Broker Price Opinions

Brokers Price Opinion

A Broker Price Opinion (BPO) is an estimate of value for a property (real estate asset)owned by the bank. These properties are commonly referred to as a Real Estate Owned (REO) Properties. They are properties obtained due to foreclosure, or deed in lieu of foreclosure, or a short sale.

An abundance of distressed properties in the market has opened opportunities for real estate professionals to do BPO’s for an additional income.

A lender may hire a real estate professional to perform a BPO to help determine the selling price of the property since the licensee typically has knowledge of the local market.

The licensee will be asked to take photos of the property and complete a BPO report provided by the lender.

The report includes a neighborhood analysis of comparable properties along with local regional market information.

Factors that will affect the price of the property in a BPO report are the values of similar surrounding properties, sales trends in the neighborhood, and the amount of repair needed to put the property up for sale.

BPOs are less thorough than an appraisal but require more analysis than Comparative market analysis.

Anyone, who holds an active broker, sales associate, or an appraisal license in the state may prepare a BPO. The preparer is entitled to receive compensation or a fee for the BPO.

With the unprecedented amount of distressed properties in the market place over the past few years, BPOs can be a viable source of income for you. To ensure a steady source of BPO orders, you might be best served by having an established relationship with the bank asset manager, the outsourcer, or a BPO company.

The outsourcer is an asset management company that handles the entire process from the time it is assigned to a broker to the sale. Many lenders choose not to handle the asset themselves so they turn it over to an outsourcer for handling

Required Documents for Broker price opinion sign up

  • Real Estate Licence Copy
  • E&O insurance
  • W9 Form
  • Updated resume
  • General liability insurance copy
  • Digital signature
  • MLS ID
  • We also need an email id along with a password that will be used for registrations
  • Excel sheet that will be sent for additional information required by the companies
  • Prepaid fee

Highly Accurate Broker Price Opinions

Data Entry

Broker price opinion companies expect brokers to complete BPO orders on time and with accuracy. It is very important to keep up the scores to receive continuous BPO Work.

If the scores go low then you lose BPO Volumes. Broker price opinion data entry team understands real estate BPOs and ensures smooth processing of all BPO orders. BPOs are filled accurately in the respective BPO company forms.

BPO data entry virtual assistants pay attention to detail by not missing any key property characteristics of the subject and comparable’s that can influence the value of a BPO. These include swimming pool, garage, fence, etc. as they play a vital role in BPO valuations.

MLS Research and Analysis

MLS Research and analysis team is a special squad with experience in US real estate and mortgage. This task is considered crucial for preparing a BPOs as comparable’s selection process plays a vital role to arrive at the accurate values of the given subject property.

We follow the sales comparison approach and all guidelines laid out by BPOSG and NABPOP. The sales comparison approach also referred to as the comparable sales approach is used to estimate the value indicated by the recent sales of comparable properties in the market. The sale comparison approach requires an active market where sales have occurred. We also try to use a matched pair technique (Or paired) sales technique and square footage technique.

A good comparative property should be as similar as possible to the subject property, the one that we are valuing. Areas of similarity include:

  • Square Footage
  • Garage
  • Age
  • Improvements
  • Physical Condition
  • No of rooms
  • Style
  • Amenities
  • Design
  • Location
  • Pool
  • Lot Size

In certain case scenarios where there is a difference between a subject property and the selected comparable’s necessary adjustments are required. Depending on circumstances, we might need to make any or all of several other adjustments. Some are listed below.

  • Condition of sale
  • Market conditions
  • Location
  • Physical characteristics

In the end, we reconcile the adjusted sales prices. Experience and judgment are used to weigh the adjusted sales price of each comparable property to infer an estimate of value for the subject.

BPO Process Flow

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