So I've been seeing an increase in orders that require adjustments be made. I hate doing adjustments, resist it whenever possible, and don't work with some companies that require them to be extensive.

I dislike them in part because they are more work, but mostly because my adjustments are arbitrary. I don't like being asked to put a value on something, like an extra bath or more square feet, without being able to properly support it. I'm not an appraiser, its not an appraisal, and my adjustments are nothing more then an educated, half-hearted guess.

And further, a few companies want adjustments but also want the comps to still bracket the subject's value. So they want you to adjust part of the value, not all of it. Its just a stupid waste of time.

I've told companies in the past I don't do adjustments, and usually they've been fine with that, but lately many are pushing back and requiring them.

How do you all feel about adjustments? Am I being unreasonable? Have you had any success in refusing to do them?

I can only speak for myself, but aren’t adjustments part of finding value? When I first became a realtor, my broker taught me how to plus and minus out property. Every CMA that I do for a regular residential listing is based on adjustments. Every CMA I do for a REO listing is based on adjustments. Adjustments are part of what I do. Doesn’t every amenity, either interior or exterior, have value? I’ve raised a lot of questions; I guess I take for granted what troubles you most. I feel my knowledge of real estate would be greatly diminished if I refused to learn this basic building block of my trade.

I couldnt have said it better myself. I dont break it downto the the cent. I can look at two houses with several differences and determine value between both of them within a few seconds. If I really sat down and thought about it, I could break it down even more, but whats the point? If you cant/wont make adjustments, maybe bpos arent your thing?

I have never received an adjustment request from any BPO company. But if I did, I would comply, remember they are the client.

LOL, I had to laugh out loud reading the posts. We are realtors right? Or did I miss something, refusing to do an adjustment is like refusing to give you the keys to the new car you just purchased. What is the client to do if they can't drive the car. What did you pay the salesman for? What are we getting paid to do whether your client is a retail client or an REO client we are advising them and justifying our recommendation for the value so that we can effectively market their real estate! That means we need to make adjustments; if they are written down or not we need to explain them away so the client can understand it. So in REO whether for a BPO or an REO listing you must be able to put a dollar value on the adjustment. Take a class in BPO completion and they will teach how to do this. Or as you have already done you can refuse the business but then I would suggest you understand that you have may have limited your earning potential as it will be noted you are refusing to comply. And the REO world is smaller than you know AM move from company to company.

If one of my team members were working on a BPO for a BPO house or for one of my REO clients and refused to do anything that my client asks, I would have to have a serious talk with them. But one of the wonderful things about working for ourselces if we aren't part of a team is that we have the right to make a business decision that meets our style regardless of the final outcome good or derogatory. Just a thought.

How can you fill out a Freddie Mac bpo form without making adjustments? I have many clients requesting Freddie Mac bpos. One house has a garage...one house doesn't have a garage; one house has 1 bath, one house has 2 baths; one house has pool, one house has no pool; one house has 3 bedrooms, one house has 4 bedrooms. Wouldn't you think some adjustments were necessary?

I agree with Grexley.I have been a realtor for 30 years. Adjustments are arbitrary. I do BPOs for a local attorney who handles divorces.Sometimes I am called to testify to the value of the property.Often there is a difference of opinion as to the value of the house in the divorce. If I used adjustments, the opposing attorney would ask me on what those adjustments are based.I could not substantiate them.I also do regular BPOs and do make adjustments.

It's tough to dismiss this question the way some people are, because many companies are not allowing adjustments on forms by non-appraisers. I am noticing that it must be client specific for some of these companies because some kick back from QC as needing adjustments inputted and others do not.

Of course we are real estate agents and need to understand and be able to apply adjustments to comparables to find value, but if making adjustments potentially qualifies as a quasi-appraisal is that worth it?

I normally avoid making adjustments in the form, but notate certain things i.e. parking space is worth 12-15k, and then reflect this in the final value. It seems that most companies are not requiring adjustments to the forms.

On the same topic, are people using a certain sq/ft factor for all properties in their market. Have you adjusted this number over time or do you stay with a rule of thumb. I think BPO's are simply a raw opinion and should not be entertained as anything more, especially exteriors. Since I normally do not have full appraisal information, and never for comparables, I am using sq/ft numbers from tax records, which we know if often wrong. So when you are adjusting for square footage for instance, are you really making an educated adjustment...some companies probably realize that they are better off with the basics from the agent without them going to crazy on adjustments.

As long as the adjustments are consist through out the BPO and so long as you truly know your market what difference does it make? For example, a 3/2 in my area is the norm, a 3/2 1/2 is not. Depending on where that 1/2 is located it may or may not add value, typically it does not though and I don't adjust for that (value neutral). I do adjust for "other", that other being lay-out/floor plan for me. It helps that I've been in a number of properties over the years and generally recognize certain builders (even though I don't know them by name - I haven't been here long enough to do that yet) and know their floor plans. Some work others don't, that's functional obsolescence in my mind and I adjust for that. Swimming pools here don't automatically add value either but in some circumstances, a spa/hot tub does. Outdoor kitchen/living spaces do.

You know what they say, real estate is local. I think we intuitively know and make adjustments but are hesitant to put those adjustments to paper, in this line of work you've got to get over that "fear" and just do it. It's an opinion, based on your experience with the local community and your ability to correctly analyze market trends.

Here's another thread from a couple of months ago discussing Adjustments.

Other Ajustment Thread

If you don't make adjustments, then how do you value compare homes with different GLA, bathroom count, garage size etc? Not to mention, you may need to use homes as sold comparables from inferior/superior neighborhoods due to slow sales activity like in my market.

I have searched and searched and I simply cannot find a single case where an agent has been sued or even called into court over a BPO. I have googled for hours looking for even one instance and cannot find one. That doesn't mean one should be unprofessional in the completion of an order, as you have an ethical responsibity to do so. To not make adjustments for the fear of being sued is extereme in my humble opinion.

I very much agree with Brad, the most basic tool that Realtors develop..CMA's..for listing purposes..should include adjustments for amenities, pools, beds, baths, lot size location etc to be of any value to a seller in determining pricing.

Why is it suddenly wrong for a Realtor to apply these same adjustments to a BPO?

So, how does one determine the value for the adjustment in differences other than repairs i.e. bedrooms, fin vs unfinished basement etc?

Take Five Stars BPO Class, even though it's very basic and geared towards the beginner, it gives some good insight on determining price adjustments and when and how much based on differences in GLA and age, add't rooms, etc.