BPOs: Banks No Longer Using Agents? | How To Do BPOs | BPO Training

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Education & Training with Tim & Julie Harris® Real Estate Coaching

Source: Harris Real Estate University

Agent BPO Panic….

“…..banks are no longer using agents for BPOs…now, they will only use appraisers!”

Response from Coach Julie Harris:

There’s been a lot of discussion and many emails which we have received that start out something like this:

“Hey, did you hear that there’s not going to be any more BPO work out there? Yep, the banks are all going to use Appraisers instead of BPO Agents now.”

So is there any truth to this myth? This rumor? This urban Realtor Legend?

First, let’s take a look at the facts.

The rumor began with one letter, from one company, Landsafe, who said the following:

“LandSafe Appraisal Services, Inc. (LandSafe) is, among other things, a provider of Broker Price Opinions (BPO’s) for Bank of America, N. A. (including its subsidiaries and/or affiliates), and an industry leader in providing nationwide valuation products and services.

LandSafe, from time to time, reviews and analyzes real estate collateral valuation programs, including the use of written evaluation products such as BPO’s, that are used to support real estate financial transactions. Based on risk management principles and control measures for appraisal and evaluation programs, it has been decided that, for certain jurisdictions, BPO’s in lieu of appraisals will not be acceptable.”

Agents: Are you ready to learn how to make money NOW from BPOs? Watch the FREE REO/ BPO Training Video and Download the FREE BPO Training System.

In other words, in certain areas of the country, in certain situations (real estate financial transactions, ie: purchases / re-fi’s, etc.), they will choose to use Appraisers instead of BPO agents.

Remember the following:
* This is from one company, Landsafe.

* They’re referring to certain circumstances in certain jurisdictions. BPOs are ordered for many diverse reasons, including short sales, loan mods, divorce settlements, insurance reasons, tax write-off’s, etc.

I asked all of our top producing BPO agents about this and they were absolutely, 100% un-effected by it.

Their reaction was typical of our top producers:

“Well, if the only BPO business you had was Landsafe, and you live in a jurisdiction that’s effected, then maybe you should be concerned. As long as you’re diversified, it shouldn’t matter.”

The smart agent has multiple sources of BPO business just like they have multiple REO sources. Being dependent on any one company puts you at risk.

Harris Real Estate University Student Kim Minehart made the point that just last April she started with Service Link and now that company has become her largest source of BPO business. Kim typically makes $9000 to $11,000 PER MONTH just from BPOs.

Agents: Are you ready to learn how to make money NOW from BPOs? Watch the FREE REO/ BPO Training Video and Download the FREE BPO Training System.

Jennifer Doak, who also reports makes $9000+ PER MONTH from her BPO business, makes a good point…

“Landsafe isn’t the only company who orders BPOs for Bank of America. Clear Capital and LSI both order BPOs for Bank of America and they’ve sent no such letter out”.

Bottom line?

If all you’re doing is handling one company’s BPO orders, you should be concerned (whether it’s Landsafe or not!) Multiple relationships is the key to consistent income. There are hundreds of companies with BPO orders so there’s absolutely no reason to worry about it drying up.

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  Tim and Julie Harris® Real Estate Coaching  
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Rainmaker
162,126
Lorinda Ward
Keffer Realty - Norfolk, VA
Serving, Hampton Roads Virginia. Norfolk, Chesapeake, Va Beach

Great post, and this is why I love Activerain for all of the information that we learn from each other.

Mar 05, 2011 03:19 PM #1
Rainmaker
436,784
Marcy Moyer
Keller Williams Realty Palo Alto Probate & Trust Specialist - Palo Alto, CA
CDPE

I have incredible respect for agents who are primarily BPO agents. It is a lot of work and you need great organizational skills to do enough of them to make a living doing it.

Mar 13, 2011 07:37 PM #2
Rainmaker
46,809
Donald Stirnweis
RE/Max Beyond - Kings Park, NY
Realtor Kings Park NY, Homes for Sale, Certified Appraiser

I have only done 2 BPO's because I find they take way to much time to do for a $50.00 fee.  Can you recommend any companies that pay a reasonable fee in the New York, Long Island region for BPO evaluations?

May 16, 2011 05:56 PM #3
Rainmaker
396,078
Cameron Novak
The Homefinding Center - Corona, CA
Featured Corona Real Estate Agent Team

LandSafe BLOWS.  They not only have changed input to InspectionPort (which is HORRIBLE... they should hire a high school graduate to code their input forms), but now require hours more work coupled with a 10% pay decrease.

Additionally, they utilize copyrighted MLS photos in violation of law on a daily basis.  Sooner or later they'll be staring at a class action law suit from all the agents and MLSs they have harmed.

Jul 03, 2011 04:58 AM #4
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Rainmaker
152,791

Tim and Julie Harris

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