The Broker Price Opinion (or BPO) is a very important aspect of the Short Sale and REO (bank owned) Process. Many banks factor the BPO as a very important part in determining whether they will allow a contract to close or not. The BPO is very similar to an appraisal, only it is conducted by a Real Estate Agent or Real Estate Broker and will be order through bpo companies. The Real Estate Agent is contacted by the bank or from any of the BPO companies to conduct a BPO (also known as a property valuation) on behalf of the bank. The bank or bpo comapnies are trusting the Agent to paint a clear opinion of value to the bank so that the bank can make a well informed financial decision.
In essence, the BPO Agent is the bank’s eyes on the property at ground level. Some banks will not use BPOs and will only use full blown appraisals. The difference is cost and timeliness. A BPO when ordered through a bpo company can be done quicker and for less money than an appraisal can. Who can complete BPOs?
You must have an active real estate broker or salesperson license. Licensed appraisers can complete BPOs as well. Each state may have different laws relating to the BPO businesses (please check with a bpo company first). Some states do not allow this type of business for payment, while most do. Contact your licensing state or Real Estate Broker for more information.
How much will I be paid by the bpo companies?
On average, you can be paid anywhere between $25 - $100 per Exterior BPO and $50 - $150 for an Interior BPO. There are times when you can request additional fees from the bpo companies for rush orders. Most bpo companies already have a set amount they pay for these services, although some may ask you how much you charge.
How long does it take to complete a BPO?
The amount of time needed to complete a BPO strictly depends on the agent and the situation. On average it takes about an hour to an hour and a half to complete and exterior BPO. An interior BPO takes about an hour and a half to two hours to complete. Having proper systems in place will facilitate a smoother process.
