The article mentions that while there are some lenders who have cash flow problems or an unwritten policy to stiff the brokers for BPO's, one of the main reasons the lenders are giving for brokers not getting paid is because the their work is incomplete. It seems that even the superficial similarities between a BPO and an appraisal (it's on a report form and it has an opinion of price or value) aren't being met by some of the brokers. Lenders are accustomed to receiving valuation reports (appraisals from appraisers) that have been completed and don't have a lot of missing data, missing photos, are done with the agreed-upon degree of inspection, delivered in a timely manner, etc.. Since the brokers aren't specifically trained and accustomed to providing this level of service for a written report, they're having trouble collecting their fees.
To me, it looks like another example of "You get what you pay for".
Hey if you were an agent and could earn $5,000 on a deal and some lame duck asked you to do somethin for $50, that would take a couple of hours to do, where would you put the effort :?:
secondly, agents that are lacky's when doing their "Listing Info" -will never complete a BPO properly. Recently, I've found most do not even meet the minimum requirements for Agent responsibility's and then have the nerve to think your off on value because they think so :?: I just simply ask them for the work up they provided when doing their analysis for "Listing" - when they say I'll have to get that for you, I know they never did anything in the begining. MOst agents today have developed bad work habits and it shows. :x :x
Pam, I went to the REO brokers site mentioned in the article. They charge $1,000 per year, and have no appraisers or brokers in the areas I checked. They must be new, and may be another pay me for nothing URL. I would hope the writer checks out his sources.