Looking for BPO Recommendations

8 Replies

Hi Everyone, 
I'm looking for a BPO vendor. Does anyone have any recommendations? Looking for a vendor that can help with the following:

- Include all or some of repair estimates

- Exterior drive by BPO

- Occasional interior BPO

- Commercial BPO

- Nationwide service

    Any recommendations would be greatly appreciated. Thanks!

    @Johnny Forgione We like Summit Valuations the best. In our experience, they make the least mistakes out of the others we have tried and are easy to work with when we dispute the 1 in 7 BPOs that comes in poorly. They'll review the agents work and make revisions if need be.

    @Andy Mirza

    I will need to try them. I shake my head at the quality of these BPO’s

    Had one from a company that they listed property as occupied when it had condemned stickers all over it

    Another one is as on an asset I was selling and seller came back with a bpo at 1/3 of what we anticipated. When I saw the bpo all the comps were a mile away and they ignored the three similar homes that sold on the street that were more in line with our expectation.

    So besides these reports from most companies being awful and very overpriced on the flip side many investors just scan the value of them and really don’t pay attention and ask the questions or confirm if it’s done properly

    @Chris Seveney I think it has a lot to do with the quality of them verse the amount they are being paid, and the amount of work those BPO agents are accepting to get that dollar per drive/work amounts to. The price is low to get the BPO down and a race to the bottom to make sure they get a BPO down in less amount of time with less pay to get picked more by the vendors is where the quality drops quickly.

    The fact that BPOs are notoriously inaccurate is a HUGE advantage for smaller investors that buy from hedge funds. Big banks and hedgefunds accept the BPO as "the" value and won't do more research into it. As long as the valuation date is recent, whatever number is in that cell in that tape is what they go off of. For smaller investors, we can scrutinize our BPOs & do our own deeper dive into value. When you find the underwater note where you have a high certainty that the property is worth $250k and the seller thinks it's worth $180k, you've got yourself a great deal.

    @Andy Mirza

    I absolutely agree Unfortunately I find most companies run comps on homes that have been renovated or would be more of an arv than pricing it as a REO

    But you are correct there are deals to be had