Real Estate Agents and Brokers can Earn More Money by completing BPO’s
A Broker Price Opinion is a specific type of real estate valuation product; the report estimates the value of the property based on location, size, amenities, condition, and age. Using these factors, a BPO then compares the subject property with 6 comparable properties, using 3 Recently Sold properties and 3 Actively Listed properties to determine the current market value of the subject. The BPO report is prepared by Brokers, Agents, and Appraisers, all of whom are licensed.
A BPO report can be ‘Exterior’ in nature (drive-by and viewed from the street) or, ‘Interior’ (an inspection of the interior of the home) The Client determines the type of BPO required based on their specific needs, placing the order with the BPO Provider company who in turn engage the Vendor.
In order for a Realtor to complete and provide BPO’s, you need to be registered with each company you want to work with. Below is the list of Broker Price Opinion companies that you can reference for registration sign-up. You will be asked to provide various documents, most likely an Errors and Omissions Insurance Policy. Usually, no fee is required for a vendor application.
Initially, the Realtor will need to research the subject property of the order. This includes verifying access to the property for viewing and photography. You will need to check for gated access, the position of the house on the lot, and whether a street view is possible. The following steps illustrate the process of creating an inspection and completing a BPO Report once you are ready to visit the property:
1. If the BPO is an Exterior (Drive-By) report, the Realtor begins by taking digital images of the subject property from the front, an image of both sides, the house number for address verification, the street sign, and the street, looking in both directions. Any factors in the neighborhood that might impact the value of the property are to also be documented such as boarded windows, vacant homes, overhead electrical towers, railroad tracks, commercial and/or business enterprises close by, across from a school, etc. Some Clients require an image of the property across the street from the subject.
For interior orders, the Realtor takes photos of all rooms and inspects the home for any interior damage. The condition of the subject property is based on the findings of the inspection made and the photos provided in the BPO Report.
2. The Subject information for data input is obtained from Tax and/or County Records. Then a search is engaged in to select 3 active and 3 sold comparable properties in the Subject neighborhood; strict BPO Standard Guidelines must be adhered to, using the BPOSG from the (MLS Multiple listing service).
3. Factors contributing to the estimated value provided in the Broker Price Opinion (BPO) report are as follows:
- Subject gross living square footage, lot size, the number of bedrooms and bathrooms, the year the home was built, the number of parking spaces and if they are covered or garaged. Other exterior features considered are if the property has a pool, spa, shed, outbuilding, fence, patio, outdoor entertainment area.
- Location of the property: Suburban, Urban, Rural, Waterfront, Oceanfront, Residential, Mountain or Hillside location. Views: City, Ocean, Mountain, Valley, Residential.
- The condition of the subject property is determined by what is discovered at the inspection. The usual ratings are calculated to industry standards which are very specific and designated by Code. Another rating used to classify a property condition is Excellent, Good, Average, Fair, and Poor. These are used to determine financing available and what programs might be used to purchase a specific property. Some reports are used to determine rehabilitation funds for repairs and rehabilitation based on specific government guidelines for loans they guarantee. Still, other BPOs are used to refinance an existing loan or obtain an Equity Line of Credit.
- Neighborhood: A notation is made as to the property conforming to and if it is typical to the immediate area. Considerations are Zoning designations and values in the neighborhood. Comparable properties listed & sold in the proximal area are then chosen based on the determinations made. This is a crucial aspect of the BPO report.
Broker Price Opinion Vendor Requirements
In order to provide BPO’s to Broker Price Opinion Companies, you will need to register with the above list of BPO companies and provide the following required documents.
- A valid Real Estate License. If you are an Agent you will need to also provide your Brokers’ State Broker’s License and the BPO Company will require their consent for your activities as a Vendor with their company.
- E&O Insurance Policy
- Latest W9 Form
- Background Check is required by most companies
Note: Signing up with BPO companies does not guarantee the approval of the account. It depends on your profile, service area, and availability of BPO assignments in Broker Price Opinion companies.
If you need a virtual assistant to signup to the above list of broker price opinion companies or Need help with BPO Data Entry Services.
Increasing Your BPO Order Volume
Increasing your orders’ pipeline from companies requires the Vendor to maintain a good score and an excellent rating with the Broker Price Opinion companies. Scores are tallied monthly; your score is compared with other Vendors to determine the volume of assignments you receive. The higher the score you maintain compared to other Vendors in your area, the more BPO orders you are assigned on a monthly basis. To keep a good score with BPO companies you must:
- Only accept orders that you can complete in the time frame allotted.
- Never accept a Rush Order you are not certain you can meet the deadline on.
- Submit all orders within the due date time frame. You can increase your rating by submitting an order in less time than allocated, however, do not reduce the time for submitting an order at the expense of the quality of your work. Quality will always trump an early submission.
- Returns from the BPO companies and clients should be kept at a minimum.
- Avoid having orders Reassigned due to missing deadlines or poor quality of your work product
- Failing Quality Control (QC) should be kept at a minimum. Any corrections asked for should be submitted within 4 hours (for some companies); within 24 hours for others.