Ron, Real Estate Pro in Chicago, IL

Are BPO's the new wave of the future?

Asked by Ron, Chicago, IL Wed Dec 9, 2009

Many agents are struggling right now and they need real business in order to thrive in this down market. I have tried to do real estate the old fashioned way, and it seems that things can be very slow. I recently started to do BPO's for banks and now my income has sky rocketed! I wonder if doing broker price opinions is the wave of the future for real estate professionals? http://www.centralhomeowner.info

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I agree with Thomas. If you're doing a lot of BPOs, you won't have the face time needed for clients. You'll make the income you need in this market, but I agree you're putting yourself at a disadvantage when the market corrects. Where will your clients come from? At least 3/4 years ago we were doing them for the shot at listing REOs.
1 vote Thank Flag Link Fri Oct 1, 2010
I spoke with an agent the other day who does over 30 BPOs a week. Obviously she has no time to spend on clients. It's a great way to supplement your income in a difficult market but not great for building your sales and listing business.....unless you are doing it with a goal of getting foreclosure listings.
1 vote Thank Flag Link Fri Oct 1, 2010
Just a phase Ron, but looks like it will be a long phase. Just have a fall back when you see the market shifting back to a more normal market.
1 vote Thank Flag Link Fri Sep 17, 2010
Bpo's are a good way to supplement your income for extra money to grow your business. They keep you in touch with the market and prices in different neighborhoods but they keep you out of touch with your clients or potential clients. I signed up with 50 Bpo companies and received nothing in the first month. Slowly, I began to get business and now I am doing 10 to 15 a week. I recently looked in MLS to see if any of my Bpo's had turned into Reo's and was shocked by the number I found. 27 of my Bpo's were listed for sale or under contract for a combined total of over 2 million dollars. Most, if not all were 3% for the listing agents. I am no mathematician, but I know that there is more money in selling a house than taking a picture of it. I think that most of us who do Bpo's, do so with the hopes of seeing a listing somewhere down the road. The key is to find out how to cross the line from being a Bpo agent to a listing agent.
Ron, I did not mean to answer your question with a story but I would like to know if you are using the auto valuation software out there that is available? It makes doing Bpo's much faster and accurate. I commend you on your recent success and wish you the best of luck in the future.
0 votes Thank Flag Link Fri Oct 1, 2010
Not for me! I discovered the rental market. In my area the typical commission on a rental property is equal to one month's rent. So, I can spend 5 hours doing a BPO and get $100 or I can list one rental, spend about 5 hours finding a tenant and get $700 or more, in my pocket, that's AFTER my broker's split. And I am building relationships with future buyers and sellers! I rented an apartment for one landlord and he just called me to list three more! It's a no-brainer!

Why work for the banks at slave wages when I can get paid what I am actually worth? Check out the rental market in your area.
0 votes Thank Flag Link Fri Oct 1, 2010
Ron,

With 2.3 million homes slated as shadow inventory for 2011, BPOs could very well be the wave of the future for agents wanting to survive.

If this happens, and BPOs are needed in masses, order fees will drop and rules will tighten. What is actually earned will be hard to make a living on, but it will be possible. This will require more of an hourly job routine rather than a business owner routine.

There will always be more money to be made in selling homes, but over the next few years BPOs will be a big part of the industry unless rules change to favor appraisers.
Web Reference: http://www.bpoteaching.com
0 votes Thank Flag Link Thu Sep 30, 2010
Hi Ron,

I was doing 50 BPOs a week in 08 & 09 but has seen it slow down significantly this year as the banks have slowed the release of inventory. I think it can be a supplement to help your income but ultimately doing that many BPOs caused me to loose touch with my clients. I don't think it is the wave of the future perhaps just a small part of it.

Thanks for the question!
Chris Blasic
0 votes Thank Flag Link Fri Sep 17, 2010
I don't think that its the future for real estate professionals, actually short sale closings are picking up here in dallas and some prices are getting steady.
0 votes Thank Flag Link Sun Mar 21, 2010
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