Real Estate

BPO Flow for Real Estate Agents

RealEstateLife

I’ve been in real estate since May of 2016 and since June of 2017, I have completed 172 Broker Price Opinions.  I created a part time job out of BPOs and completed about 3-5 of them per week.  I loved the flexibility it allowed since I was a stay at home(ish) mother of a baby.  I worked twice a week as a ROI specialist and the rest of the days I put my real estate agent hat on while caring for my son.
For those of you who don’t know, a BPO is somewhat of an informal appraisal.  Asset Manager companies get notified by various banks on properties they need a value for.  These companies then contact you via email to let agents know when a BPO becomes available in their area.  You take a look at the address, the fee and either accept or decline the order.   Exterior BPOs only require exterior photos of the subject and usually pay about $40 a pop.  Interior BPOs require both exterior and interior photos and usually pay about $65 a pop.  Both types require you to run comps for recently sold comparables and current active comparables.
In the beginning, it would take me anywhere between 2-3 hours to complete a BPO but as most things in life, once you do enough of them, you become a ‘pro’.  I can usually complete a BPO within 60-90 minutes; making them very well worth it.  I became strategic and accepted as many close by orders as possible; or at least orders that were in the same towns.  I’d take my son with me on the car rides to take the photos and worked on the data entry portion at night once he was asleep.  You can even negotiate the fee if the order doesn’t get accepted by another agent.  I would sometimes make $100 or $120 per order if it was outside of my jurisdiction!
I definitely recommend completing BPOs for newer agents to help with running comps, knowing the market, and determining accurate values on homes.  I can’t tell you how much of a confident booster it is when you’re at a listing appointment and can tell the seller how you work closely with banks on providing values on homes and are a wiz at determining listing prices!
A few of my favorite asset manager companies are Proteck, AssetVal, Assurant Valuations and Solidifi.  Keep in mind, I’m in the New England area and companies definitely vary depending on your location.