Broker Price Opinion Guide and BPO Companies List
Broker Price Opinion or BPO for short is a valuation tool used by REO and Mortgage institutions. They aren’t like traditional home appraisals. Most bpos and done by a real estate agent. These valuation reports are generally done quickly and for less money, as apposed to a traditional appraisal. Most bpo companies are completing bpos for properties that are in default. So majority of the bpo work will be done to properties that are going through the Foreclosure or the Short Sale process. This does open the possibility for real estate agents to pick up reo listings. Possibly but not likely depending on the type of bpo company. Some BPO companies are refereed to BPO Mills, all they do is BPOs. Then you have REO Asset Management Companies, which deal with the listing and sale of reo homes.
Types of BPOs
Drive By BPO: This is the most common type of bpo. Exterior property photos are needed (usually front, address verification, side, back, and street views) each company will have its own guidelines. The idea is to get a general idea of properties condition and marketability. Because this is a drive by bpo agents aren’t encouraged to get out and walk around. Pictures and a quick observation can be done from the vehicle as long as you have an unobstructed view. Longer lens cameras will make you life easier when you need to zoom in for detailed shoots and address verification photos.
Interior BPO: Interior Broker Price Opinions require interior access. Bpo companies will provide agents with a point of contact. Sometimes the agent will need to do a little digging around and work around occupants schedules. This report will require exterior and interior photos. Most companies will ask for all living area photos. All rooms, bathrooms, and damage if any.
Commercial BPO: Most orders are done on residential properties, but agent that specialize in commercial real estate can request higher fees for commercial bpos.
After the photos are complete the agent will need to submit a bpo report online. The Bpo report will usually consist of detail subject property information from tax records with the addition of personal observations. Plus a list of similar properties that are currently listed and sold within close proximity. Most BPO Companies require at least 3 current listing and 3 resent sold comps. People Best Learn By Practice. Dont over think the process its actually very simple. Start by signing up with as many bpo companies as you can.
BPO COMPANY LIST
(This is one of larger bpo lists online so we broke it into section)