BPO is the acronym for Broker's Price Opinion, a term that refers to an evaluation report of a residential property that is usually conducted by a local, licensed real estate professional. The report combines information from a drive-by exterior examination, external data sources, previous sale data, property assessment data, recent comparable sales and current neighborhood listings, as well as a photograph of the subject property.
I have a newfound true respect for a well prepared BPO and having done a ton of them when I was a Realtor looking to break into REOs, I also have a real respect for the Agent that takes the time to prepare a good thorough well documented report.
The BPOs you provide have a significant impact on the value at which REO lenders market their property. Every effort should be made to provide accurate and detailed information in your evaluation of a property and its local market.
The Sales Specialists expect each and every Broker Price Opinion they receive to include narrative comments related to local market conditions; the subject location; property habitability comments; marketing recommendations; broker's conclusion of 90-120 day suggested list and sale price; descriptive data on the advantages/disadvantages of the subject property condition and immediate neighborhood characteristics; additional comments that include sales trends and recent sales prices of similar properties; property images; as well as an analysis of three current listings and three of the most recent sales of comparable properties.
Final analysis of all this applicable data results in the ability of the Sales Specialist, to determine a suggested list and sales price on the Client's asset.
Preparing a good BPO could get your foot in the door of an REO and can definitely keep it there once you've arrived. Check out these resources to sharpen your skills-
- Agent's looking for a Free step-by-step on doing BPOs, check out Dan Waterman's Universal REO blog's Performing a Broker Price Opinion (BPO): Step 1
- First American Residential Value View offers training and certification. They have an excellent BPO manual that serves as an invaluable resource.
- Increase your BPO credibility by obtaining NABPOP BPO Certification. Learn the complete BPO process in detail.
- Five Star Institute offers an online BPO certification course. This one-day course is presented in a fast-paced, advanced format, showing you how to correct common errors using practical case studies.
Agent's looking to really step up their game should plan on attending this year's Five Star Conference in Dallas...more on that in my next post.
Than you Mykel....we do lots of short sales...can just never have tooo much information. Our last one had over 400 pages...one would think that was toooo much information...the lender did not...urgh ! Thank YOU !
I have also found a great list of bpo companies, www.insider-reports.com
I just got my first order a few days ago and can't wait for more.
Thank you Eric and Jan for sharing those links with us and Congratulations Jan on your first order!
Have you ever done bpo's for BusinessWiseBPO.com? They offer a bonus for on time work and you can sign up to get orders 2 hours in advance of others. It's a cool concept.
www.BusinessWisebpo.com
Check it out!
John.