BPO Rant

[Narkissos]

When are they going to get it? I performed an appraisal on a property in a Historic District of Detroit, analyzed the market to such a point that the report when completed was 49 pages in length with 6 comps not including the listings requested on the REO addendum. I had detailed estimates for all of the recommended repairs, graphs demonstrating market trends, estimated months of inventory...... I got a call about the BPO performed on the same property coming in $80,000 less than my opinion of value two weeks ago. So I have been keeping my eye out for the listing. Well I look the property up and big surprise. The property was listed for $80,000 less than my appraised value, on the market 1 day, sold and is now re-listed by the same agent for $65,000 higher. I contacted the agent to inquire as to the condition of the property. It is in the exact same condition it was 4 weeks ago when I appraised it.

 

[Pamela Crowley (Florida)]

Time to file a major complaint with both the local Realtor's Assoc. AND the State of Michigan against this agent's real estate license.

Send a copy of the new listing to your prior client.

 

[Ray Miller]

Sounds like he flipping it with out owning it.

Way to go, I would also file with NAR and thier local association if members.

Egg suckers, that is all it is bottom feeding egg suckers. I would also call the REO company and let them know they took a hit from this outfit.

 

[Walter Kirk]

Forget about the fishy deal. How can anyone question such a complete and detailed appraisal with a worthless BPO?

 

[Lawrence R.]

If I had a nickel.

For every BPO that had trumped one of my rural appraisals....well...i would only have about 15 cents, but that would be enough to buy a hot cup of coffee to throw in somebody's face!!

I have had it with BPO's CMA's and whatever else anybody wants to call a substitute for an appraisal.

No wonder police officers and security gaurds have such bad blood.

We don't need BPO's we need RPO's.

Real

Price

Opinions.

 

[Mary Tiernan]

Ahhhh - but will it sell at $65,00 higher?

I heard the other day that Detroit used to have 1.3 million residents, now its down to 850,000.

Is this true?

 

[Truett Neathery]

Fake appraisals (appraisers)

For every BPO that had trumped one of my rural appraisals....well...i would only have about 15 cents, but that would be enough to buy a hot cup of coffee to throw in somebody's face!!

I have had it with BPO's CMA's and whatever else anybody wants to call a substitute for an appraisal.

No wonder police officers and security gaurds have such bad blood.

We don't need BPO's we need RPO's.

Real

Price

Opinions.

No, RPGs

TN

 

[Vernon Martin]

I heard the other day that Detroit used to have 1.3 million residents, now its down to 850,000.

Is this true?

Yes, except that its population peaked in 1960 at 1,670,000 residents. Detroit and Cleveland have lost close to 50% of their population in the last 50 years.

The lender that ordered that BPO needs to be notified and educated. How else will these types of things stop?

 

[Narkissos]

Ahhhh - but will it sell at $65,00 higher?

I am very confident in my appraised value. Over 90% of my work for the past 5 years has come from REO appraisals. I have appraised 42 homes in this particular zone. I had one of the brokers I know very well contact the agent to inquire as to the availability of the property. Per the agent she has already received to offers from investors within the past two days. They client requested a 90 day value. I considered all factors; declining market, oversupply, condition, the impact the repairs would have on market value, entrepreneurial profit, the slow down in real estate activity attributed to the Holiday Season, winter months....The properties in this historic zone receive a 35% tax abatement for the next 12 years, there is a private security firm which monitors the area 24 hours / days a week. These properties are still somewhat in demand.

I have forwarded all listings and information to the client. I have also contacted the local board of Realtor's and informed them of my intent to file a complaint with the state.

People are leaving the city in droves. However, investors are buying up entire blocks.

 

[Riick]

Narkissos -- I've virtually specialized in REOs for 10+ years, and I've seen exactly the same thing, and also Brokers hip-pocketing the REO
((MLS shows it's located in a different town, and map grid in listing shows it located in middle of a river))
Then selling to a friend for 1/3 of real market value after 6 months on market.

Problem is that the lender's marketing arm doesn't want to hear that they made a mistake. Luckily, it's not my $$