A BPO for anyone interested

[xmtpedprl]

Hi,

There's been a lot of talk about BPO's lately, who should do them, what effect they may have on us (as Appraisers), their effect on the lenders calling for them, etc., so for those who may have never seen one, here ya go (and no, I did not make this order up). This one just hit my e-mail a few minutes ago:



SUBJECT PROPERTY INFORMATION
Borrower:UNK (Person)
Property Address:1234 Stret
NORTH AURORA, IL
Description:

PHOTOS
Subject PropertyPhotos Required: YES
Photo (Addr Verification), Photo (Street), Photo (List 1), Photo (List 2), Photo (List 3), Photo (Sale 1), Photo (Sale 2), Photo (Sale 3), Photo (Front)

SPECIAL INSTRUCTIONS
1.All comps must be w/in 10% of the subjects GLA or make EXTENSIVE COMMENTS to the effect. 2.All comps must be w/in 10% of the value you are giving to the subject or make EXTENSIVE COMMENTS to the effect. 3.The phrase Best Comps Used/Available is NOT an acceptable comment. 4.Client requires additional comments on subject such as interior info, neighborhood data, marketability in the area, etc. Please comment on any of these that would affect the value of the property. 5.Comps must be w/in 6 months if possible. If no comps are found, keep proximity close and go back 18 months. COMMENT EXTENSIVELY on how distant and how dated that you went in order to obtain these comps. 6.REOs are only to be used if area is REO driven and you must provide extensive comments to that effect. 7.In REO driven areas there must be 1 sold and 1 listed comp that are NON-REO. 8.Address verification is required on all orders. If unable to obtain address verification photo, please provide comments as to why you were not. 9.MLS is acceptable to use for comp photos; however if photo is not of a good quality, originals will need to be taken of comps. 10.For Interiors- Photos must be taken of ALL interior rooms 11.Estimate GLA if county records are incorrect or missing. Make extensive comments. 12.Photos must be clear and labeled correctly or must be replaced. 13.Provide itemized list of repairs and cost to cure. 14.All comparable sales/listings MUST be within subjects immediate market area. If comparables are unavailable within the subjects immediate market area (within 1 mile), please provide detailed comments regarding the lack of sales that are truly comparable to the subject property. NOTE ANY VISUAL CLAIMABLE INSURANCE DAMAGE

Due Dates
If you accept, this BPO and Photos is due in our office by: Nov 1 2007 12:02PM
Payment for successful completion of this BPO is: $45.00

 

[Carnivore]

Today I was watching business pundits talk about merril lynch. Pretty much they said no one on wall street can figure out why ML had a 8 billion dollar right off!

Whats worse is they said there is lots more of this buried in walls street that will soon surface.

wooo hooo REO TIME

 

[Don Clark]

Hi,

There's been a lot of talk about BPO's lately, who should do them, what effect they may have on us (as Appraisers), their effect on the lenders calling for them, etc., so for those who may have never seen one, here ya go (and no, I did not make this order up). This one just hit my e-mail a few minutes ago:



SUBJECT PROPERTY INFORMATION
Borrower:UNK (Person)
Property Address:1234 Stret
NORTH AURORA, IL
Description:

PHOTOS
Subject PropertyPhotos Required: YES
Photo (Addr Verification), Photo (Street), Photo (List 1), Photo (List 2), Photo (List 3), Photo (Sale 1), Photo (Sale 2), Photo (Sale 3), Photo (Front)

SPECIAL INSTRUCTIONS
1.All comps must be w/in 10% of the subjects GLA or make EXTENSIVE COMMENTS to the effect. 2.All comps must be w/in 10% of the value you are giving to the subject or make EXTENSIVE COMMENTS to the effect. 3.The phrase Best Comps Used/Available is NOT an acceptable comment. 4.Client requires additional comments on subject such as interior info, neighborhood data, marketability in the area, etc. Please comment on any of these that would affect the value of the property. 5.Comps must be w/in 6 months if possible. If no comps are found, keep proximity close and go back 18 months. COMMENT EXTENSIVELY on how distant and how dated that you went in order to obtain these comps. 6.REOs are only to be used if area is REO driven and you must provide extensive comments to that effect. 7.In REO driven areas there must be 1 sold and 1 listed comp that are NON-REO. 8.Address verification is required on all orders. If unable to obtain address verification photo, please provide comments as to why you were not. 9.MLS is acceptable to use for comp photos; however if photo is not of a good quality, originals will need to be taken of comps. 10.For Interiors- Photos must be taken of ALL interior rooms 11.Estimate GLA if county records are incorrect or missing. Make extensive comments. 12.Photos must be clear and labeled correctly or must be replaced. 13.Provide itemized list of repairs and cost to cure. 14.All comparable sales/listings MUST be within subjects immediate market area. If comparables are unavailable within the subjects immediate market area (within 1 mile), please provide detailed comments regarding the lack of sales that are truly comparable to the subject property. NOTE ANY VISUAL CLAIMABLE INSURANCE DAMAGE

Due Dates
If you accept, this BPO and Photos is due in our office by: Nov 1 2007 12:02PM
Payment for successful completion of this BPO is: $45.00

I believe you.

I once had an appraisal challenged by a 72 page BPO. They probably got $50.00 for that one

 

[Don Clark]

Today I was watching business pundits talk about merril lynch. Pretty much they said no one on wall street can figure out why ML had a 8 billion dollar right off!

Whats worse is they said there is lots more of this buried in walls street that will soon surface.

wooo hooo REO TIME

Carney,

Nah! They will just order new BPO's

 

[Ross (CO)]

Let's just hope that the rising tide of future REO biz will bring an equally rising tide for the fees that should be paid to compliment the ever-increasing dictates of assignment "instructions" that have become more noticeable with each passing month !

As for Dave's shared BPO order.....was it received because someone in Dave's office is a licensed realty agent, or because the client knows that Dave (and any others) are all appraisers ?

While some of the defenders of appraisers-doing-BPO's will always come back and say that they are done "for property listing purposes"......hmmmm, interesting, I guess. Look at instruction #4 closely within that long listing shared. Ooooopps ! I guess the client blew it ! The client asks that the provider comment on whether certain aspects of the property/market might have any impact on "VALUE" ! In accordance with what it is they are ORDERING.....they should have asked if any such comments relate to impact on "PRICE".

The client just revealed what it is they are really asking for there.....and they expect all that work......for a $45 fee.

The race to the bottom is definitely fast......and verifiably furious.

 

[xmtpedprl]

Ross,

We receive these because this particular client is also a provider of appraisal requests for the same clients who (more often than not) order these goofy things. We get them simply because we're an approved vendor, that's all. (By the way, I get a half dozen or so a day for Colorado, as well!)

I think these devilish devices are going to be the cause of so much confusion and loss of value for the lenders as time goes by that we'll some day look back an marvel at how they were used. Much like how ARM's, etc, were used. People just don't get it.

Dave...

 

[Pamela Crowley (Florida)]

If most States say a BPO can only 'legally' be done in an effort to procure a listing, then how about they CANNOT be paid for it?!?!?!?!!!

 

[deturner]

If most States say a BPO can only 'legally' be done in an effort to procure a listing, then how about they CANNOT be paid for it?!?!?!?!!!

I like this idea. I haven't seen an agent get paid to do a CMA for a listing appointment (I know I wasn't paid when I did them). Why pay them for a BPO if it's for listing purposes?

Think I'll mention that next week at the board meeting.

DaveT in NC

 

[Workbox]

If most States say a BPO can only 'legally' be done in an effort to procure a listing, then how about they CANNOT be paid for it?!?!?!?!!!

Now you do know you just gave some of them Folks some Ideas. Just wait for the flood of MEMOs. Realtors are going to Flip.

 

[Brad Ellis]

Pam,

I am not sure "most" states have the ban but where they do you will normally see the wor4ds, "...for a fee..." in the statute.

BTW, brokers routinely violate this.

Brad