BiggerPockets

BPO = broker price opinion

BPO's are done before a property is listed and help the seller (the bank) decide what the property should be listed at..

Most sellers get two BPO's done or with every BPO they get an automated appraisal or a real appraisal just to verify the agent is too far off base with the price.

Typically agents will not disclose what there BPO is and you probably will not sway their value.

To build off what James said, include the request for an "interior BPO" on your fax cover sheet and every time you call, mention that you requested an interior BPO.

Hi Joe,

If you are referring to BPO's on short sale investing (buy and resell immediately or buy and hold) as opposed to making offers on short sales in your local MLS, then here is what you do:

Make sure you are the only person that the bank has for a contact for the BPO. I buy my properties in an LLC (for many reasons and I assume you do to), so if I get a call for a BPO, they are not aware they are talking to the actual buyer.

I do not list my properties for a flip until after the BPO is done and currently in my market, not until I am close to bank approval. This prevents the BPO agent form contacting the listing agent instead of me. I also do not put a lockbox on until after BPO as well and let my seller know that if they happen to get a call from anyone that wants to see the house, have them call me.

When you schedule the BPO, always show up, make sure homeowner will be gone, play the roll of property manager, give them realistic but lower end comps, the hardship letter, a list of known repairs needed, and a copy of the offer page of the purchase contract. This is called ethically influencing the BPO. Do not try to push this information on them, but strike up casual conversation and tell them you were asked to give this to them. Some will take it, others will hardly talk to you. If they won't take anything, at least point out the known repair issues.

Also, they want to be in and out and get on with the day so do not get in their way or talk TOO much. I always prefer phone conversation as so much can get lost in translation in email or posting. PM if you would like to speak directly on the phone and I will be glad to share more tips with you.

Most properties taken back or in the process of being taken back by the larger banks will be given to asset management companies for the BPO process.

If you've made an offer on a publicly listed property chances are at least one BPO has already been done. Alot of the asset managers have several BPO's done to confirm pricing, especially when they receive credible offers.

To answer your initial question: Regardless of where they are in that process, if you know the name of the asset management company handling the short sale you can simply call the manager and ask if they will be doing another BPO in response to your offer. They are under no obligation to give you an answer, tell you a date, or the number at which they arrive. Don't be surprised if they don't even call you back. The larger asset management companies are managing thousands of properties.

If they do counter your offer higher, however, you can almost guarantee that the number at which they counter was the most recently turned in BPO assessment.

Thanks for all the replies. First off, I am much more of a neophyte than you guys think. Many of your responses "buzzed right by me" so let me fill in some of the blanks. I am looking for my first investment property. The short sale in question has been on the maket for 200 days and started at $425K and is now at $350K. The property is listed on the MLS and I am working with an agent. We are planning to make an offer soon, what are my next steps?

Originally posted by IDEALProperty

Nothing worse than a BPO coming in at $200K on a property that NOBODY will purchase for more than $180K, especially if you are buying as an investor.

What do you do in this situation? I have heard that when nobody meets the BPO agent or doesn't know what the BPO package should include, the BPO ends up coming back too high. Do you request another BPO? I would guess that providing comps showing that the price is too high should work.

Thanks for all the replies. First off, I am much more of a neophyte than you guys think. Many of your responses "buzzed right by me" so let me fill in some of the blanks. I am looking for my first investment property. The short sale in question has been on the maket for 200 days and started at $425K and is now at $350K. The property is listed on the MLS and I am working with an agent. We are planning to make an offer soon, what are my next steps?

Ae you flipping the property or buying to hold?

Colleague and PM me and I will be happy to break it down for you over the phone. I want all to see my tips but I want to make sure you don't waste any time.