The evolution of broker price opinions
Broker Price Opinions- I spend a good portion of the working week completing quite a few of them, just as many other Realtors do. Even before the passage of the Dodd-Frank Act, BPOs could not be used for new, purchase, government backed loans. What they were used for (and are still used for) is dropping PMI, determining price (please note: price opinion – hence the name BPO, not value, appraisers determine value, as real estate agents determine price) for REO listings, short sales, refinance mortgages, bankruptcy, note sales, divorces, relos, sheriff or auction sales, for insurance companies, loan modifications, and even for estates.
While the forms will vary based on the company, a BPO usually contains information on a subject, the very local sub-market, as well as listing and sales comparables. Whether due to pressure from those in government or throughout different aspects of the real estate and banking industry, BPOs are becoming less than a highly detailed CMA and more an appraisal-esque report. Companies are also requiring more education, higher E&O insurance, if not outright asking to be added onto the policy itself, and lowering contracted fees as well.
Certification alphabet soup
Whacked out changes have occurred across the board from a number of different banks, and outsourcing companies in the last few years, none of them really seem to mesh with one another, or make a ton of sense other than maybe the education thing. Preferential assignment of BPOs may not be the preferred terminology to use, however there has been a push to attain additional education, actually, certification from any number of groups, be it NAR’s newly introduced BPO Certification, the certification offered by The National Association of Broker Price Opinion Professionals, online courses offered by other loss mitigation companies, or continuing ed classes from anyone else out there.
On at least a few instances, there have been requests to up E&O policies from a million bucks (probably the industry norm) to three million. For BPOs, and even tossing in REOs into the mix, it just isn’t cost effective to raise the limit for some real estate companies; including the fact that more than one agent is working this niche. The expense doesn’t justify the payout.
The new industry bidding war
One notable company implemented the requirement of actually being added onto E&O policies a couple of years ago. This same company has recently started a bidding war between Realtors in regards to fees. Instead of an order being broadcast out to Realtors in a given area at say, $50, and the first one to accept, gets it. Now, Realtors can bid down or up in $0.50 increments, lowering their fee by $7.00, or raising it by a whopping $2.00 from the base price. There’s nothing like whoring oneself out in the name of getting business, right? Not when many of these companies are tightening their search parameters – try finding comps for a somewhat normal house, let alone an obscure one, within a third of a mile when it’s an urban area, on mile when suburban, or three miles in a rural area… seriously.
Additionally, some companies now require driving by all comps and original comp photos to boot. Another company wants Realtors to upload a copy of tax records as part of the order. Let’s not forget my favorite new requirement of all- a complete sales history not only of the subject, but of all the comparables to boot. We also enjoy the companies who charge us for using whatever jacked up flavor of the month online platform they are so inclined to use, none of which are exactly user friendly. The fees go from one to two percent to a flat fee of $5 or $10… per ORDER.
BPOs & appraisals- speaking up for the industry
Allow me one brief second to speak both for the masses, and to quote myself, dude, if I wanted to do appraisals, I would have gotten a freaking appraisal license. In some messed up way, many of these things are knee-jerk reactions to an equally messed up housing industry, and yeah probably some (albeit relatively few) scheming, shmuck, agent-types were out there falsifying or influencing BPOs. Newsflash- this is why we have real estate licensing laws and means of punishment for not following them. The sins of the father should not be revisited upon the son.
Decision-making when between procrastination and desperation
(EDITORIAL) Sometimes making a decision in business can loom so large over us that we delay making them until it’s absolutely necessary. Why?
I need to confess something to you
So, a little confession’s good for the soul, right? I feel like I need to confess something to you, dear reader, before we jump right into this article. What follows is an article that I pitched to our editor some months back, and was approved then, but I’ve had the hardest time getting started. It’s not writer’s block, per se; I’ve written scores of other articles here since then, so I can’t use that as an excuse.
It’s become a bit of a punch line around the office, too; I was asked if I was delaying the article about knowing the sweet spot in decision making between procrastination and desperation as some sort of hipster meta joke.
Which would be funny, were it to be true, but it’s not. I just became wrapped up in thinking about where this article was headed and didn’t put words to paper. Until now.
Analysis by paralysis
“Thinking about something—thinking and thinking and thinking—without having an answer is when you get analysis by paralysis,” said St. Louis Cardinals pitcher Matt Bowman, speaking to Fangraphs.
“That’s what happened… I was trying to figure out what I was doing wrong, or if I was doing anything wrong. I had no idea.” It happens to us all: the decisions we have to make in business loom so large over us, that we delay making them until it’s absolutely necessary.
Worse still are the times that we delay them until after such a time as when making the decision no longer matters because the opportunity or market’s already moved on. So we try to find the avenues for ourselves that will give us the answers we seek, and try to use those answers in a timely fashion. Jim Kaat, the former All-Star pitcher said it well: “If you think long, you think wrong.”
Dumpster Diving in Data
In making a decision, we’re provided an opportunity to answer three basic questions: What? So what? And now what?
The data that you use to inform your decision-making process should ideally help you answer the first two of those three questions. But where do you get it from, and how much is enough?
Like many of us, I’m a collector when it comes to decision making. The more data I get to inform my decision, and the sufficient time that I invest to analyze that data, I feel helps me make a better decision.
And while that sounds prudent, and no one would suggest the other alternative of making a decision without data or analysis would be better, it can lead to the pitfall of knowing how much is enough. When looking for data sources to inform your decision-making, it’s not necessarily quantity, but an appropriate blend between quantity and quality that will be most useful.
You don’t get brownie points for wading through a ton of data of marginal quality or from the most arcane places you can find them when you’re trying to make an informed decision. The results of your ultimate decision will speak for themselves.
“Effective people,” said Jack Welch, former CEO of General Electric, “know when to stop assessing and make a tough call, even without total information.”
Great. How do I do that?
So, by what factors should you include (and more importantly, exclude) data in your decision-making?
Your specific business sector will tell you which data sources most of your competitors use already, as well as the ones that your industry disruptors use to try to gain the edge on you.
Ideally, your data sources should be timely and meaningful to you. Using overly historical data, unless you’re needing that level of support for a trend line prediction, often falls into “That’s neat, but…” land. Also, if you’re wading into data sets that you don’t understand, find ways to either improve (and thus speed) your analysis of them, or find better data sources.
While you should be aware of outliers in the data sets, don’t become so enamored of them and the stories that they may tell that you base your decision-making process around the outlier, rather than the most likely scenarios.
And don’t fall into this trap
Another trap with data analysis is the temptation to find meaning where it may not exist. Anyone who’s been through a statistics class is familiar with the axiom correlation doesn’t imply causation. But it’s oh so tempting, isn’t it? To find those patterns where no one saw them before?
There’s nothing wrong with doing your homework and finding real connections, but relying on two data points and then creating the story of their interconnectedness in the vacuum will lead you astray.
Such artificial causations are humorous to see; Tyler Vigen’s work highlights many of them.
My personal favorite is the “correlation” between the U.S. per capita consumption of cheese and people who died after becoming entangled in their bed sheets. Funny, but unrelated.
So, as you gather information, be certain that you can support your action or non-action with recent, accurate, and relevant data, and gather enough to be thorough, but not so enamored of the details that you start to drown in the collection phase.
For many of us, delegation is an opportunity for growth. General Robert E. Lee had many generals under his command during the American Civil War, but none was so beloved to him as Stonewall Jackson.
Upon Jackson’s death in 1863, Lee commented that Jackson had lost his left arm, but that he, Lee, had lost his right. Part of this affection for Jackson was the ability to trust that Jackson would faithfully carry out Lee’s orders. In preparing for the Battle of Chancellorsville, Jackson approached Lee with a plan for battle:
Lee, Jackson’s boss, opened the conversation: “What do you propose to do?”
Jackson, who was well prepared for the conversation based on his scout’s reports, replied. “I propose to go right around there,” tracing the line on the map between them.
“How many troops will you take?” Lee queried.
“My whole command,” said Jackson.
“What will you leave me here with?” asked Lee.
Jackson responded with the names of the divisions he was leaving behind. Lee paused for a moment, but just a moment, before replying, “Well, go ahead.”
And after three questions in the span of less than five minutes, over 30,000 men were moved towards battle.
The takeaway is that Lee trusted Jackson implicitly. It wasn’t a blind trust that Lee had; Jackson had earned it by his preparation and execution, time after time. Lee didn’t see Jackson as perfect, either. He knew the shortcomings that he had and worked to hone his talents towards making sure those shortcomings were minimized.
Making trust pay off for you
We all deserve to have people around us in the workplace that we can develop into such a trust. When making decisions, large or small, having colleagues that you can rely on to let you know the reality of the situation, provide a valuable alternative perspective, or ask questions that let you know the idea needs more deliberation are invaluable assets.Finding and cultivating those relationships is a deliberate choice and one that needs considerable and constant investments in your human capital to keep.Click To Tweet
Chris Oberbeck at Entrepreneur identifies five keys to making that investment in trust pay off for you: make authentic connections with those in your employ and on your team, make promises to your staff sparingly, and keep every one of them that you make, set clear expectations about behaviors, communication, and output, be vulnerable enough to say “I don’t know” and professional enough to then find the right answers, and invest your trust in your employees first, so that they feel comfortable reciprocating.
Beyond developing a relationship of trust between those who work alongside you, let’s talk about trusting yourself.
For many, the paralysis of analysis comes not from their perceived lack of data, but their lack of confidence in themselves to make the right decision. “If I choose incorrectly,” they think, “it’s possible that I might ________.” Everyone’s blank is different.
For some, it’s a fear of criticism, either due or undue. For others, it’s a fear of failure and what that may mean. Even in the face of compelling research about the power of a growth mindset, in which mistakes and shortcomings can be seen as opportunities for improvement rather than labels of failure, it’s not uncommon for many of us to have those “tapes” in our head, set to autoplay upon a miscue, that remind us that we’ve failed and how that labels us.
“Risk” isn’t just a board game
An uncomfortable fact of life is that, in business, you can do everything right, and yet still fail. All of the research can come back, the trend lines of data suggest the appropriate course of action, your team can bless the decision, and you feel comfortable with it, so action is taken! And it doesn’t work at all. A perfect example of this is the abject failure of New Coke to be accepted by the consumer in 1985.
Not only was it a failure to revive lagging sales, but public outrage was so vehement that the company was forced to backtrack and recall the product from the market. Sometimes things just don’t work out the way they’re supposed to.
You have to be comfortable with your corporate and individual levels of risk when making a decision and taking action. How much risk and how much failure costs you, both in fiscal and emotional terms, is a uniquely personal decision, suited to your circumstances and your predilections. It’s also likely a varying level, too; some decisions are more critical to success and the perceptions of success than others, and will likely cause you more pause than the small decisions we make day-to-day.
In the end, success and failure hinge on the smallest of factors at times, and the temptation is to slow down the decision making process to ensure that nothing’s left to chance.
Go too slowly, however, and you’ve become the captain of a rudderless ship, left aimlessly to float, with decisions never coming, or coming far too late to meet the needs of the market, much less be innovative. Collect the information, work with your team to figure out what it means, and answer the third question of the series (the “what”) by taking action.
Managing bipolar disorder and what I wish my employers understood
(EDITORIAL) This editorial offers a perspective on living with bipolar disorder in the workplace, giving employers insight into how to support similar team members.
I met Jacob Martinez (Jake) a few years back at one of our offline events. He is an eager and ambitious person that always wears a smile (and seriously, it’s an infectious smile), always seeks to help people around him, and is kind and positive at every interaction.
In his most current effort to help others, Jake asked what I thought about his writing about his new bipolar disorder diagnosis, something that most people hide and pray no one discovers. But not Jake. As he dug deeper into the rabbit hole of available information, he realized there was little available discussing how this diagnosis impacts career paths, and almost nothing available to help employers to understand the nuances.
And let’s face it – there are plenty of people hiding their diagnosis, and employers that could be missing amazing talent simply for not understanding how to accommodate.
The following is about Jake’s journey with his diagnosis, how it has impacted his career, and his ideas on how hiring managers and business owners could interact with people living with bipolar disorder in a way that keeps their talents in full use on the job. This isn’t scientific and the suggestions aren’t based on some HR seminar, no, it’s meant to give you unique insight that most people don’t share – I want you to read this through Jake’s eyes. It’s a brave look into working with this challenge:
As someone who suffers from bipolar disorder, I’ve struggled to find resources that would help individuals like myself jumpstart our careers and learn to navigate working full time with a mental health disorder. Most generalized stories about mental health disorders and the workplace focus more on how things didn’t work out and not on how they started or advanced their careers.
Many give examples of individuals with mental disorders in high-ranking positions who end up leaving their specialized field to work as part-time cashiers or other less stressful and less triggering roles in order to seek a better work environment for their mental health.
I’ve also found that there is a lack of resources for employers when it comes to helping employees with mental disorders. Not many employers are prepared to do so, nor have this skill in their wheelhouse. Without this knowledge, training, and experience, how could they understand the struggles of what it’s like to work with a mental disorder and be expected to provide the necessary support to help their staff?
Many factors contribute to this being overlooked or left unaddressed, such as the stigma behind people with mental disorders in a work environment, or simply because no one knows how to talk about it. When I apply for jobs, I always ask myself “Do I put in an application that I am someone with a condition that needs reasonable accommodations? Is that even an option?” How would I even begin to ask an employer to understand what I am going through? And while I’m still figuring this out and working through what my diagnosis means for my career, I’d like to share my experience and start talking about it.
Like many young individuals, I started college bright-eyed and with a hopeful outlook. I navigated internships, jobs, and full course loads but only to exit with a mountain of debt and depression that can be best described in a meme. Many, with no prospects out of university and an average GPA, end up working menial jobs to get by, hoping for their big break.
For me, this time was spent at Torchy’s Tacos, a local Austin Texas favorite. My luck finally came through when I found a new opportunity. I thought to myself, how hard could it be to deliver packages to people? Especially in a city like Austin where anyone could make a business out of cleaning cat litter boxes. This company, I thought, was going to be my lucky break – my jumping-off point. And it was for about a year. That is until my bipolar diagnosis came in.
Suddenly dealing with bipolar disorder…
I experienced sporadic shifts between depression and hypomania. With my diagnosis came a new understanding of what my limits and strengths were. I understood that stress only made it worse but that physically moving around was the best way to cope with it. Working in a warehouse-type environment allowed me to run around, helping to melt my stress away physically.
But when it came down to job performances, some weeks were better than others.
When I did well, management would make comments like, “I like this new you,” or “whatever is happening, don’t change it.” But nothing was said when I didn’t do so well. Comments continued to dismiss the real issue that I was heading towards an uphill climb of mania. And as I climbed higher and higher, more mistakes began to happen – small ones that added up beyond anything I could control. With each and every episode of mania or depression I had, the trust I had taken time to build and cultivate slowly began to fall apart.
Then came the drop – an episode of depression so deep that it’s hard to recover from. For myself, this began as a result of multiple episodes and when several “options” were laid out on the table by my employer.
First, my employer recommended that I take Family Medical Leave Assistance (FMLA). For someone like myself who never knew what FMLA was, I didn’t know where to start and what this meant. No one told me I would not be getting paid and that I would have to use my sick and personal time off to supplement my income. As someone who has built their identity around working, taking time off felt like an attack on my identity at the time.
Subsequently, I was also told I could be released for making any mistake (no matter how small or slight), attempting to change the work culture, or requesting anything unreasonable such as requesting time off for anything other than medical. My manager also called my episodic shifts a “stunt.”
Every time he said this, I lost faith in him, and he lost trust in me.
Some of the hardest words someone with a mental disorder can hear from a manager or mentor are, “When you pulled that stunt, I can’t trust you anymore” and “we will no longer be working together if you do that again.” His words cut deep and only made each episode worse—finally leading me to turn in my two-week notice.
During my time there, none of my managers ever asked if something was wrong when warning signs showed up. They just assumed that I had already checked out and given up. I felt like a cog that was replaceable and could easily be overturned. Trust was required to help me battle my mental demons, and in this case, that trust was broken on both ends. No one came out of this on top, coping skills were not utilized as they should have, and no one reached out like they said they would.
After reflecting on this experience, here’s what I’ve learned and wished my employer did:
Trust: Trust is earned, not given as the adage goes. But for an employee living with bipolar disorder, trust is given before it is earned. I made the choice to trust my employer (and my entire team) by opening up about my mental health and battles – I had to. And while not everyone may be prepared to open up about what they’re dealing with internally, it can help.
Doing this tells people that you’re asking for help and are making yourself ready to receive it. It signifies your willingness to allow others inside. This can be beneficial to you as it helps your team members become better at recognizing warning signs and understand when to check in to see if you need help. My recommendation here to anyone working with someone who has a mental disorder: Listen if we choose to open up, don’t be dismissive of our efforts, and trust us when we ask to carry more for the team.
Don’t assume: Someone opening up about a diagnosis can’t expect everyone at work to have a background in psychology or psychiatry and to understand when comments like “I like this new manic you” are harmful and dismissive.
Not everyone is going to be interested in researching and learning how best to help a team member who is dealing with a mental health disorder. So, don’t assume that they know.
What would have helped me and maybe changed my situation would have been to be more honest and direct about my specific needs upfront. For employers, try to also understand our needs and limits with stress. Ask your employees directly what they need from you in order to make them feel more comfortable. Another way of tackling this would be to ask your employee about some of the coping strategies they are learning in group therapy sessions. If you know your employee is going to group therapy, if you feel comfortable with it, check in with them and encourage them to keep up with those sessions. When assigning unique projects or extra tasks, it’s also helpful to explain what you are asking and offer employees the best ways to achieve it.
Ask for and give reasonable accommodations: In my case, I eventually learned that taking time off was not an ‘attack on my identity’ as I had previously felt. I learned to accept it as part of living with bipolar disorder and know when to ask for it. Pushing for myself was empowering and was the best thing that could happen in that given moment.
So, if you’re someone who struggles with bipolar or other depressive mental health disorders, the best thing you can do to help yourself, while building courage and confidence, is to speak up and be your own advocate. Ask for accommodations.
For employers with a team member struggling with a mental disorder, when it comes to giving that team member time to themselves, it should never be a fight or argument. Change the schedule, do what you can to make accommodations, and support someone who needs time away for treatment.
Give helpful feedback: In my experience, my previous employer either avoided giving me feedback completely or made dismissive comments like, “I don’t know what the hell happened…”, followed by something positive. Like many others who suffer from bipolar disorder, ineffective and unclear communication can easily lead us to spiral from misinterpreting details and having self-doubt.
I would have benefitted from receiving clear and specific feedback, whether that was immediately after a mistake or as a conversation during team lunch. This small amount of open dialogue could have allowed us as a team to resolve conflicts, improve teamwork, help me build my self-esteem, and improve my performance.
Show appreciation and have open dialogues: What is equally important for employers to do is to let us know that you are paying attention to and appreciate our efforts, regardless of how small or large of a task we complete. In a warehouse, things are extremely routine, but it doesn’t take a lot to thank someone for trying.
A few small words and gestures could have been really helpful in breaking me out of a depressive funk or a manic episode and can certainly help someone else in the future.
Practice mindfulness: At this moment, let’s check in with our emotions. In Dialectical Behavioral Therapy (DBT Therapy), some of the questions they ask are about checking in with your emotions and your thoughts. Are you in control of your thoughts or are they in control of you? Are we still in touch with our emotions? Perhaps we are cross at ourselves for playing the victim to our mind’s frustrations?
When it comes to mental disorders, employers need to be more understanding of what their employees are going through. However, we as individuals should also be able to look inwards and see what we are feeling. Core mindfulness is a skill to develop no matter what position you work in or what you’re dealing with. Mindfulness teaches awareness of thoughts and feelings, the focus on the here and now.
From my experience, learning to control my thoughts and emotions is an effective way of dealing with my bipolar disorder. While it took time to discover, I learned that my mindfulness practice was running around the warehouse and moving. This allowed thoughts to flow in and out of my mind without having to give them any power over me. Knowing this made me feel stronger and clearer. Finding a mindfulness practice to help you cope takes time and experimenting – so try different things and figure out what works for you.
Ask for help: If you’re struggling with a mental disorder at work, there is nothing wrong with asking for help. That help may look differently for everyone, be it talk therapy, telling a co-worker, or taking time off. Either way, sometimes the best way to help yourself is to start asking for help. If you’re someone who has a co-worker struggling with a mental disorder, pay attention and reach out to them if they need help.
While I’m still learning to navigate my bipolar disorder, this experience has taught me (and hopefully others) some helpful lessons. I have learned to manage it better and am continuing to advance in my career path.
My hope is that companies make a more concerted effort to improve their training on mental health disorders in the workplace. I also hope that by sharing my story, I can help others with bipolar disorder to excel at work.
How to ask your manager for better work equipment
(EDITORIAL) Old computer slowing you down? Does it make a simple job harder? Here’s how to make a case to your manager for new equipment to improve your productivity.
What is an employee to do when the work equipment bites.
Let’s be frank, working on old, crappy computers with inefficient applications can make the easiest tasks a chore. Yet, what do you do? You know you need better equipment to do your job efficiently, but how to ask the boss without looking like a whiner who wants to blow the department budget.
In her “Ask A Manager” column, Alison Green says an employee should ask for better equipment if it is needed. For example, the employee in her column has to attend meetings, but has no laptop and has to take a ton of notes and then transcribe them. Green says, it’s important to make the case for the benefits of having newer or updated equipment.
The key is showing a ROI. If you know a specific computer would be a decent upgrade, give your supervisor the specific model and cost, along with the expected outcomes.
In addition, it may be worth talking to someone from the IT department to see what options might be available – if you’re in a larger company.
IT professionals who commented on Green’s column made a few suggestions. Often because organizations have contracts with specific computer companies or suppliers, talking with IT about what is needed to get the job done and what options are available might make it easier to ask a manager, by saying, “I need a new computer and IT says there are a few options. Here are my three preferences.” A boss is more likely to be receptive and discuss options.
If the budget doesn’t allow for brand new equipment, there might be the option to upgrade the RAM, for example. In a “Workplace” discussion on StackExchange.com an employee explained the boss thinks if you keep a computer clean – no added applications – and maintained it will perform for years. Respondents said, it’s important to make clear the cost-benefit of purchasing updated equipment. Completing a ROI analysis to show how much more efficiently with the work be done may also be useful. Also, explaining to a boss how much might be saved in repair costs could also help an employee get the point across.
Managers may want to take note because, according to results of a Gallup survey, when employees are asked to meet a goal but not given the necessary equipment, credibility is lost.
Gallup says that workgroups that have the most effectively managed materials and equipment tend to have better customer engagement, higher productivity, better safety records and employees that are less likely to jump ship than their peers.
And, no surprise, if a boss presents equipment and says: “Here’s what you get. Deal with it,” employees are less likely to be engaged and pleased than those employees who have a supervisor who provides some improvements and goes to bat to get better equipment when needed.
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