While a reversal of the business environment is unfortunate for any company, some asset management companies and banks are allowing agents to bear the costs of change by not paying them on time for completed BPOs. But that's not the only reason many companies are slow to pay BPOs.

Do agents share in the blame?

While it's true that some asset management companies are having money problems due to slow-pay from their banking customers, and others have an unwritten policy of stiffing agents, agents also share in the slow-pay problem due to shoddy work habits, says Jack Beierle, Jr., president of Premiere Real Estate Services in Parsippany, NJ.

Premiere has been cited by agents online in Agent News and on agent listservs(tm) as a company that delays payments to agents, a position that Beierle defends by laying some of the blame on the agents.

"The banks won't pay for a incomplete BPO," says Beierle. "Every blank has to be filled out and often the agents leave some blanks. The bank is paying for the Realtors' information, and in some cases there is a foreclosure sale scheduled. A BPO doesn’t do any good if it comes in after the sale date, and the bank will refuse to pay for the service."

Beierle also says that many agents expect to be paid for poor quality or incomplete work. "A lot of agents need to work on the quality of their BPOs," explains Beierle. "You can't spend five minutes on it and expect to be paid. You have to put a little time into it. There are cases where there are major problems with the house, and the agent doesn't mention anything in their BPO. We know that the house was vandalized or had a major fire, but the agent doesn't know that unless they go by the house. We've caught many like that where they used an old photo instead of taking onsite pictures, and it was obvious that they never went to the house."

"Sometimes the agents will just put a price and nothing else and expect to be paid," adds Beierle.

Many BPOs also lack information that is vital to the asset management company, such as the agent's tax I.D. number, which can also cause delays. BPOs can also get misplaced, so agents should keep copies in case they must resend them to the asset manager. They should check for receipt of the BPO to make sure that it was delivered in time to meet the bank's or asset manager's deadline. Any delays in payment leave it up to the agent to inquire about.

"For the most part, the agents do a good job," says Beierle. "Everything would work out great if we got paid on time. We send out checks by the thousands to agents everyday. We have agents we have used for about eight years that do a great job. It's the people who don't get the BPOs in on time that have the most problem getting paid."

Other tips:

• Make sure you understand what type of BPO is required, as there are several types including those which require drive-bys and those which include interior inspections. Ask the asset manager to supply you with a list of steps that he or she wants you to complete, so that you can check them off and put times where applicable.

• Make sure you understand the due date of the BPO and can meet the expectation of the asset manager to deliver your report on time.

• Find out how the asset manager wants to receive the BPO. Some are set up for e-mail while others may not be. Don't assume that you can e-mail the BPO if you are up against deadline. Find out if costs such as overnight delivery are reimbursed especially if you have been given a BPO order that requires a quick turnaround.

• Sign and date photos that you took of the property. Keep copies with development receipts. If you are using a digital camera, put the photos in a dated file.

• When you've completed the BPO, follow up immediately with the asset manager to make sure that the BPO met expectations. Be prepared to act quickly to supply missing data.

If you would like to do BPOs, but want to avoid slow-paying companies, visit Appraisersforum.com. While this is a resource for appraisers, not real estate agents, but you might gain some insight by reading what the appraisers have to say on the Clients - Good, Bad, Ugly forum moderated by Wayne McKerley. Registration is required to view the content.

There is also a subscription-based service open only to appraisers called Deadbeatlistings.com. Realtors are not allowed to join, unless they are licensed appraisers, but you may know an appraiser who will be happy to share the names of good companies as well as deadbeats with you.

There is an organization, the National REO Brokers Association, where agents specialize in BPOs and REOs. "On our forum the news gets out about the “good” and “bad apples,” says Broker/member Linda Vane.

For more information on BPOs, visit Google.com, and search for broker price opinions. A list of over 96,000 resources will pop up.

Published: April 17, 2002

Use of this article without permission is a violation of federal copyright laws.

Blanche is a renowned author of five real estate books. Her newest, Bubbles, Booms and Busts: Make Money In Any Real Estate Market, McGraw-Hill, was rave-reviewed by The New York Times. She was also selected from hundreds of real estate experts to contribute to Donald Trump's book, Trump: The Best Real Estate Advice I Ever Received: 100 Top Experts Share Their Strategies, Rutledge Hill Press, and is featured on page 68. Order Now Review - Honors In 2006, Blanche was selected among scores of candidates to author two consumer real estate guidebooks for the National Association of Realtors: The NAR Guide to Home Buying, and The NAR Guide to Home Selling, Wiley & Sons. She is currently planning two new books for the NAR and its members.       Known for her keen insight into real estate industry issues and for her ability to make complex subjects easy to understand, Blanche is a sought-after keynote and continuing education speaker. Real estate organizations from MLSs, to brokerages, to franchisors, to associations hire her to provide up-to-the-minute analysis of real estate industry news and advice on how to improve revenues. Her passionate delivery, peppered with stinging wit, is a huge hit with audiences and fans. Don Klein, CEO Greater Nashville Association of Realtors, Blanche Evans, Richard Courtney, president 2007, GRAR "The GNAR membership meeting last week featured Blanche Evans as the keynote speaker. Her comments and insights resonated extremely well with those in attendance and we have had many requests for copies of her PowerPoint Presentation. She was a terrific part of the membership meeting and convention program!" - Don Klein, CEO Greater Nashville Association of Realtors Coverage from WSMV, Nashville - 8-14-2007 That Interview Guy - Get Inside The Head Of Today's Generation 2007 AE Institute Session - To purchase 2006 AE Institute Session - Parts 1 2 3 4 5 6 7 8 9 HouseValues Mastermind call - Parts 1 2 Blanche's fireside chat with Jeremy Conaway, HAR - Click here. For more articles by Blanche, click here.