Thread: BPO's

What BPO stand for? First time I hear that...

It stands for Broker Price Opinion. What it is is basically if you have an active real estate license you can beform these BPO's (basically a mini appraisal) for fees anywhere between $30-120 from what I hear each.

There are differing versions including drive bys, interior, exterior, simple comparisons, etc.

I started doing BPO's now some companies are giving me REO's. Usually a drive by BPO will pay an agent about $50. Its a cheap way for lenders to get a value. There is agents out there that do pretty good just from BPOs.

Ahhhh, BPO's. I've always wondered why they are called Broker Price Opinions when mainly agents do them. Even though I origianlly looked into them as a possible income maker, I do have a bad taste in my mouth for them. I do not blame agents. I blame the lenders/mortgage brokers for using these improperly. There is a reason there are agents and there are appraisers. I feel the increase use of BPO's have helped this current real estate problem. Lender's lending based on bad numbers. Instead of paying $300 for an appraisal, they would only need to pay around $75 for a BPO. Agents of course do CMA's for clients to have an idea at a listing/offer price, but in no way should an agent's opinion of value be used in place of an appraiser's for lending purposes.

To be honest I wish that lenders were not allowed to ask/use BPO's.

To get BPOs you have to register with lenders and asset management companies. Here is a source of over 400 REO companies that you can register with to get BPO orders:

reoagent411.com

In order to do BPO's do you have to be working for a real estate company or just have an active license is sufficient enough. If I have to be working do i have to pay my broker fees on the money i make from my bpo's. Where is a good web site for BPO training courses?

If you really want to provide accurate, or close to accurate BPO's, I believe you should take appraisal classes.

In order to do BPO's do you have to be working for a real estate company or just have an active license is sufficient enough.

I believe this may depend on your state. In Ohio, an active agent license means that it is hanging at a brokerage. An agent is only a representative of the broker, not an independent real estate deal maker. The broker is the only one allowed to give Broker Price Opinions, including agents who represent the broker.

Sounds like a very interesting way to make extra money. Would love to hear how this has worked out for some people.

Do you have to become a licensed realtor first before becoming or using BPO's? Can a real estate attorney use BPO's too?