Many financial institutions are submitting certain services as cost savings practices. One outsourcing service is a ‘broker price opinion (BPO). BPO Real Estate is a 2-3-page report that states the opinion of the real estate broker about property value.
Who broke up real estate?
Basically there are two groups of BPO Real Estate providers: BPO Estate and Real Estate companies that independently resolve the BPO on request directly from financial clients.
BPO Company: Mandiri Company (or Financial Company Division) which acts as a clearing house for financial institutions. Like a temporary agent, the company’s screen and meets the professional requirements of property with whom they will partner to complete BPH. This is a general process:
Financial Institutions employ BPO companies to complete this work.
The company outsources the actual assessment and report preparation for quality real estate brokers.
The company provides general supervision, completing the quality assurance evaluation of the report submitted, and returning reports completed to the request client.
Real Estate Professional: Accept BPO works from various companies and / or independent financial institutions. BPO work may be an additional revenue stream or brokerage business income.
To do BPO work, someone must be a licensed licensed broker or licensed assessor. In some states, illegal for real estate brokers to be compensated for completing BPO. Check state regulations before you take the certification course and offer this service.
Who uses the BPO report?
Property may be in seizure, short sales, or real estate (Reo). BPP is used by financial institutions to determine the current value of property. They are also used to determine the selling price or buy for a home loan portfolio and as part of a recent mortgage refinancing or building a home equity credit line.
BPO reports include:
Comparable property value in the area
Local and regional market information
The amount of repair or refreshment needed to make property be marketed.
Basically there are two types of BPO reports:
Drive by BPO: Requires a real estate broker to drive by the property but does not require a broker to get out of the car or enter the house. Brokers take pictures and complete the drive by the BPO form. The average cost for drives by BPO is $ 50.00.
Internal BPO: Brokers must verify specific points about the exterior and property interior. Tasks may be similar to those to drive by BPO but there are often more requirements including contact with homeowners who might be through foreclosure or tenants who have not been informed of the inspection appointment. The cost for internal BPOs generally ranges from $ 100 and $ 175.
In addition to internal BPO requirements, clients can request brokers to complete additional tasks including:
Snow / winter removal
Ridow the property.
BPO activities can be rather cycles, more profitable when seizure rises. Industry experts recommend that BPO brokers have good time management, follow-up skills and billing practices to protect and maintain profitability. Brokers also have to do every visit carefully and diplomacy.