Guys, I work both sides of the fence here. The asset manager side where I hire agents for BPO's / listings and the agent side where my firm conducts the BPO's and takes listings.
When on the agent side, I really want to make the BPO factory happy. Our staff will address requests for review of numbers, but in no circumstances will we adjust to make the Factory look good.
There are many reasons that a BPO is being conducted. It might be pre-foreclosure, to confirm value on a property about to go in contract or because the lender is selling loans. If selling, they want the BPO to be as high as they can get it and if buying, they want to the BPO to be as low as possible. Fun game, huh?
Look at this from the asset managers side for a minute. What I would ask everyone is to ALWAYS look at this from the asset managers perspective.
I need the truth. I can handle the truth.
I also answer to other people. I am talking to the client based on YOUR report. If the report is bad then I have bad info, list at a bad price and I look like a fool.
How long are you going to stay in the good graces of the asset manager if you make them look bad?
This whole thing is equal to the retail agents "buying the listing". It is no good for anyone.
My suggestion is to be honest with your client and build trust. In the long run, the file manager asking you to push values is going to bury himself and bring you along with him.
The last thing you want is for a client to see your pushed value and tell you "Ok. Go get it for me." You have now created your own demise. You are the listing agent on an Overpriced Turkey and you did it to yourself.
Do you have questions about distressed assets, receivership or bankruptcy sales, auctions? Email me at rfk@gryphonusa.com and I'll try to answer it in an upcoming post.
Richard F. Kruse is the President of Columbus, Ohio based Gryphon USA, Ltd. (www.gryphonusa.com). The Gryphon Organization includes Gryphon Asset Management providing receivership and consulting services in the distressed marketplace, United Country Gryphon Realty & Auction Group (www.ucohiorealty.com & www.ucohioauctions.com) providing real estate brokerage and auction services throughout Ohio and OnlineAuctionUSA.com (www.onlineauctionusa.com) providing commercial asset liquidations from the Midwest to East Coast.
United Country Gryphon Realty & Auction Career Opportunities Available. Call 614-885-0020 x 17
Rich,
My biggest problem with doing BPO's is that some Companies want me to pull comps from thin air. I can find zillions of listing comps right now and hardly and solds. Doesn't that alone speak volumes?
I lost a client because I told them there were NO MORE COMPS. They told me "if you're not willing to find the comps we will have to give this bpo to someone else". I told them to Please give it to someone else. Of course, now they are giving everything to someone else. I wish I knew what comps were used.