Charging for BOV
I normally don’t charge for a broker opinion of value since I believe that for every broker that charges there are 10 that will gladly do it for free in hopes to win an assignment. I got a call from a probate attorney I am working with on  another transaction who asked me to do 3 BOV’s for his clients who have to to sell one of the Propertys and need to decide which one makes the most sense. I feel like telling him that I have a fee for the service that is waived/credited if they choose to hire me as the broker. I am just conscerned if I do it once for him and let it happen without either a fee or a listing he will keep coming every time he needs to get a value for a probate property and I don’t want to waste my time. If I was talking directly to the owners I would have a better sense from talking to them and would be able to make a calculated decision. Do I five in and hope for some future business out of this? Or protect myself from wasting my time? Interested in your opinions on the matter. Thank you!
[{"id": "fk3agux", "text": "\u201cfee is waived if hired\u201d makes a lot of sense. It shouldn\u2019t be a crushing dollar figure plus attorney \nwill invoice his clients or have them pay direct.", "replies": [{"id": "fk3wesy", "text": "In this situation I've charged about $500 per BOV then credit that against commission if they hire me to sell it. They're expecting to pay and the fact they'd save that money back if they hire you gives you an advantage if you're competing. And you're right: if you do it for free that attorney will ask you often or do it knowing others charge. He's damn sure not going to do something for free. He won't expect you to either unless you offer it.", "replies": [], "depth": 2}], "depth": 1}, {"id": "fk3bx2o", "text": "Well just giving a solid estimate will ensure that the property owner or attorney use you to liquidate the asset. As an example, they get three opinions of value, yours is the most detailed, realistic, highest, etc. they\u2019ll probably choose you.", "replies": [{"id": "fk3ojs6", "text": "issue is there is a major difference between realistic and highest. You have to strike the right balance.", "replies": [], "depth": 2}], "depth": 1}, {"id": "fk3yhxz", "text": "State in advance that you charge a fee and then will credit back for the cost of one or more if they use your other services. Don\u2019t work completely for free or people will eventually abuse that. Charge a fair price for good service.", "replies": [], "depth": 1}, {"id": "fk46239", "text": "If he has no plans of listing it with you then charge him. If it leads to an assignment credit him the fee. I usually charge $1,000-$1,500 per. I\u2019ve done BOVs where owners just wanted something for their books and they accepted the fee. \n\nIf you feel he is just going to keep coming back because it\u2019s free and he will never list anything with you get out in front of him sooner than later. Otherwise if you don\u2019t charge him now and decide to later he will say \u201cbut you didn\u2019t charge me last time\u201d", "replies": [], "depth": 1}, {"id": "fk46ac3", "text": "The attorney told me they are hiring me but they need this first. I\u2019m only conscerned because I\u2019m not hearing it from the horses mouth. Maybe they won\u2019t like me? My process? My 6% fee? The last probate deal I took on I am not getting paid on due to foreclosure and it was a lot of work so I would not do it for less and to be honest I want to charge a retainer but no one is doing that in nyc.", "replies": [], "depth": 1}, {"id": "fk4bk7h", "text": "Most lawyers are also licensed brokers. They need a third party due diligence give them a fair value.  You charge them a fee and tell them you are interested in listing the property as well,", "replies": [], "depth": 1}, {"id": "fkg2h1l", "text": "Don't just do a BOV - ask the attorney to connect with their client to better understand what they're looking to accomplish.\n\nFor example - If they want to keep the property that's going to be the easiest to lease - that might not be the most expensive.\n\nDon't just add value by completing the BOV but providing investor insights based on their needs.\n\nI'm near certain other brokers wouldn't offer this so you can charge \"an above market rate\" because it's not simply a BOV. \n\nYes to waiving the fee if you're hired.", "replies": [], "depth": 1}, {"id": "fkj3llw", "text": "Would love to do that and will try but I\u2019m not sure he will give me that opportunity until after the bov.", "replies": [], "depth": 1}]