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

Posted by


*******

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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Topic:
ActiveRain Community
Location:
California Sacramento County Sacramento Fair Oaks
Groups:
Fair Oaks CA real estate and information
Folsom Real Estate
Elk Grove Real Estate
Citrus Heights Real Estate
El Dorado Hills Real Estate
Tags:
sacramento bpo
sacramento short sales
short sale issues
short sales
broker price opinions
bpo fees

Comments 17 New Comment

Rainmaker
1,319,565
Rebecca Gaujot, Realtor®
Lewisburg WV Real Estate, Greenbrier County
Coldwell Banker Stuart & Watts Real Estate

 

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.

October 20, 2012 07:19 AM
Rainmaker
582,597
Susan Neal
Fair Oaks CA & Sacramento Area Real Estate Broker
RE/MAX Gold, Fair Oaks

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.

October 20, 2012 09:56 AM
Rainmaker
267,457
Kasey & John Boles - Jon Gosche Real Estate
Boise, Meridian, Ada/Canyon/Gem/Boise Counties
Jon Gosche Real Estate, Boise ID

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

October 27, 2012 04:56 PM
Rainmaker
267,457
Kasey & John Boles - Jon Gosche Real Estate
Boise, Meridian, Ada/Canyon/Gem/Boise Counties
Jon Gosche Real Estate, Boise ID

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

October 27, 2012 04:58 PM
Rainmaker
572,069
DeeDee Riley
Realtor - El Dorado Hills & the Surrounding Areas
Lyon Real Estate - El Dorado Hills CA

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

 

November 18, 2012 03:06 PM
Rainmaker
582,597

Susan Neal

Fair Oaks CA & Sacramento Area Real Estate Broker
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