What is a BPO?
BPO is short for Brokers Price Opinion, it is the practice of estimating the value
of property or real estate. A BPO is usually 2-3 pages long and includes critical
information regarding the subject property, competing properties, and comparable
sales within the subject properties area by driving by the home. It is a Second
Opinion of Value, or a simpler version of a CMA (Comparative Market Analysis). Any
Licensed Real Estate Agent, Broker or Appraiser can perform BPO Services!
What is a REO?
REO is short for Real Estate Owned, essentially it is when banks foreclose on properties
they have to take back, because mortgage payments haven't been made. The bank takes
back ownership of the property to resell the property in an attempt to recover it's
investment. Banks will use local real estate agents to list and sell the property
for the bank.
Who can perform Broker Price Opinions?
- An active Licensed Real Estate Agent who has their license under a Broker.
- A Real Estate Broker with an active Broker's License.
- A licensed Appraiser.
Do I have to be a Broker?
No, a licensed real estate salesperson qualifies to perform a BPO. Real Estate Agents,
Real Estate Brokers, and Appraisers qualify to perform a BPO.
Why do Banks request BPO's?
Because BPO's are CHEAPER than Appraisals! A BPO is the Best and Cheapest way a
bank can make a financial decision on subject properties. With Foreclosures at an
ALL TIME HIGH Banks need BPO Agents Now More Than Ever, so they can liquidate assets
quickly and efficiently.
How much does it cost me to do BPO's?
A onetime fee of $29.95 for our BPO Power Package.
What "Exactly" do I need to do BPO's?
You need to purchase the BPO Power package which will provide you with all of the
information necessary to start doing BPO's Immediately. We have strategically Developed
our BPO Package toolkit that has confidential Information and tools needed.
- You Will Have To Provide A List of References On Your Vendor Application
- You will have to complete a 1099 for each BPO Company or Bank
- Your Real Estate License Info
- The Area(s) You Are Willing to Cover by Zip Codes
- Errors and Omissions Insurance
- List of BPO Service Companies and Bank's Loss Mitigation Department Contact Info
(We Provide this to you...YOU WILL NOT Find this through Banks, no one wants you
to have this information, because it would create mass amounts of solicitations
for services other than BPO's to these companies)
How do I get paid and go about receiving checks from BPO Companies?
For Real Estate Agents: In some states you will need to receive your checks from
BPO companies through your employing Broker and in other states you can receive
your check directly to your home office. It is always a good idea to check with
your association about the laws in your state.
We would suggest finding a broker that lets you get paid directly to you and lets
you keep 100% of your BPO money.
TIP: When the company applications ask for your company name and the tax
id #, you may put your name and your social security number here if you are having
the checks mailed directly to you and not your broker. Please check with your state
or your broker to see if you need to be paid through your broker from BPO Companies.
There have been Real Estate Professionals that have received work as early as day
3, but typically it takes a good 2 weeks to a month (results may vary).
You can start receiving BPOs as soon as you sign up with the companies I am going
to give you. All you will need to send the companies are a copy of your Real Estate
License, a W-9 form that you can download and fax back, and the address of where
you want your checks to go.
What do I need to get started?
A digital camera that enables you to download your photos and an up to date computer
with high speed internet.
What kind of money can you make weekly?
You can realistically earn $1,500 - $2,500 per week or more doing Broker Price Opinions
once you get established with some companies.
Can I do this in my state?
You can do Broker Price Opinions in any state. Each state is different and rules
can change without our knowledge, so to be sure, contact the Real Estate Board in
your state.
Who do I contact in order to find out if the broker gets the paycheck or I can have
the companies send it directly to my home?
I am on 100% commission. I own my own Brokerage firm with field reps that have enabled
me to perform multiple BPO’s on a daily basis. Checks are sent directly to my home.
On most of the company forms you can tell them where you want your check sent. Again,
check with your Broker to see if they mind you performing BPOs. There are instances
where Real Estate Agents have needed to change brokers in order to find a Broker
who will allow your perform BPOs and keep 100% of your BPO money.
Is there liability as a Real Estate Professional for doing BPOs? Can you get sued?
Most of the companies have statements on their forms that you check off stating
that the BPO is an "Opinion of Value", it is not an appraisal. The banks know it
is not a full appraisal.
Keep in mind that you have E & O insurance coverage if you are a Broker or under
a Broker.
If you want to protect yourself you can take an additional step and get umbrella
business liability insurance.