The BPO - Get Involved
Understand the general perspective of the agent conducting a BPO (Broker Price Opinion) and to taking as active a role in it as possible is suggested by most real estate coaches . A BPO Agent usually makes only $40-100 for each BPO the lender orders? Consider what a BPO agent must do for that type of pay – drive to property, spend 30-60 minutes inspecting it, take pictures, pulling comparable sales, compiling the data, arriving at an opinion of value and uploading to the third party company the bank hired to order the BPO. All of that for $40-100?
The reality is the BPO Agents do not make significant money if they have to spend other than minor time with one BPO. They have to rely on volume of as many BPO’s as possible to make relatively insignificant money. This doesn’t mean they all do not do a good job conducting one. In my opinion, BPO Agents are simply not motivated (translation=compensated) enough to spend the required time to produce an accurate value on the property every time. However this is where investors may have an opportunity to increase profits!
Most all gurus successful in Short Sales strongly recommend that you get involved in the BPO to the extent possible – pull comps (find the lowest three recent sales), have written CONTRACTOR estimates for repairs, have a copy of the Short Sale offer, and MEET THE BPO AGENT for the inspection and offer your research and copies of documents. If you can interject any conversation regarding the market – all the better.
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Comments (3)
As a bpo agent myself, i will accept the agent's comps that they pulled but will not use them in my report. We are supposed to give them our own opinion, per the bank's guidelines.
James, about 16 years ago
Great comment. Yes, many (or most) of the real estate coaches are teaching pushing your way into assisting the BPO agent. Determining early in the meeting the agents personality and willingness to even accept your paperwork should dictate your level of interaction with the agent. Being pushy with or being percieved as obnoxious by the agent has the prospect of backfiring. Having the paperwork (and specifically comparables) to influence in your interest; and if possible, light conversation about market conditions is more so my suggested approach. As in any business transaction, never be percieved as the pushy one and do not cross any lines.
Ted Akers, over 16 years ago
Getting "involved" in the BPO has a stopping point. People are being taught to push their way into assisting the agent. Most BPO agents do not want or need the help. By offering to give the agent paperwork that you feel is important is okay, but then back off. Let the agent do their job. You can always request a 2nd BPO or even pay for an appraisal if needed.
James Ward, over 16 years ago