Bank of America; Invitation to Join Bank Panel for Residential Valuations

[J Grant]

I tried a few BPO's back in teh day and it was awful. They are done over an online system ( not software, typically) and it is very cumbersome. To do one properly, IMO takes about 2 hours, not 45 minutes. if one has to drive to a property to take a photo the profit evaporates.i

 

[NC Appraising]

What I learned about BPOs:

"How Much Can You Get Paid From A BPO?

In many cases in my experience, BPO agents are usually paid $40-$80 for valuations of houses / condos. This will depend on area, type of property and whether if it is a drive by or interior BPO. Vacant land parcels can be a much smaller fee while commercial real estate, can be hundreds of dollars."
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I usually estimate around 45 minutes to complete the report. But this does not take into consideration drive time and time on site.
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We listed and sold a lot of Short Sale properties. There was one BPO agent who did a ton of BPO’s just on our listings alone. I asked him one day how much he was making. He was making around $5,000 a month.
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How To Get BPO’s Assignments (Broker Price Opinions)

If you want to make fast money as a real estate agent you may want to consider getting BPO (Broker Price Opinion) Assignments.

www.realtourlife.com

Back in 2009-2014 I was a approved Fannie NPDC appraiser and all of HUDs vendors. I got to know most of the big players in the short sale and REO world.

Three sides of the BPO game, with some being mixed together:

1. Agents doing BPOs just in hopes of getting the listing. Most were doing them for $40.
2. Agents doing them as a side gig for extra money.
3. Agents using office staff to do the BPOs for an extra income stream.

 

[RCA]

The only value this license had is that financial institutions used to have to go to us for any and all valuation needs. Over the past decade I’ve seen so much business be handed off. I’m not sure what the value in this license is anymore.

Even the "on paper" "most qualified" appraisers are proven to be kind of dumb. That's the problem.

That's not to say that some appraisers are not genuinely smart. But I would say the smartest Real Estate Brokers in California - are "generally" quite a bit smarter than the smartest Appraisers.

In any case, the banks and lenders are looking for rubber stamps - and they will go with the cheapest that passes muster. This invariably goes back to the GSEs. So, the GSEs must be putting their stamp of approval on these moves. And, quite frankly, they are most likely not impressed by the typical appraisal. Also, on the other hand, the GSEs themselves don't have the wherewithal to differentiate between the average and an excellent appraisal, - as they don't think it makes any sense to deal with so-called excellent appraisals, when they can't even get, according to their murky mundane standards, even satisfactory appraisal reports.

 

[NC Appraising]

i don't think there is any different that they are doing than before. having been involved in pre foreclosure & REO appraisals. typically, there has been a broker who handles those sales for the lender. they always did a BPO for the listing. when i did REO appraisals and there was a broker already involved, they did a BPO for the listing price. now for pre foreclosure, servicing companies have to do them each year for book keeping loses, if any. i don't know those rules that a servicer has to have an appraisal for that book keeping. man, it was easy good money when i did it. now if they are using a BPO for the pre foreclosure book keeping. i can't blame them for trying to save more on foreclosures. and it's not for lending purposes, so wouldn't you try to save that cost. just the reality of it's not personal, it's business said don of america.

I just got a reply:



"These are typically ordered internally for account maintenance."

 

[DWiley]

Why the hullabaloo. Lenders have been hiring brokers to do bpos when I started over 30 years ago. Nothing new.

Agreed, When I joined AMCland 15 years ago I was a little surprised to find out that we engaged just as many BPOs as we did appraisals. From my point of view, some of that was self inflicted. We stood our ground and said "we only do 1004s" when the market was looking for something less for certain uses. If appraisers had better embraced the scope of work concept, all those BPOs could easily be being done today as appraisals (by appraisers) with a SOW that was less than the SOW required for a traditional appraisal. Too many appraisers still view a 1004 as the only "real" appraisal.

 

[George Hatch]

Every "evaluation" assignment I've ever done has been been done as a USPAP compliant appraisal. It don't cost nothing.

 

[NC Appraising]

Agreed, When I joined AMCland 15 years ago I was a little surprised to find out that we engaged just as many BPOs as we did appraisals. From my point of view, some of that was self inflicted. We stood our ground and said "we only do 1004s" when the market was looking for something less for certain uses. If appraisers had better embraced the scope of work concept, all those BPOs could easily be being done today as appraisals (by appraisers) with a SOW that was less than the SOW required for a traditional appraisal. Too many appraisers still view a 1004 as the only "real" appraisal.

I agree that is part of it.

The other parts:

1. There are >100,000 agents in North Carolina, and what +-3,000 appraisers (guessing here, not taking the time to look it up.) How can appraisers compete with +-100,000 agents that are willing to do BPOs for $40-$60?

2. If I could just turn the report in and be done, I would do them all day long. In my opinion, AMCs and lenders were still stipping like the order was for a 1004 going to the GSE's. I know some agents that does nothing but BPOs and per them they get stipped to no ends.

3. During the busy times, yes, most appraisers could not work in any BPOs type of assignments. 100k agents, +-3,000 appraisers. Most agents have staff or newbie agents to do the BPOs.

4. Ill add in liability.....what happens to agents when they turn in a bad BPO? Can they be punished by the state? Dont know. Maybe there could be a way to do them without having to worry about USPAP or the state board. If the banks are not worried about USPAP with re agents, why should we be bound to USPAP if the lender allows it?

 

[J Grant]

An appraiser can not do a BPO without it being an appraisal - every time we give a value, it is an appraisal. Another false charge against appraisers was that they were unwilling to do this work - they were unwilling to do it for $50 because they had to back their conclusion and opinion up with credibility and meet standards; the RE agents do not.

Appraisers can do BPOs but not as appraisers; they can get an RE license and do them. Give up the appraisal license or keep it and do the BPB under the real estate agent license and make it clear that is the hat you are wearing. Then you too can do them for $40- $60 bucks and churn out whatever.

 

[gregb]

Appraisers can do BPOs but not as appraisers; they can get an RE license and do them.

What is the source that to complete a BPO one would need a license, of any sort. Just had 3 brokers complete BPO's for an upcoming listing, and it looks like they were all completed and signed by unlicensed assistants to the broker, with no broker signature. Maybe things are different in Florida.

 

[J Grant]

What is the source that to complete a BPO one would need a license, of any sort. Just had 3 brokers complete BPO's for an upcoming listing, and it looks like they were all completed and signed by unlicensed assistants to the broker, with no broker signature. Maybe things are different in Florida.

Idk,- - I assume to do a BPO one needed a RE broker or RE sales license I suppose they could pawn it off on an assistant - its been a long time. over 15 years since I did a grand total of 3 and never did another, one.