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The BPO scourge

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Claude From NY

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Senior Member
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Jan 16, 2002
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Certified Residential Appraiser
State
New York
In line with what Mike K. has brought to light on the main forum, if NY was a mandatory State or could effect legislation similar to that in Arkansas we could eliminate the current BPO BS. I have reason to believe that the vast majority of REO and pre-foreclosure valuations around here are being done using BPOs. Typically by real estate agents that have no intentions of receiving the listing, rather they are looking for supplemental income.

The only call I received last week was from somebody out of area looking to get a BPO on a property in Southampton, they though I was a broker because I'm with MLS.

I'm sorry, I'm not a broker and I don't do BPOs but I will be happy to assist you with an appraisal assignment request. Oh no, I don't want an appraisal, I just want to know what it's worth.............. :huh:
 

KenRossman

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Oct 20, 2004
Professional Status
Certified General Appraiser
State
Florida
I spoke to a woman in W Babylon a few months ago.

When she found out I was an appraiser, she solicited me to do BPOs for her in Nassau, claiming she was working 7 days a week, 10-12 hours a day & couldn't keep up with the demand. She supposedly works for several banks directly, mostly pre-foreclosure work.
 

David Wimpelberg

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Professional Status
Certified General Appraiser
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New York
The only call I received last week was from somebody out of area looking to get a BPO on a property in Southampton, they though I was a broker because I'm with MLS.

They probably contacted you because they can't find anyone out here to do them.:)

The amount of work that's required versus the fee the pay is utterly absurd. The lowest of the low AMCs pay more for a similar amount of work. I would have very serious concerns about about whether the numbers on a BPO have any relationship to reality.

Compare the fee on a BPO to the fee on a commission, and that's all one needs to know about the quality of a BPO.
 

Claude From NY

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Senior Member
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Jan 16, 2002
Professional Status
Certified Residential Appraiser
State
New York
Ken, was that woman from W Babylon a broker or agent? Just curious.

I just have a feeling that they are slapping any three comps onto some online form. I'm seeing more and more solicitations for this crap, even on the AI site where they are looking for appraisers to fill these things out. What financial institution is ordering and relying on this stuff? David, you are probably right, Im sure the numbers on a BPO are a far cry from reality.

I think I know a 10 year old that would like to do these. :) What do they pay? Twenty bucks a pop?
 

David Wimpelberg

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New York
The ones we've seen pay around $50. The amount of work that is required is ridiculous...it's easier to fill out a 1004. Which leads me to believe the people that are doing these are not likely to be doing their due diligence.
 

KenRossman

Senior Member
Joined
Oct 20, 2004
Professional Status
Certified General Appraiser
State
Florida
I think she is a broker but am not positive. I never got into the $$$ at the time cause I had no interest... She was someone I crossed paths with verifying a fsbo listing on a 3rd party ERC assignment.
 

Tony V

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Joined
Mar 29, 2005
Professional Status
Certified Residential Appraiser
State
New York
About 8 months ago I was contacted by IMB through one of the firms I do work for...Seems that they got a BPO on a property on Further Lane..The broker gave the dwelling a $3.5m to $4.5 m value range....Meanwhile IMB was sitting on a $11 m appraisal and on a $6 m loan...This person was shaking..BTW the broker's office, per the BPO, was 40 miles away from the dwelling.

They supplied the fresh appraisal and a copy of the BPO..
Went to the subject, found the BPO had the wrong house in the pix's and from there it just got stupid..

Scourge isn't the word......And I totally agree with Claude...
 

David Wimpelberg

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Professional Status
Certified General Appraiser
State
New York
Seems that they got a BPO on a property on Further Lane

:rof:

BTW the broker's office, per the BPO, was 40 miles away from the dwelling.

:rof:

The brokers dealing with properties on Further Lane are making 6-7 figure commissions...I imagine they're not running around doing BPOs.:)
 
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