If you’re like almost every real estate agent I know, you’re looking for all the extra income you can get. If that’s the case, trust me, it can happen with BPO.
What is a BPO and why is it important to know about it? BPO stands for Broker Price Opinion and that is exactly what they are; an opinion on the real market value of a property. A financial institution may require a BPO for one of several reasons ranging from verifying information for homeowner’s insurance to foreclosure.
The process of completing a BPO is very similar to a competitive market analysis of a home you are listing or buying. Most BPO companies will require you to submit at least two and sometimes three similar compositions. Therefore, you must have access to a local MLS to obtain that information. It will provide square footage, age, condition, neighborhood information, etc.
There are two types of BPO; one is a unit the other a full interior appraisal and comp.
The tour is much faster and requires clear images of the front, side and street views of the house. The interior evaluation also requires these photos and more. You will take pictures of every room in the house, including the garage. You will take pictures of any damaged areas or areas that need repair. Walk around the house and take photos of the backyard, foundation, etc. You can always delete the photos when you get back home, but it will be very expensive to go back and take a photo that you wish you had taken.
Your camera equipment must be able to take clear images in low light; often the electricity will be cut off at the location of the property. Your best option is to use an auxiliary flash accessory. If your camera doesn’t have a hot shoe flash accessory, maybe a slave flash will work too. Also shoot at least 5 megapixels or higher, you will probably need to crop your image to show any repaired or damaged areas and you may retain detail better with a high resolution image.
An important tip to remember when taking photos is to make sure there are no people in the image, especially an image of someone who is recognizable. Another piece of advice, NEVER take photos of children. Not only are they likely to be turned away by the BPO, but it can also cause concern in the neighborhood.
When you receive a BPO and *before* you accept it, check the location of the property on a map. If you can’t find the address on a map, in my opinion, forget it. You will spend much more time locating the property and you only get paid for producing BPO and not locating the property.
Always be mindful of your personal safety. You will often be in parts of the city that may not be as safe as others. When in doubt, call the police to check the vacant property before entering if you feel uncomfortable.
A data phone with email and internet access is also recommended, I use a BlackBerry and recommend you consider one. Many BPO companies will forward an application to multiple agents in your area; the first to respond gets it. If you only have access to email at your office, it will often take too long to respond.
If you have at least two years of Real Estate experience, are willing to do some driving and do some research, you will probably find BPOs to be a good source of additional income. Your BPO income won’t match a home sale, but if you build a list of clients, you may very well keep the bills paid until a sale happens.
Important: Trading in BPO generally requires a real estate license in your state along with at least two years of experience.