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Michael Dacko, Real Estate Pro in Brooklyn, NY

Agents: How much do you charge for your exterior/interior BPOs?

Asked by Michael Dacko, Brooklyn, NY Tue Feb 26, 2013

Some of these BPO companies vary on price quite a bit and I wanted to see what you guys are charging for your reports.

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Answers

30
Charge? I wish I had the option to charge. BPO companies have a set fee for BPOs, the standard is $50 for exterior orders and $75 for interior orders. There are companies that have lowered their fees in recent years due to the overwhelming number of competing agents. Newer companies offer lower fees as well. Higher fees are paid on rural areas.

Regarding comments made on this blog earlier: agents that do BPOs not doing a halfway decent job or they are so broke they are grasping at straws, I would have to disagree to that, I have been doing BPOs since 2007 and none of your comments apply.

BPOs I have completed in the past have lead to REO listings, outstanding business relationships from both Buyers and Sellers, I have built a very strong portfolio of investors that currently purchase other than REO properties, have increased my exposure and reputation and have brought "food" to the table of my one licensed and 2 unlicensed assistants, in addition to business opportunities for other contractors.
9 votes Thank Flag Link Wed Feb 27, 2013
Sir, I really don't understand why do you insist in judging my line of work and the line or work of many others.

If there is something nobody has taken the time to blog in this website (I have not read about it) is agents being disrespectful to other agents. Should I now give you the response you deserve?

Instead:

FYI, my performance is currently rated A+ with every BPO company I have worked: AVM, Bankers Asset, Clear Capital, Core Logic, eMortgage, Equi-trax, Equity Pointe, Evalonline, FAS Inc, IAS, iMortgage, Mainstreet, Mark2Market, Ocwen, PCV, Safeguard, Single Source, SLS, USRES, UTLS, VSS20, Walnut Ridge and many more.

The quality and accuracy I have presented Lenders on BPOs I have completed in the past have lead to to dozens of REO listings, those Lenders include: Bank of America, Citi, Chase, US Bank. Wilshire, Kondaur Capital, Baywiew Financial and others.

Absolutely every single one of my REO listings have been directly related to the completion of BPOs, so there you go Sir, you have now heard of SOMEONE that is getting listings as a result of doing BPOs.
5 votes Thank Flag Link Sat Mar 2, 2013
Yanoska Diaz said, "In today's market you can spend an average of 48 working hours with a Buyer and have absolutely nothing at the end of the 48 hours. In 48 hours I can turn around 60 exterior BPOs and get a check in the mail 15 days later for $3,000.00."

You are using the time period "48 hours” for your example so it is natural to assume you mean 2 days of work (2 x 24 hours = 48 hours) and not 48 actual labor hours. People use 24, 48 and 72 hours to mean 1, 2 or 3 days.

Another reason to assume you mean 2 days is because no Realtor shows a buyer homes for 48 labor or showing hours unless the Realtor is trying to get entered into the Guinness Book of World Records for the most ineffective Realtor on the planet.

When I show houses it is usually for 2 - 4 hours at a time. So 48 hours of showing homes would mean 12 to 24 days of showings lasting 2 to 4 hours each. I doubt this is what you mean. I think what you're saying is that you did 60 BPO's in 2 days. Am I right?

If so then you're basically a superhero.

Let's break this down.

48 hours = 2 days

Let's assume you work 8 hours per day doing BPO's. That equates to 16 hours of actual work in a 48-hour period of time.

16 hours = 960 minutes

960 minutes / 60 BPO's = 1 BPO completed every 16 minutes.

It takes more than 16 minutes just to drive to each of the BPO's.

The BPO's I did took me about 3 hours each. Granted, I'm a mere mortal. But I have a hard time believing you did your BPO's at an average rate of 1 per 16 minutes.

Where have I gone wrong with my math?
4 votes Thank Flag Link Fri Jan 10, 2014
Relax, realtors often exaggerate numbers and get caught. That is why realtors in general got a reputation.
Flag Thu May 29, 2014
it takes me about 2 hours to complete not including the pictures of the subject!
Flag Thu Apr 17, 2014
Wildey, Raybould, the following was my first or second response to this thread, it stayed at the bottom of the page and therefore it seems no one had the time to scroll down there:
"You cannot do BPOs if you are a one man show, you need assistance typing, downloading and uploading photos, etc. It is very hard work, I work very long hours and so does everyone here in the office, I have listings and Buyers to attend to as well."
I am not doing the number of BPO I/we did in the past (for many years) but I can guarantee you it can be done if properly organized with a mini-team of mini-superheroes :)
Flag Thu Apr 17, 2014
Chris,
She said "working" hours so I am assuming she does not mean 48 contiguous hours. However, even that is not practical: 60 BPOs done in 48 working hours would mean a BPO done every 48 minutes. Which is ridiculous. For most of the BPOs I have done, 48 minutes would only be enough time to drive out, take the pictures, and MAYBE drive back.

Besides, anyone who is doing 60 BPOs every 1.2 weeks (assuming a 40 hour work week) is probably ONLY doing BPOs. I highly doubt they are listing properties or working with buyers. But that's fine, at least it pays the bills!
Flag Mon Feb 17, 2014
I find it takes between 2-3 hours to do a BPO, which includes all driving and form work done to a reasonable standard. Assuming you get a fee of between $60-$80, you are working for between $20-$40 per hour. Its good for part time work, or as a supplement to regular real estate activity.
Flag Tue Jan 14, 2014
and your point is? I am sure everyone else reading your response will find it quite helpful. My mathematics is correct, your reading is not, if you take the same time to read all of my response as well as you took the time to trash my answer your will find out how.
Flag Fri Jan 10, 2014
BPO's are a big waste of time as they don't result in listings. They actually try and pay as little as $50. Any agent who would work for this little is either not doing a halfway decent job or they are so broke they are grasping at straws. Depending on the BPO it should be a minimum of $150 for a really easy one (which there really is not such thing).
Don
3 votes Thank Flag Link Tue Feb 26, 2013
Wow. BPO's have been very lucrative for me in my business, not only financially, but professionally. They've introduced me to many different avenues including REO listings and being able to have a "foot in the door" for a potential buyer who may be looking for this upcoming property. They certainly aren't a waste of time and you are incorrect about them not leading to listings. And I take insult with your comment about an agent "doing a halfway decent job" or "so broke they are grasping at straws". Really?? I'm sorry you feel BPO's are beneath you, maybe you just didn't find a way to take advantage of what they really offer.
Flag Thu May 29, 2014
Not sure if you get more bang for you buck, but i have completed 50 BPO's this month and pocketed $2500.00. So the way I look at it, if I am not closing 2 or three deals a month. $2500.00 is good pocket change. I only get 40. per BPO and 65 for CMA
Flag Fri Mar 28, 2014
Not sure if you get more bang for you buck, but i have completed 50 BPO's this month and pocketed $2500.00. So the way I look at it, if I am not closing 2 or three deals a month. $2500.00 is good pocket change. I only get 40. per BPO and 65 for CMA
Flag Fri Mar 28, 2014
Sorry Yanoska, but if you can do 60 exterior BPOs in 48 hours that you can't possibly be doing a good job! Do you actually visit the property and take a photo of the house and a photo of the street scene? Do you actually make notes about the house while you are there? Do you go to the town or city hall to verify what is legally there as compared to what you saw. Do you then actually take the time to find accurate comparable properties and than fill out the somewhat detailed BPO form? You say you do 60 in 48 hours which comes out to one every 48 minutes. You CAN'T do this well in 48 minutes. If you do it in 48 minutes it is poor quality like I posted earlier. Please don't tell me that you can do it because you have assistants. I started doing BPO's in 1994 and never heard of ANYONE EVER getting a listing as a result of doing a BPO. Yes, some agents are given a listing and told they need a BPO, but this is NOT the same. This is when it's bank or corporate owned, you have a relationship with them and it's more of a formality to do a BPO. Other than that, BPO's do not lead to listings. Again, you can't do a good BPO in 48 minutes. PERIOD! They are ab big waste of time and belittle the value of an agent.

Don
2 votes Thank Flag Link Sat Mar 2, 2013
Donald,
While I share your incredulity about Yanoska being able to compete 60 BPOs in 48 hours, your other comments are off base entirely.
You state that you "started" doing BPOs in 1994, and I suspect that 1994 was also the last time you did a BPO. Things have changed considerably since then.
I have NEVER gone to City Hall to investigate a property that I am doing a BPO for. Ever. EVER. EVER, EVER, EVER, EVER, EVER, EVER. And no BPO company expects me to do that. Unless I am getting the listing, then that is a different matter, because then I will have to input the property characteristics into the MLS, and all parties involved prefer the information be accurate.

You are also wrong about not getting listings from doing BPOs. This absolutely DOES happen. One must be aware of who is requesting the BPO, for example, BPO mills like Core Logic, iMortgage, and Pro Tek will never result in REO listings, whereas companies like Goodman Dean, and Clear Capitol WILL.
Flag Mon Feb 17, 2014
I've definitely noticed a significant price drop with some of the BPO companies, ($35 for exterior) with rental addendum! Having done BPOs for 10 years, I think more and more agents are willing to do them for almost nothing, so the companies that are getting the most orders now are dropping the price.

We set the market, we set the value. As with anything else, it's a matter of what we're willing to make and spend.

I think the same applies to all of our other fees and costs. If agents never make a stand or demand more, we will continue to get sliced and diced from all parties involved with our business. This includes prices for leads, fees, etc. Once they have us by the belt, they can raise prices, cut amounts and do pretty much anything they want because at the end of the day, we're telling them we're okay with it...
1 vote Thank Flag Link Tue Jan 14, 2014
I agree. Part of the problem is sales/marketing departments of the companies assigning the BPOs. I get the impression that there are a lot of companies competing for contacts and in their desperation to get them, they are being competitive to the point of insanity and then expecting the agents that do the field work to work for minimum wage.

I have spoken with a fellow agent at my office and we agree that if the fee is too low, then it is necessary to reject order, and more fool the agent that agrees to do it. In the rural area where I live, I get the sense that there aren't many other agents doing BPOs, so I am able to conditionally accept orders, raising my fee from the insulting $40 to $60 and up.

I get the sense that this new model of trying to get agents to do orders for $40 was dreamt up by someone in a big city, who hasn't factored in the different challenge of completing BPOs in rural areas. Even in a city though, I don't see who would agree to do a BPO for $40.
Flag Tue Jan 14, 2014
When the real estate market imploded and nobody was buying or seller I did a few dozen BPO's. What a tremendous waste of time and energy they proved to be. I could find more money with a metal detector in my backyard.

Do the math. It is quite simple. Look at how much money you can make doing BPO's vs. traditional real estate and the answer is pretty clear. As several agents have said the only people doing BPO's these days are the agents that are failing in traditional real estate.

Ouch. Sorry for speaking the truth and offending those of you that still do BPO's, but you need to run the numbers and reevaluate where you're putting your time, energy and gas money. BPO's make no sense at all UNLESS you're one of the few Realtors that actually get REO listings out of those BPO's. But even then you could probably get REO listings without the BPO"s once you have an established relationship with the right people.
1 vote Thank Flag Link Fri Jan 10, 2014
I'm still fascinated by 60 exterior BPO in 48 hours at $50 a piece. Crunch those per hour numbers and more than a few questions pop up. It's the 10 llb ham in a two pound box problem.
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BPO's in my observation, offer the agent greater value when leveraged through an educational message to the community. Then you get REAL listings from owners who SEE your value. If however you bandwidth is consumed on $50 tricks, you may not be able to serve a homeowner very well.
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Let the BPO action create the ripple you can harvest later. The BPO is NOT the ripple.

Best of success,
Annette Lawrence, Broker/Associate
Remax Realtec Group
Palm Harbor, FL
727.420.4041
http://FIrstLookHomes.us.
1 vote Thank Flag Link Thu Jan 9, 2014
I've been offered as little as $25 for an exterior. I told them $125 and they ended up giving me just that. Still wasn't worth it...too much work for too little money. They've been calling heavy this week (I guess they're back at work after the holiday?) and I have been telling them $150. I guess there are still people willing to do it for less because they have been taking my bid only when they need it quickly. As has been said before...I would whip one up quickly if a home-buying customer asked, and often get nothing in return, so I guess $125 is better than nothing, but not by much!
1 vote Thank Flag Link Wed Jan 8, 2014
There is a trend at the moment for BPO companies to send out orders with low ball fees. I keep getting requests to complete exterior orders for $40, and I live in a rural area which requires significant travel to properties. I won't typically do an order for anything less than $50, and for new companies with an untested payment record or a longer payment schedule, (like 1.5-2 months), I ask for $60. Ultimately though, what you agree to charge will be based upon your own belief in what your time is worth, and what sort of volume you want to receive. Obviously the more competitive you are with your fee, the more orders you'll probably get. Having said that, I am drawing a line in the sand with some companies, who are sending these insulting $40 orders. Note to companies: "I don't work for minimum wage".
1 vote Thank Flag Link Wed Jan 8, 2014
What I'm gathering is that you either do 10 BPOs a day and make it your ONLY thing to do then it can be rewarding. That is really my main concern here. I still have listings to deal with as well as be an active investor buying my own properties so doing 1 or 2 BPOs a week is really a waste of time for me based on the feedback I'm reading from you guys.
1 vote Thank Flag Link Thu Feb 28, 2013
Thank you for the feedback. I have to agree with you that some of these companies are paying peanuts to get these assignments done. The suggested interior BPO price (that was claimed to be what the average agent was paid in MY zip code which I found shocking) was $66 for an interior and the exterior was $48. Either they are lying to me or there are some agents out there that are working waaaaay too hard for a few bucks.
1 vote Thank Flag Link Tue Feb 26, 2013
Don is incredibly correct. This is quicksand that will be incredibly hard from which to extract yourself..
Don suggests, but does not make clear that the 'opportunity cost' of wasting this time rather than investing in/on your business will have a constricting influence of the resources available for your real business growth opportunities. The time, energy, effort and resources wasted chasing a 'bidded' BPO would be much better spent developing your 'story' then doing the grip & grin.

Wearing a name badge with "My name is Michael' will prove more profitable.

Agents in my area charge $40 for Exterior and $125 for interior.(this is actually what the BPO company offers, in some cases these companies allow the lowest bidder to get the BPO work. However, they have to fight and fight and fight to get paid 3 months later and often 6 months later.

When you add up the time and resources involved, that $125 shrinks to a penitence for the work of a professional.
1 vote Thank Flag Link Tue Feb 26, 2013
It gets fairly low as many players are around to undercut others.
0 votes Thank Flag Link Wed Jun 4, 2014
70.00 to 125.00 depending the mileage
0 votes Thank Flag Link Wed Jun 4, 2014
These days the margin for valuation companies is razor thin. Most lenders only wish to pay minimal and lure some brokers to do it for free by promising a listing.

In rural neighborhoods one might be able to haggle asking for more gas money. Lately(2014 summer) there are very few orders as short sale, refin and heloc is coming to a crawl. The policy of asking for more is subject to management desecration and their directive is to assign to another agent.

Sam Shueh
Keller Williams Realty
San Jose, CA
0 votes Thank Flag Link Thu May 29, 2014
Hello,
We provide BPO ordre capture service for all BPO and REO companies. We have very good success ratio and can provide free trial. You can pay for accepted orders only, no additional costs.
So, what are you waiting for? lets get rolling today, Please send me an email on bpoorderaccept@gmail.com
Thanks.
http://bpoorderaccept.blogspot.in
0 votes Thank Flag Link Fri May 16, 2014
The question is: How much do you charge for a BPO? Now, will it be safe to say $3,000.00, $20,000? If you have managed to determine which are the companies that will produce a listing every or almost every time you complete a BPO, then, there is the harvest.
0 votes Thank Flag Link Fri Apr 18, 2014
It is not true that you cannot negotiate a higher fee than what the BPO companies offer out. Some companies like Core Logic (FARVV) enroll you in their "auto assign" program which does take away your ability to negotiate a fair fee. (which is one of the reasons I do not do any work for Core Logic anymore.) But most BPO companies allow you to negotiate. For a drive-by that is within 5-15 minutes of my office I will generally do it for between 60-90. For ones that are located further away (generally I wont travel beyond 45 minutes) I will do it for 100-150. Occasionally I will do commercial BPOs and charge between 175-200. To me it generally doesn't matter whether it is a drive-by or an interior as they are basically the same amount of work; maybe a few extra minutes taking pictures, and 10 minutes more on the report if it is an interior order. I am more concerned with the distance I have to travel, and how busy I am with other work.
0 votes Thank Flag Link Fri Apr 18, 2014
When Core Logic proposed the fee negotiation, we actually increased our fee and continued to receive orders. We are not doing mass production anymore but did for many years. We are only completing BPOs for the companies that are assigning listings to us on a regular basis.
Flag Fri Apr 18, 2014
here in mass I charges 175.00 exterior and 200 interior otherwise it is not worth my time
0 votes Thank Flag Link Thu Apr 17, 2014
This question just won't die! My new record is $200 for an exterior. For that, it's worth the couple of hours. Of course, in Key West, it's never more than a five minute drive (or 10 minute bike ride!) to get the pictures...
0 votes Thank Flag Link Thu Jan 23, 2014
What are you guys doing over there? Where are the agents in Key Largo? We get requests to complete BPOs at the Keys all the time, we find it hilarious because we always take a couple of mini vacations to the keys every year and were unable to step foot over there in 2013. Oh, I miss Bahia Honda!!!
Flag Thu Jan 23, 2014
Our office policy is to take no less than $125 for an exterior BPO. The price goes up for interior jobs and if we have to travel. You can make some decent money on the side doing them while you are working on your real estate career. I wouldn't scoff at anyone who chooses to do them... but I wouldn't let the companies lowball you either.
0 votes Thank Flag Link Thu Jan 23, 2014
In my area, I've done a few BPO's that have lead to listings, but it's pretty minimal. I'd say 1 in every 5 has lead to one for me. I charge $75 for exterior and $100 for interior (more if's a rush job), because the gas and time doesn't seem worth it to me if I do it for less. Some companies will go back and forth with pricing with you, but the ones that are firm on a lower price I tell to look elsewhere.
0 votes Thank Flag Link Thu Jan 9, 2014
My wife used to do BPOs for extra spending money, but the banks always dictated how much they would pay. It was $75 and then dropped to $40 a few years ago. We stopped doing them because it wasn't worth it at that price.
0 votes Thank Flag Link Mon Mar 4, 2013
Hi Michael,

Interesting discussion so far. The BPOs that I have been doing are sent to me asking if I am willing to do it. The price is set already for an exterior $40 to 50 and $75 for interior unless it is a rush order.
0 votes Thank Flag Link Sun Mar 3, 2013
What a joke Yanoska. You ask "should I give you the response you deserve?" , but when I replied to your last response you removed your answer when you saw I was correct and took my reply with it.
You CAN'T do a fair job on a BPO in 48 minutes or 60 in 48 hours (which comes out to the same thing if you remember my last reply). IT CAN'T BE DONE...PERIOD. Yes you can get a listing from a BPO, but that comes from a previous relationship with the bank and NOT some BPO company. Those are listings you "have" before the BPO. Take a look at your own profile from 2002 until last month. You were an REO agent. That's not the same as some poor schmuck who gets asked to do a BPO and think they have a chance at getting a listing.

I'm not here to judge your work. I answer questions when I see fit and if there is an answer I believe is incorrect I will post accordingly. There are way too many here who are more concerned with getting a VIP badge or moving up the ranks in their neighborhood than help people with questions. I've been in this business for more than 20 years and although I haven't seen it all, I've seen most. In addition to being a director of my current board of Realtors, I was VP of my last board and before that Chairman of Professional Standards. I have no problem speaking up. You may like it and you may not, but if I see something I want to comment on I will. Sorry if I offended you. The original question was on BPO prices and I think MOST agents who do them are prostituting themselves by believing they will get a listing down the road and they end up working for minimum wage.

Donald A Mituzas
Licensed Associate Broker
2008 Realtor of the Year
Current Director - Hudson Gateway Association of Realtors - HGAR
Immediate past VP - HGAR
Immediate past Director - New York State Association of Realtors
Past VP - Putnam County Association of Realtors - PCAR
Former Chairman - Professional Standards - PCAR
Douglas Elliman Real Estate - New York's #1 Broker
http://www.nyhomeseller.com
0 votes Thank Flag Link Sun Mar 3, 2013
The way I see BPOs and the way that they have worked out for me, is that in any ferocious market (like South Florida) time, effort and money are vested into any transaction, securing a listing, selling a home, renting a home. For example:

In today's market you can spend an average of 48 working hours with a Buyer and have absolutely nothing at the end of the 48 hours. In 48 hours I can turn around 60 exterior BPOs and get a check in the mail 15 days later for $3,000.00.

In addition as I previously stated and I hate to be redundant, BPOs I completed in the past turned into REO listings, on-going relationships with major Asset Management Companies and a fantastic Buyer and Seller clientele that came to me through those REO listings.

It is very hard work but is it worth it? You bet it is. Some of us need to work harder for the money but if that is the only way so be it.
0 votes Thank Flag Link Fri Mar 1, 2013
Hello Barry and Happy New Year, please email me directly so that I can tell you the do and don't.
Flag Fri Jan 10, 2014
What do you do that leads the BPO, or at least some of them, to turn into a listing?
It sounds like other agents are not having the same results.
Flag Wed Jan 8, 2014
Yanoska,

Those for the valuable feedback. I will have to rethink doing these> I have been turning them down based on the advice of others but nobody every explained this side of things.
Flag Wed Jan 8, 2014
Figure out if you are being used as a 2nd opinion or really have a chance of getting the REO listing. Heck, I do BPO CMA's all the time for free for private party sellers. Only to find out later their cousin is an agent and they wanted a local agent to come up with price and list with that guy from out of area. Even if the bank would pay a $100 for an inside BPO I wouldnt want to spend the 2-3 hours if I am being used to quality check the primary agent getting the listings from that source.
0 votes Thank Flag Link Fri Mar 1, 2013
I agree with previous comments that 1) the company that hires you sets the price and 2) they don't lead to listings. I used to do 5 to 6 per week at an average of $65 for an exterior and $90 for an interior. I've never had a BPO company allow me to negotiate price - except for one time when they needed a 24 hour turnaround. BPO fees are obviously not much of a payday for a task that takes about 45 minutes per report to complete and requires time & gas to do the inspection. They are for the most part a dangerous distraction that keeps you from focusing on your core business, thereby costing you money in the long run.
0 votes Thank Flag Link Fri Mar 1, 2013
You cannot do BPOs if you are a one man show, you need assistance typing, downloading and uploading photos, etc. It is very hard work, I work very long hours and so does everyone here in the office, I have listings and Buyers to attend to as well. I invite you to join REOPro where you can learn a lot more about BPOs, if you remain interested. In this forum you will find very useful information including a FREE list of BPO and REO companies.
0 votes Thank Flag Link Thu Feb 28, 2013
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