California has the right idea:
DRE Can Discipline Licensee for Inflating BPOs: Beginning on January 1, 2009, the DRE can suspend or revoke a real estate license if the licensee generates an inaccurate opinion of value (Broker Price Opinion or BPO) for a short sale of residential real property to manipulate the lender to reject the short sale or to acquire a financial or business advantage, such as obtaining a listing agreement. This new rule aims to preclude a self-serving agent from inflating a BPO in hopes that the lender will reject the short sale, foreclose on the property, and give the BPO agent an REO listing. Senate Bill 1737.
I can't think of a bigger waste of time. Realtors do these BPO's basically for nothing hoping to get the listing. Getting the listing rarely happens.
I got a call for Jim at some company or another. Breathlessly, he announces that he has a BPO for me to do. It is due within 24 hours. Pictures of the subject, pictures of the compatibles, etc, etc, etc. Did I mention that they will pay me $30.00. Gee whiz, my heart was just a flutter with excitement.
Have you seen what the BPO forms look like? Certified appraisers get $350 and 7-10 to complete. I have a friend who does 5 to 10 a week at $50 a piece. He told me it is better than nothing. At least I have some income coming in. He has never gotten a listing from the BPO's.
These management companies get what they pay for. Drive by BPO's and appraisals are useless. They have to "assume" average interior conditon. That rarely is the case. The interiors are usually in inferior condition, three 30 yard dumpsters worth of trash, plumbing and heating issues, etc.
If we ignore BPO's then these companies will have to hire appraisers to do the work. The end product will be a listing that is priced correctly from the start.
Say no to BPO.
If you are considering a Traditional or Short Sale of your home in Phoenix, Scottsdale or any location in Maricopa County Arizona, you owe it to yourself to talk with Haven Express @ Keller Williams Arizona Realty to determine whether Tony and Suzanne Marriott are the best real estate Brokers in the Phoenix and Scottsdale metropolitan area to help you with the Successful Sale of your home.
Tony and Suzanne have personally Listed, Sold and Closed more than a hundred Short Sales with the highest list to close rate in the Phoenix Metro Area!
Tony Marriott - Chief Executive Officer - Haven Express @ Keller Williams Arizona Realty
Suzanne Marriott - Chief Learning Officer - Haven Express @ Keller Williams Arizona Realty