BPO's and LSI

[SLP-NYCT]

I had been trying to get on a vendor list to provide BPO's and possible get some foreclosure listings especially now since NAR is trying to get this listing source opened up to more offices that are local. Out here we will have a listing office in another city or even state list some of these homes. We eve have one company who does nothing more than to have a lock smith through a new lock on with a lock box. The entire listing is inaccurate and will only have one photo. The lock box combo is actually in the listing. You just go. Not too bad a racked huh?

Well I hooked up with a company called LSI. They were the first to offer me some BPO work. $40 for exterior and $70 for interior. What they really wanted was a Full Appraisal including line item adjustments on every comp and estimated repair costs for every repair the home needed.

Now maybe it was just me, but I tried the first two.
Travel time: 2 hours (1 hour each way)
Comp Search: 1 hour
Data Entry: 1 hour
and I did not include the repair costs or adjustments.

So thats a whopping $10 per hour and it still needed more work to be accepted. It is my opinion that Appraisers make adjustments and Brokers / Agents do not. Otherwise the line between an Appraiser and Broker are blurred to which they are not, according to state licensing law.

So I was wondering. Are all BPO companies like this? The few other agents who have done a few of these in the past we paid far more for a simple 3 Sold 3 listed comp CMA.

[satxproperty]

Isn't part of the lure for doing BPO's is that maybe they'll give you the listing?

[Lflow1821]

I have been doing BPOs for over a year and still have not recieved a listing..... Can anyone tell us what BPO companies are actually assigning listings so we dont waste out time?

[SLP-NYCT]

LSI and most other BPO companies are third party providers. They do not have any control over who gets the listings. NAR is actually working on opening that up because the companies that do place the listings; Asset Service companies, have had their doors locked for years. Many listings are currently placed with companies no where near close to being local. We even have a company in NJ listing Foreclosure homes in NY. Another is 3 hours North in Albany.

It is typical for one company to do the BPO and another to list it. This way you are not doing the BPO so you get the listings (buying a listing with a high BPO price)

[svrpaul]

$10 an hour? Sounds like a good gig in comparison to what I've been getting paid with all of the short sales I have in escrow.

[satxproperty]

LSI and most other BPO companies are third party providers. They do not have any control over who gets the listings. NAR is actually working on opening that up because the companies that do place the listings; Asset Service companies, have had their doors locked for years. Many listings are currently placed with companies no where near close to being local. We even have a company in NJ listing Foreclosure homes in NY. Another is 3 hours North in Albany.

It is typical for one company to do the BPO and another to list it. This way you are not doing the BPO so you get the listings (buying a listing with a high BPO price)

I used to do this for an outfit in Colorado Springs and got listings from them... Aurora Loan Services. You are right though, I wouldn't get the listing for the property that I did the BPO for though.

BTW, what influence or business does NAR have to open up foreclosure listings to other real estate companies?

[svrpaul]

BTW, what influence or business does NAR have to open up foreclosure listings to other real estate companies?

I was thinking the same thing...

[SLP-NYCT]

NAR petitioned FannieMae and FreddiMac to open up the network of companies they are sending the listings too.

[svrpaul]

Interesting... I know somebody handling 75 HUD homes right now that is extremely detail orientated when it comes to paperwork... but the marketing skills will not get the highest price possible in the shortest amount of time.

Something I see left and right when it comes to agents that are listing REO homes.

And that's the funny thing when it comes to REO homes... the Asset managers are searching the wrong place to find the agents that are going to get them top dollar.

I don't think you could find ONE REO listing agent in the top 100 for the most searched phrase for real estate in our market when it comes to Las Vegas.

I can go on and on but I'll stop here..

[satxproperty]

The HUD listing brokers doesn't have alot of incentive to market the properties (less than 1%). However, hundreds of other local agents advertise the HUD listings too.

An appraiser sets the price. Vendors maintain and periodically inspect the property. Negotiations bypass the listing broker and are handled by another contractor, the asset manager.

MLS and a sign in the yard... not bad, if you can get it. (In all fairness, they may have more responsibility that I am not aware of.)