never be seen by anyone. The results will just be aggregated to see if the portfolio is a good purchase.

I agree with Jesse's post that the biggest reason to do BPO's is training. And the second biggest reason is to be ready to answer the question 'How many BPO's have you done?'

Once an agent starts getting assets, they usually taper off greatly on the BPO's.
H. E "Buddy" Brown February 11, 2010 at 8:12am

I share your pain. Hang in there.
Alain Thillois February 11, 2010 at 7:12am

I believe it does even the opinion can be different. Obviously, your name is attached to the property and the file is floating from desk to another. The better the BPO is completed, the best chance you have to develop an authority for your name. "Similar as subject property" will not do any good and you can do better than that by pertinent remark to subject property in order to help AM to make better decison. You should consider other BPO companies since they may have different client/lender. Like good wine...it takes time!
Alain Thillois February 11, 2010 at 7:04am

This is a lot of question! BPO leading to listing is shared by various opinion. I believe it does. Obviously the better BPO you are completing will retain the AM attention by seeing your name again and again. The property file is floating from desk to another with your BPO and name. It cannot hurt. $ 50 is not very much, but you also gain a better knowledge of the market and can develop an authority by having your name attached to many file. You should also considere other BPO company since they have various client. "Similar as subject property" will not do any good. You have to do better and any remark pertinent to the property helping the AM to make a better decison will be a must for your name. It takes time ... like good wine !
Heather Aragon February 11, 2010 at 5:30am

There are a number of reason a bpo can be ordered. (PMI removal, Insurance claim, loan modifications, short sales etc) My recommendation is to make sure you look at the company that is ordering them. I know in the past I have worked with Banks and they have sent me the org. BPO at that point as an asset manager I would call that agent that took this bpo and see if they would like to take on this listing I feel as an asset manager those agents take the time right then and there to do these Drivebys why not give them a shot at the listing as well. Have a great day.
Jesus (Jesse) Gonzalez February 11, 2010 at 5:26am

I wrote about this very issue back in Feb '09, you may want to check it out. http://reopro.ning.com/profiles/blogs/bpos-reos-myth

BPO’s = REO’s Myth

Ok, now that I have your attention, let me share some valuable insight into the BPO = REO myth. Not every BPO gives you the opportunity to get the R…
Michelle McPherson February 10, 2010 at 7:13pm

Yes, some BPO's you do will lead to Listings, but it depends on what kind of company it is. BPO mills will never give you a listing. Research the BPO company first.
Megan Zavieh February 10, 2010 at 5:51pm

Thanks, Jose. I will definitely read the thread. You are confirming in your post exactly what we've been suspecting.

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