Confronting Unethical Practices While Doing BPO Work: A Personal Story

Hi all,

I wanted to write a quick note based on a personal experience I went through last week. I accepted an Interior BPO Order. After researching, I found that the subject property was a short sale that was currently being lived in by the homeowner.

I called the point of contact on the order instruction sheet and thought it was weird when it wasn't the listing agent...hum, it was another agent that specialized in short sales (both listing them and helping buyers purchase them).

As I called in I spoke with her assistant to try to get help in contacting the homeowner so that I could lock down a time to do my interior inspection. The assistant was very helpful and took my information so that she could help coordinate everything.

A few hours later I received an email from the assistant that I talked to earlier. She wrote something to this effect:

Cannot reach homeowner to schedule an appointment with her, please call her directly over the weekend. Also, the homeowner is in short sale on this property, this is the first offer within almost a year of being on the market. The current accepted offer is $300,000 is a fair price, please see comps that we selected attached to this email that support this. Please take a look at these.

WOW, two very big No-No's occurred here. One, it is very unethical to let anyone know the accepted offer price on a purchase and sale contract that hasn't closed. Two, they went so far as to provide me with comps.

Here is my exact response to their email:

"Thanks for your help. I was very concerned to see that you revealed the
actual accepted offer price. This is completely confidential information
that I should never know and have no need to know about. I'm not sure if
you are aware of this but it is a BIG no-no in our business.

Also, as you provide comps that you've selected and share with me, I
feel that you are trying to steer me towards the accepted price. It could
come across as what you are doing is trying to influence me as I do the BPO.
I find that extremely unethical. Please don't do this again to me."

The short sale agent responded back promptly to my email apologizing, saying that she confused me with an appraiser (who just wants to know the facts) and that they will look out to not do this again if I get another of their short sale properties.

Make Sure to Stand Up For Yourself, Don't Let Anyone Push You Around or Try to Intimate You About How to Do Your BPO Work or What Opinion of Value You Should Give on Your BPO's.

Warmly,

Nicole Ocean

Certified Real Estate Instructor

Founder of BPO University