What is a good BPO worth in the Sacramento area?

By
Real Estate Agent with RE/MAX Gold, Fair Oaks


What is a good BPO worth in the Sacramento area?


Leila Mortaz wrote an interesting post explaining why she would not accept a $20 BPO (Broker Price Opinion), and saying that she thought it was worth $60-75 to do a proper BPO.

I agree with her, and have turned down BPO assignments from banks offering $20-25 but requiring tons of information that should be accurately gathered only by touring the property and researching the comps.  I simply can't justify spending my time to do that amount of work for less than minimum wage (plus the expense of gas). Banks imply that if you do a great BPO at a cheap price you will start gettingWhat is a good BPO worth? their listings, but that seldom happens.

If the banks are serious about determining the market value of a property, they need to pay a pro to do a pro job, instead of simply making "I'll call you maybe" promises.

The $20 BPOs contribute to the short sale disputes with lenders.  Not all inexpensive BPO agents are lazy or sloppy of course, but a conscientious agent cannot possibly make any money at that price, and they take it as a "loss leader".  And the bank has to assume that the BPO agent has followed its instructions.

I know for a fact, however, that some agents never even visit the property - they just look at the MLS, and use those photos and descriptions, and some banks even ask for a "drive-by" BPO.  I challenged one BPO on a short sale I was negotiating, and got nowhere, with the negotiator insisting that the agent had toured the house and also toured the homes she used as comparables. 

That wasn't possible because I had taken the key out of the lockbox so she would have to call me for access, and that didn't happen.  And a drive-by would not show the $250,000 in remodels and upgrades that had been done to one of the comps that she used, which had not been done to my listing. That comp was relied on by the bank in demanding an outrageous price.  I know because I finally spoke with the agent who had done the BPO and she had included it with no commentary about the difference in condition.What is a good BPO worth?

The buyer finally paid for an FHA appraisal, and after more jousting we got approval.  The BPO agent was mad at me because she said she was doing BPOs at a loss in the hopes that she could get the listings, and she shouldn't be expected to do much for $20, and now she probably wouldn't get any listings from that bank. 

Sorry - but my concern was for my client, and if she didn't think $20 was enough to be as thorough as was requested (I sure don't), she should have simply refused to do the BPO, as Leila says in her post that she would do.

 
What do you think?        


***

Thinking of selling your home?  Remember it costs you nothing for me to come out and discuss your home, the market in your area, and give you a market analysis and presentation so that you will know what you can expect to get for your home.

Call for appointment:  (916) 705-8951


Also Remember,
I can help you to tour any home for sale in Sacramento County and the surrounding areas, no matter what firm has it listed, and I can help you with your purchase if you find the perfect home for you.


Just give me a call at (916) 705-8951

***********

Susan Neal
Broker / Realtor

Susan Neal Fine Properties
Century 21 Noel David Realty
Fair Oaks, California

Full time real estate services in Fair Oaks CA, with friendly professionalism, 30+ years experience. 
I work hard to give my buyer or seller a low-stress transaction.

"Happy clients make me happy."

For all your real estate needs or questions, call me at (916)705-8951 or visit my website at www.SusanNealFineProperties.com.    

HUD homes resource             Search HUD Homes

Check out my business page on facebook:  Susan Neal Fine Properties

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*******

Thinking of selling your home?  Remember, it costs you nothing for me to come out and discuss your home, the market in your area, and give you a market analysis and presentation so that you will know what you can expect to get for your home.

Call for appointment:  (916) 705-8951


Also Remember, if you are planning to buy a home, I can help you to tour any home for sale in Sacramento County and the surrounding areas, no matter what firm has it listed, and I can help you with your purchase if you find the perfect home for you.

Just give me a call at (916) 705-8951

***********
Susan Neal
Broker / Realtor

Susan Neal Fine Properties
RE/MAX Gold
Fair Oaks, California

Full time real estate services in Fair Oaks CA, with friendly professionalism, 30+ years experience. 
I work hard to give my buyer or seller a low-stress transaction.

"Happy clients make me happy."

For all your real estate needs or questions, call me at (916)705-8951 or visitmy website at www.SusanNealFineProperties.com.    

HUD homes resource            Search HUD Homes

Check out my business page on facebook:  Susan Neal Fine Properties

 

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Show All Comments
Rainmaker
889,749
Jane Peters
Power Brokers Int'l - Los Angeles, CA
Connecting you to the L.A. real estate scene

You are absolutely right.  The drive-by BPO is as good as me sitting here and doing the comps on the computer.  Absolutely pointless.  And many of these agents don't even know the market.  It should be done by a professional for sure.

Oct 19, 2012 05:54 PM #1
Rainmaker
171,041
Dale Samples
304.741.4705 • www.dalesamples.com - Charleston, WV
REALTOR -Homes for Sale Charleston, West Virgini
$20 is just plain silly. In WV we aren't allowed to accept payment for a BPO. If we were, it would have to be enough to justify me driving out in the middle of no where to locate some crazy house.
Oct 19, 2012 07:04 PM #2
Rainmaker
385,405
Laura Filip
RE/MAX UTOPIA WHITESBORO,SHERMAN,DENISON TX,TEXOMA - Whitesboro, TX
THE SIGN OF SOLD STARTS HERE. CALL US TODAY

Good evening to you I think that we are worth way more and should take the price increase in general for all things. Ask for what you feel you are worth. Twenty dollars does not pay for the fuel we use then our time top it off. Well no thank you.. have a blessed day

Oct 19, 2012 07:12 PM #3
Ambassador
1,328,894
Richard Iarossi
Coldwell Banker Residential Brokerage - Crofton, MD
Crofton MD Real Estate, Annapolis MD Real Estate

I don't understand how any agent can justify accepting $20 for that much work. That urban myth about getting listings is just that...a myth.

Oct 19, 2012 07:44 PM #4
Rainmaker
582,897
Susan Neal
RE/MAX Gold, Fair Oaks - Fair Oaks, CA
Fair Oaks CA & Sacramento Area Real Estate Broker

Thanks for your comments.  I know some agents will do them at that price, so I guess the banks see no reason why they should pay more.  I think it is one of those cases where you get what you pay for much of the time.

Oct 19, 2012 08:17 PM #5
Rainer
185,944
Gary Meek
NewVision Realty Group - Roseville, CA
Broker/Owner (916) 995-9385

I have done over 2000 BPO's including some for free.  It all depends on who you are doing them for and what their forms are like also.  There are a few companies I will not do any more as I do not like their forms.  THere are others I can do in 20 minutes.  I tell all of the agent in teh BPO classes I teach, that there are two reasons to do BPO's.  One is to learn the market place and understand what is going on in their area.  The other is to make a living.  I have one agent who gets paid about 50-70 per BPO and makes more money doing BPO's then he did in construction. 

Oct 19, 2012 08:33 PM #6
Rainmaker
557,518
Wayne Johnson
Coldwell Banker D'Ann Harper REALTORS® - San Antonio, TX
San Antonio REALTOR, San Antonio Homes For Sale

Susan, I believe the principal "you get what you pay for, or you don't get what you don't pay for." I cannot justify doing a BPO for $20-$30.

Oct 19, 2012 09:45 PM #7
Ambassador
956,274
Amanda and Jared Christiansen, YOUR Fort Wayne Realtors
Century 21 Bradley (260)704-0843 - Fort Wayne, IN
Century 21 Bradley.

I think two things.  1.  $20 for any type of BPO is absurd and insulting.  2.  A drive by BPO is useless.  My two cents.                         

Oct 20, 2012 04:10 AM #8
Rainmaker
558,942
Scott Fogleman
Witt-Fogleman Team 434-941-8847 - Forest, VA
Witt-Fogleman, Inc. - Bedford, Lynchburg, and Roan

Susan- No way would I do a $20 bpo. I dont go for empty promsses....

Oct 20, 2012 04:11 AM #9
Rainer
3,928
George H. Farmer
Natural Properties - Anderson, SC

I have done thousands of BPO but will not do any under $50.

Oct 20, 2012 04:58 AM #10
Rainmaker
221,652
Brien Berard
Remax Professionals Laurel MD - Laurel, MD
Maryland Real Estate Agents - Laurel Real Estate

Six years into the this fall and banks still have no idea how to handle short sales!  $20 for a BPO?  What  a joke!  Hey Gary, the reason you have done so many BPOs is because no one else will do them. 

Oct 20, 2012 04:59 AM #11
Rainmaker
892,863
Michael Setunsky
Michael's Commercial LLC - Woodbridge, VA
Your Commercial Real Estate Link to Northern VA

Susan, a poorly completed BPO is a disservice to everyone involved. If you can't do them correctly and complete, then they shouldn't be done at any price. They are called a Brokers Price Opinion for a reason.

Oct 20, 2012 06:13 AM #12
Rainmaker
1,401,599
Rebecca Gaujot, Realtor®
Coldwell Banker Stuart & Watts Real Estate - Lewisburg, WV
Lewisburg WV Real Estate, Greenbrier County

 

Susan, I don't do BPO's as they are not worth my time and like you cannot justify accepting $20 for my time in preparing one.

Oct 20, 2012 07:19 AM #13
Rainmaker
582,897
Susan Neal
RE/MAX Gold, Fair Oaks - Fair Oaks, CA
Fair Oaks CA & Sacramento Area Real Estate Broker

Thanks for all your comments.  A couple of years ago I registered with a few companies that assign BPOs and I would get emails in the early morning whenever there was an available one in my market area.  I was amazed how many of them offered only $20 or $25 and required all kinds of supporting documentation and photos. Some of the $20 ones specified "drive-by only" but since I was working short sales, I knew how much of a mess that caused in negotiations and I didn't want to be a part of those.

Oct 20, 2012 09:56 AM #14
Rainmaker
278,474
Kasey & John Boles - Jon Gosche Real Estate
Jon Gosche Real Estate, Boise ID - Boise, ID
Boise, Meridian, Ada/Canyon/Gem/Boise Counties

Holy cow, $20???  My husband won't do BPO's for less than $75-$80.  Not worth it.  In fact, he recently decided to do one for $50 because the house was close to us.  The bank sent it back to him about 4 times asking him to make adjustments to it.  He asked them why they hired him to do a price opinion if they thought they knew the worth of the house?  Things they told him to do were totally not common or reasonable for the market.  He made their changes and made sure in detail on the BPO to state that the adjustments were against his best judgement, were not what he thought was right for the house and also noted his true thoughts because he didn't want to put his name on it with their adjustments without clarifying.  But, anyway, point is, the $50 ended not being worth it, so he won't take those again....Kasey

Oct 27, 2012 04:56 PM #15
Rainmaker
278,474
Kasey & John Boles - Jon Gosche Real Estate
Jon Gosche Real Estate, Boise ID - Boise, ID
Boise, Meridian, Ada/Canyon/Gem/Boise Counties

P.S. You are absolutely right that you had no obligation to that agent and her wanting to get listings, you did the right thing by your client which is absolutely your job.  Nice work. -Kasey

Oct 27, 2012 04:58 PM #16
Rainmaker
579,028
DeeDee Riley
Lyon Real Estate - El Dorado Hills CA - El Dorado Hills, CA
Realtor - El Dorado Hills & the Surrounding Areas

Susan,

I'm with you on this.  I did on for $40 and that was the last and only BPO I did.  For the time it took me, I would not even consider doing it again unless it was $75-100.  I spent hours working on it!  Hope all is well with you as I haven't seen any of your great posts in a while!

Happy Thanksgiving!

DeeDee

 

Nov 18, 2012 03:06 PM #17
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Rainmaker
582,897

Susan Neal

Fair Oaks CA & Sacramento Area Real Estate Broker
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