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38 BPOs in 3 days, No Problem.

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panappr

Elite Member
Joined
Dec 5, 2007
Professional Status
Certified Residential Appraiser
State
California
Just reporting some facts

I am with a real estate agent as I am typing this, and she is pretty astounded to here that she just received 36 BPO assignments from a LARGE AMC to be done in 72 hours for a large lender/client that has recently been under fire. She is frantic at the moment and is trying to compose herself so she can start downloading and begin processing them. Fee = $38.00 per assignment.

I wouldn't believe this if I was not looking at it with my own eyes, however, I am looking at the BPO form 3 pages and pretty detailed. I've never seen one before, but it requires 3 sales and 3 listings, no adjustments, but lots of information. Which also includes comments on Subject condition, housing supply, number of listings, number of house in direct competition, average marketing time for comparables, market conditions with percent of monthly depreciation of appreciation, and market data comments. Also asks for 3 estimates of value "as-is High", "as-is Low", and "suggested listing Price", as well as repaired value if necessary.

How is this humanly possible, and what kind of quality could you expect, and most importantly how reliable will any of the information be. And what are they using this information for!!!! I would have a hard time concentrating on 1 or 2 in a 72 hour period.

This has to be the most pathetic situation I have ever seen.

She said she once did 72 in about a week and a half. Like this is no big deal.

Now, she just asked me "what does above grade mean"?
 

Randolph Kinney

Elite Member
Joined
Apr 7, 2005
Professional Status
Retired Appraiser
State
North Carolina
Now you know the lender's true concern; fast and cheap! :)
 

Blueprint

Senior Member
Joined
Aug 25, 2005
Professional Status
Certified Residential Appraiser
State
Oregon
Sign me up for that one.

Tell her that "above grade" means that the property, as a whole, must rank as an A or B in her books. Anything she percieves to be a C, D or F property is considered to be "below grade".
 

Roy Courtney

Senior Member
Joined
Dec 8, 2006
Professional Status
Certified General Appraiser
State
Texas
I personally think this type of situation could end up to be good for us. These major lenders are turning their stock values from $35.00+/- per share into $1.50+/- per share it could cause "some" concern for the investors. For example if you had invested 1 million dollars into each of Washington Mutual, National City and Indymac at their high for the year you would now have: WM = $150,939.13; NCC = $148,757.94; and IMB = $42,836.04. So a $3,000,000. investment would now be worth $342,533.11 minus broker commissions (ha ha). You lost $2,657,466.89 just on these three stocks alone! But, don't worry you can make it up on using BPO's, AVMs, etc. instead of real appraisals! Maybe some of the "real" investors will grow tired of this crap!
 

The Warrior Monk

Moderator
Staff member
Moderator
Joined
Mar 30, 2005
Professional Status
Certified General Appraiser
State
New York
One of the agents in the office was offered $45 for a BPO. He looked at what was required, and negotiated a fee of about $300. Even still, he decided that fee wasn't sufficient for the time and work required, and never did another.
 

Blueprint

Senior Member
Joined
Aug 25, 2005
Professional Status
Certified Residential Appraiser
State
Oregon
One of the agents in the office was offered $45 for a BPO. He looked at what was required, and negotiated a fee of about $300. Even still, he decided that fee wasn't sufficient for the time and work required, and never did another.

The masses of agents won't do what this agent did. Hopefully the masses will get thrown in the gutter over the next few years. The intelligent common sensors will persevere.
 

Bama Bayou

Senior Member
Joined
Oct 19, 2006
Professional Status
Certified General Appraiser
State
Alabama
If only the majority of APPRAISALS did not fit into that category, we WOULD all be better off.

Excellent point, but maybe, just maybe, the flight to quality will begin.
 

RSW

Elite Member
Joined
Feb 18, 2002
Professional Status
Certified Residential Appraiser
State
Tennessee
Tell the agent that above grade is a quality rating.
 

Workbox

Elite Member
Joined
Mar 2, 2005
Professional Status
Certified Residential Appraiser
State
Colorado
I am enjoying my weekends.
 
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