Broker Price Opinions as an Alternative Income Stream
Real estate professionals often experience dips in their pay, due to the ups and downs of the real estate market. As many are discovering, broker price opinions (BPOs) are an outstanding way to make extra money until the real estate market improves again. Fairly easy to complete, Broker Price Opinions or BPOs can provide real estate professionals with a steady stream of additional income.
What are Broker Price Opinions?
In some situations, such as potential foreclosures or short sales, a full valuation or appraisal isn’t needed, but a solid idea of the value of a home is. In comes the broker price opinion. A licensed real estate professional drives by the home and gathers information about it, such as previous sale data and the listings around the home, and uses that to formulate the value of the home. In most cases, the BPO or Broker Price Opinions also includes information regarding needed repairs and photographs of the home. Some real estate professionals may include photos of comparable listings nearby as well as the listing information and price.
The Two Types of Broker Price Opinions
There are two main types of Broker Price Opinions, including the interior Broker Price Opinions and the exterior Broker Price Opinions. With an interior Broker Price Opinion, the real estate professional will actually enter the home and may take measurements to include in their report. With an exterior BPO, it’s a simple drive by and process of gathering data. It takes much less time and effort than an interior BPO. Interior BPOs typically pay between $75 and $125 depending upon what is needed and where the property is located while the exterior BPOs typically pay between $55 and $75.
How Much Additional Income Is There to Be Made?
The amount of additional income a real estate professional can make is directly related to the number of Broker Price Opinions they can perform in a day or week’s time. Offers are sent to the real estate professional from asset management companies in care of bank or financial institution accounts.
The number of offers a professional gets will be related to their location and the needs of the financial institution at any given time. Most real estate professionals could expect to be given between 5 and 15 offers each week, which could add up to as much as $1875 per week. However, this is just an estimate of the potential offers and payouts and each professional may experience a different amount.
How to Get Broker Price Opinions Assignments
There are different asset management companies that lenders and financial institutions go to in order to secure real estate professionals for BPOs. Agents will often sign up with several of these asset management companies in order to receive several Broker Price Opinions throughout the week. Some companies require a small membership fee to receive offers. We offer a free list of over 250 Broke Price Opinions companies here.
BPOs are a wonderful additional income source for real estate professionals and this can be extremely beneficial when the local real estate market is down.
Learn How to Complete a BPO