A Broker’s Price Opinion is the process a hired sales agent utilizes to determine the selling price of a real estate property, a BPO is an estimation of the probable sales price of a residential or commercial property based on the recent sales comparables sold within the area. Financial institutions order a BPO from a Real Estate Broker in which the broker will perform the BPO.
The price from the BPO is entered into a 2-3 page BPO report, which includes; neighborhood analysis of the property, comps (comparable properties), and local as well as regional market information. The process of deciding a price is similar to a CMA (Certified Market Analysis) and also a residential real estate appraisal.
Some factors that will affect the price of a property in a BPO report are:
- The values of similar surrounding properties
- Sales trends in the neighborhood
- The amount of repair or preparation the property needs to be put up for sale
Who can complete BPO’s or Broker Price Opinions?
You must be either a licensed real estate agent, broker, or appraiser in order to complete broker price opinions. Your license must be active and in good standing within the state or coverage area. Some financial institutions may also require omissions insurance as a requirement to complete broker price opinions. You will need:
- A current active realtor’s license
- E & O Insurance
- MLS (Multiple Listing Service) access
- A camera with 3.0 megapixels & zoom or better
- A reliable mode of transportation
- Internet access
- Computer access
- Workable knowledge of your available computer
Why do agents do Broker price opinions?
BPOs can be a side income for Real Estate Agents and Sales Agents because BPOs are an ideal prospect to evaluate their markets, acquire and perfect pricing skills and knowledge. Completing BPOs is a good way to break into the REO real estate business. Broker Price Opinions are viewed by lenders and asset management companies giving you an opportunity to get your name and work in front of someone who might be willing to assign an REO listing to you or your broker.
How much do these companies pay for BPO’s?
Most Broker Price Opinion companies will pay from $40 – $150 for each BPO. Turnaround time, BPO report type, and the BPO company may influence the amount compensated. BPOs may be occasionally requested without a fee in hopes of the financial institution, bank or lender receiving a sales listing for the property.
How do I get started with BPO’s?
Register with the financial institutions that assign Broker Price Opinions. You can manually register with the BPO companies in your area or signup for REO Warrior BPO Registration to complete one form that will submit to every BPO company on our list.