Kansas City Home Owners find the Fox guarding the hen house!
“Broken Promise Opinion”?
You were promised an independent, third-party opinion of your home....Is that what you received?
Many Lenders are discontinuing the BPO practice; turns out most Agents send values back that reflect the loan values, in an effort to get and stay in the Lender’s good graces...In that way, the Agent gets more new BPO requests, for which they are paid $150-$250 per BPO.
Many of these agents have no MLS sales....But stay plenty busy with BPO requests.
Yes, the Lenders deliver loan values to the Agents with the BPO requests....So the Agent has the target before they deliver the “third-party, arm’s length” opinion.
Maybe I’m just cynical?
Maybe.
In a recent transaction, the Lender sent 3 agents to construct BPO’s for a listing of mine in Lenexa....2 of the three came back at more than $400,000....The third returned a value of $287,000.
The appraiser also returned a value in the high $280,000’s.
Property went under contract after 53 showings. And sold for the high $280,000’s.
One of the Agents who delivered the $400,000+ BPO is a Broker...Although a Broker has a higher standard of care than an Agent, this guy obviously doesn’t care. Good news is the Lender took the data I delivered regarding the market activity in the subdivision and dumped the Broker’s opinion.
“Broken Promise Opinion”?
You were promised an independent, third-party opinion of your home....Is that what you received?
Many Lenders are discontinuing the BPO practice; turns out most Agents send values back that reflect the loan values, in an effort to get and stay in the Lender’s good graces...In that way, the Agent gets more new BPO requests, for which they are paid $150-$250 per BPO.
Many of these agents have no MLS sales....But stay plenty busy with BPO requests.
Yes, the Lenders deliver loan values to the Agents with the BPO requests....So the Agent has the target before they deliver the “third-party, arm’s length” opinion.
Maybe I’m just cynical?
Maybe.
In a recent transaction, the Lender sent 3 agents to construct BPO’s for a listing of mine in Lenexa....2 of the three came back at more than $400,000....The third returned a value of $287,000.
The appraiser also returned a value in the high $280,000’s.
Property went under contract after 53 showings. And sold for the high $280,000’s.
One of the Agents who delivered the $400,000+ BPO is a Broker...Although a Broker has a higher standard of care than an Agent, this guy obviously doesn’t care. Good news is the Lender took the data I delivered regarding the market activity in the subdivision and dumped the Broker’s opinion.
Many lenders have found that the BPO process is flawed and slowing down the short sale process.
If you’re considering a short sale, and need an expert opinion of your options and you next step....Let’s talk.
If you’re considering a short sale, and need an expert opinion of your options and you next step....Let’s talk.
RE/MAX sells more homes than any other real estate company.
For a reason...should we talk?
Blog post written by the Dowell Taggart Team of RE/MAX Premier Realty
Comments are appreciated! Go ahead and add your 2 cents . . .
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