Doing BPO's
I have been reading the Bigger Pockets Forum for a few days straight and have found that the best way for me to get my "foot in the door" with REO's is to start doing BPO's.
Give me the address, and I can give you comps and a price range in all areas of my City. I understand that a BPO is a Broker Price OPINION. Thats the part where my question comes (Opinion)! I see that relationships are everything in this business and if I am offered to do a BPO I don't want to screw it up. Also, when I approach Asset Managers I don't want to sound like a total newbie so...here I am.
Can someone who has experience doing BPO's give me a brief rundown of the process. I imagine it is a lot like doing comps?
When I have a buyer for a particular property I always have a PRICE that I state it should be bought for. I can take my CMA's to the seller and use those FACTS to negotiate to the right price.
That being said... in todays market, asking prices still seem a little inflated in most homes that are listed on the MLS. Any experienced agent knows that Asking Price does not reflect Market Price, instead its the CLOSED SALES, and EXPIRED LISTINGS that are more of an indicator.
Does the bank like the BPO to reflect the TRUE Market Value, or are they looking for more of an "inflated price"? I saw on 1 post that the bank usually offers the Listing to whomever has a higher BPO, but I would rather be Accurate, as opposed to complient.
Any discussion on this issue would be greatly appreciated!