BPO Work?

[Summer]

I can't believe that an appraiser doesn't know this.

 

[JoeB]

I can't believe that an appraiser doesn't know this.

I agree!!!

 

[Lee Lansford]

I can't believe that an appraiser doesn't know this.

Well...I suppose that we all have something to learn. That's a part of the reason that we have the AF, professional associations etc.

 

[Lee Lansford]

... I left the meeting feeling confused as the company already employes a large team of appraisers that handle the BPO's who all seem to think it is the best job ever and all well within the guidelines of USPAP...

I'd be curious to learn more (not that I'm interested in completing BPOs) regarding the specifics.

 

[JRS at OBX]

I'd be curious to learn more (not that I'm interested in completing BPOs) regarding the specifics.

Me too. I'd be interested to see a couple of those BPOs.

 

[laurielutton]

Me too. I'd be interested to see a couple of those BPOs.

I had them show me a few of their BPO reports because I had never seen one either and it looks like a mini URAR report. Sales grid looks the same, all data for the subject property looks the same, they require interior inspection ( no measurements ), photo's, 3 sold comps and 3 actives, they allow you to go 6 months back for comps...........I am going to assume that they are all agents as well as appraisers and do the job wearing 2 hats and they must assume that I am the same. When I call them to turn down the job, I will clarify this and try to ask some questions at the same time.

 

[Don Clark]

I had them show me a few of their BPO reports because I had never seen one either and it looks like a mini URAR report. Sales grid looks the same, all data for the subject property looks the same, they require interior inspection ( no measurements ), photo's, 3 sold comps and 3 actives, they allow you to go 6 months back for comps...........I am going to assume that they are all agents as well as appraisers and do the job wearing 2 hats and they must assume that I am the same. When I call them to turn down the job, I will clarify this and try to ask some questions at the same time.

I have seen some of thes so called BPO's and have even had some used against me as a review of my appraisals. One I even posted here on the forum as a 72 page BPO. My client was furious that they would try and use that as a review of my work. It was easy to rebut the BPO.(BPO was 4 pages of the 72 pages, the rest was just bolier plate AVM crap). The agent who did it had been an agent 4 only 4 months. His idea of a comp was anything that sold in the general vicinity. My subject was a ranch of about 1,300 sq ft. built in the 1950's. He used a 2 story that was over 2,000 sq ft and over 90 years old. Another sale was a small cottage less than 800 sq ft that was attached to another dwelling. You get the picture

A house on my street is in foreclosure. I know the property well. The people who sold it to the current owner had lived there about 25 years. It was immaculate when sold. It soon deteriorated. There were at least 8 similar sales in the neighborhood. The AVM on it used sales outside the neighborhood and over 8 miles away in 1 case.

BPO's can be a good tool, for listing purposes. But, for valuation purposes, REO work, etc they are just so much crap. The agents usually give them a high value hoping they will not sell and that they can get the listing after it fails to sell.

This is the thread I was referring to:

http://appraisersforum.com/showthread.php?t=107997&highlight=page

 

[PJK03]

I hold a brokers license, but the agents in my area offer thier BPO's for free. They pick up all the REO listings this way. I haven't written one BPO and I don't think I will start now. Be careful with what you do for these agents, they have no idea what you had to do to become an appraiser, and they do not respect it one bit.

 

[Walter Kirk]

The only legitimate use of a BPO is for Brokers to generate listings. Banks, mortgage companies, etc have been using BPO's as an appraisal substitute. Appraisers performing BPO's are simply undermining the appraisal profession.

 

[Mztk1]

Got a call from a large AMC today offering a BPO 30 miles away for $45. I asked what was the highest they were authorized to go up to and she said they are paid $100 so anything below that.

It has similar criteria. $45 for an REO appraisal is basically what it amounts to. If we start taking those assignments at that price, it won't be long before a regular URAR is $35.

Those appraisers in that room, accepting those assignments, are nuts, newbies, or both.