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 very good question as BPO's and REO listings go hand in hand but some companies are only BPO orientated and they will never issue a REO. But then again the client sees your name on the BPO and may contact you when they need an agent who has demostrated proficiency with a BPO price and has accurately determined the value. BPO forms do not give you the BPO person enough comment sections to write intelligent comments about the exterior condition and what an agent sees with a drive-by inspection. Not all BPO's are for a pre-foreclosed or foreclosed property. They can be for determination of market value for the lenders use, for reducing mortgage insurance, and for a multiple of reasons, BPO's are vital -- the ones I usually get are the ones which have been passed around the block as no comparable properties were found or a value could be determined or you are giving an opinion of value for a short sale by the client. To get back to the topic, when you ask opinions on this forum most agents will tell you which companies issue REO's from BPO assignments. BPO's keep us fine tuned toi the changes in the market.

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Comments

Rick (Enrique) Lopez February 16, 2010 at 5:28pm

these are the main reason for a BPO to occur (not in order) Pre-Foreclosure, Default, Private Mortgage Insurance deletion, and Foreclosure
Brenda Lane-Oliver February 16, 2010 at 3:35pm

I agree. I was told today that many agents complete 6-10 BPOs weekly. I only do about 4-6 a month, because my goal as a listing agent is to get "listings" and not just do BPOs. Mind you, I am not ungrateful, it's just that I would rather focus on short sales and reos.
Megan Zavieh February 12, 2010 at 3:28pm

I have been working with Equator, and they always have a banner on their page about how many thousands of listings were assigned through them the prior month. Yet, none of my BPO properties seem to become listings.
Donald C Hascall February 12, 2010 at 2:54pm

This is a very good question as BPO's and REO listings go hand in hand but some companies are only BPO orientated and they will never issue a REO. But then again the client sees your name on the BPO and may contact you when they need an agent who has demostrated proficiency with a BPO price and has accurately determined the value. BPO forms do not give you the BPO person enough comment sections to write intelligent comments about the exterior condition and what an agent sees with a drive-by inspection. Not all BPO's are for a pre-foreclosed or foreclosed property. They can be for determination of market value for the lenders use, for reducing mortgage insurance, and for a multiple of reasons, BPO's are vital -- the ones I usually get are the ones which have been passed around the block as no comparable properties were found or a value could be determined or you are giving an opinion of value for a short sale by the client. To get back to the topic, when you ask opinions on this forum most agents will tell you which companies issue REO's from BPO assignments. BPO's keep us fine tuned toi the changes in the market.
Rick (Enrique) Lopez February 11, 2010 at 7:53pm

it depends on the company you do bpo's for some will some will not
Billie Dalessio February 11, 2010 at 7:02pm

Megan, the quick answer yes & no. Some bpo's are never going to turn into anything, some bpo's are not even going to have your name on them when they reach the decision maker. I have received listings through bpo work, but the ratio is super low. A few months ago I received a call from a mortgage person in Cali, wanting information on a listing that was on the market here in Connecticut; could I tell him what it was worth, as he had a mortgage client that made on offer on it through the listing agent & didn't want to have her offer more if it wasn't going to appraise. OK, so no chance of any money here, but I said sure I'd help him, it's my backyard. I gave him my thoughts and sent him some comps to support the offer. Well.. the deal didn't work out, seller decided not to sell, and a month later he calls me & gives me the buyer. She closed on a home for $360,000. in December, and has already referred another client to me- so sometimes you really don't know where the next good contact is coming from. BPO's will help you know the market better than anything else, and you may get lucky.
H. E "Buddy" Brown February 11, 2010 at 10:30am

Magan,
As long as realtors believe they are going to get listing from BPO's, the BPO company have it made/they pay nothing for all the time and energy it takes to complete a BPO. I have never recieved a listing from doing a BPO and I have done hundreds/It seems like a racket to me as well as the website that charge a fee/Very little value and over time- a lot of money/ Good luck
Debra Lloyd February 11, 2010 at 10:06am

Is okay for us to exchange phone numbers if so call me 901-748-5404 or send me yours
Megan Zavieh February 11, 2010 at 10:02am

Thanks for the encouragement, Debra. Sometimes it's hard to keep hopeful.
Debra Lloyd February 11, 2010 at 9:38am

Megan all I can say is to stay READY the come when you less expect.

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