BPO's how much do they pay? also why do so many agents screw them up so badly?

Just curious... recently, I've been seeing some really ridiculous pricing on homes thanks to terrible BPOs. $100K for a home that wouldn't possibly sell for $50K even if you gave away a free puppy with it...

In fact ,the condo next to one I bought a couple months ago for 31.5K came on the market for $60K. Mine had all nice tile, just needed paint and some minor repairs, the new one is trashed: broken kitchen cabinets, tons of damage, etc... What gives with the crazy lender owned pricing? should I just send them a cash offer for 25K? send pictures of the damage and some honest comps to explain my offer? 
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March 31 2011 - US
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BPOs pay anywhere from $35-$200, with the average being around $50. They used to pay more, but with desperate agents the price has been driven down.

Can you make a living doing BPOs? Yes, with a system in place. It's much more worth your time to represent buyers and sellers.

Agents screw them up because they do it like a CMA. A BPO is not a CMA, and that's a fact. There are several differences but I won't get into that. Any home is going to be valued higher with a CMA than a BPO.

Most agents think BPOs are a chance at an REO listing. This is myth. However, an agent will come in high on a BPO in hopes of getting the listing from an asset manager (it wouldn't sell at that price anyways so where is the common sense in getting the listing?)

Sending in a cash offer with photos (provided the listing agent is able to submit them) has worked well in overriding a BPO. If you send in comps, do the valuation in terms of a BPO, not a CMA, and it will go over much better.
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March 31 2011
I saw an ad not that long ago where someone was looking for agents to do BPO's. I don't think it paid more than $25.00 or $50.00

You get what you pay for.

$25.00 BPO is worth perhaps 30 minutes of my time.

I do BPO's using an old Fannie Mae electronic document. It takes for-ever to do one because I am careful to pick my comps, do the math and do it right. And I do BPO's for only one client. Way too much work and certainly too much for $25.00. What a joke.
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March 31 2011
Michael,

You do get what you pay for. Everything in a BPO is based on the tax card for the subject property basic info.

Favorite question from an agent who had done over 100 BPOs... What's a tax card? Whatever they were paid, it was too much.
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March 31 2011
 
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