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.
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?
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.
You are using the time period "48 hoursâ€ 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?
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...
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.
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.
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
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.
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.
Keller Williams Realty
San Jose, CA
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 email@example.com
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.
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
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.