BPO Certification Classes, Do They Really Matter?

Oh My All the BPO Certification Classes

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Real estate professionals are starting to realize more and more that BPOs (Broker Price Opinions) are a fantastic way to bring in additional income each week. If you’re starting to consider doing BPOs as an additional income stream, you might wonder whether you need a BPO certification or not. By understanding the process, you can determine whether a BPO certification is right for you.

What is a BPO Certification?

Typically, real estate professionals will go through an organization like the National Association of Broker Price Opinion Professionals to become certified. They will pay around $200 to $300 for a one-day course or webinar that covers certain topics like how to find BPOs, how they should be used, and more. Along with the certification you may get the opportunity to be given BPO offers and start making money. However, many real estate professionals believe that this is a waste of money.

Do You Really Need BPO Certification?

While organizations like NABPOP will have you believe that you must be certified in order to perform BPOs, the truth is that most companies do not even check for certification. As long as you’re a licensed real estate agent, you don’t really need to pay a few hundred dollars for a one day course that says you’re certified. In fact, many agents work for several companies each month and have never been asked to go through any kind of certification. If you can perform BPOs without the certification, why would you even worry about it?

The Benefits of a BPO Certification

Even still, some real estate agents feel that it’s worth their while to go through the BPO certification classes. For most people, the biggest benefit is the offer of work. This may be for individuals who don’t know where else to search for work or aren’t sure whether they can find work anywhere else. There are many, many companies that will offer BPOs to uncertified real estate professionals. You simply have to know where to look.

How Much Money Can You Make with BPOs?

The amount of money one can make with BPOs will really depend on the types of BPOs they do each month and how many they do each month. For instance, an internal BPO will pay more than an external one, although it will take a little longer. Internal BPOs will usually pay around $50 while external BPOs pay about half that. Therefore, if a real estate agent can line up just 3 internal BPOs per day, they can make $150. In Conclusion For most companies offering BPOs to professional real estate agents, a BPO certification simply doesn’t matter. If you’re having a hard time finding BPO offers without going through an organization like NABPOP, research some of the other BPO companies or network with fellow real estate professionals. A few companies that offer BPOs include Clear Capital, Equator, ProTeck, Ocwen andOldRepublic. For a detailed list of BPO Companies see our comprehensive free list of bpo companies and our ebook on How to Complete a BPO.

Broker Price Opinions Making More Income

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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

More Distressed Homes means more Valuations and BPOs

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Valuations and BPOs

Unfortunately, distressed homes are on the rise; individuals are finding it more and more difficult to pay off their home loans. Therefore, homes are going into default and foreclosure, and this increases the need for banks and lenders to determine how much their homes and properties are worth. Because a full appraisal is more expensive than Valuations and BPOs, often times lenders will choose the BPO route. However, both valuations and BPOs are on the rise.

Realtors and BPOs

Banks and lenders hire real estate professionals to perform valuations and BPOs, or broker price opinions, on properties and homes when they want to know the value but don’t want to pay for a full appraisal. The real estate agent goes to take a quick look at the property to determine the worth, and sends a small report to the lender with the information. This allows the lender to determine what to ask when auctioning the home or when a homeowner is attempting a short sale. It’s a great way for real estate professionals to make extra money, especially if they can pick up a few BPOs a week.

What is Involved in Valuations and BPOs?

There are two different types of BPOs, an internal BPO and a drive-by BPO. For a Exterior BPO, the agent will simply drive by the property and take a look at it, and compare it to other properties for sale in the area. They will use the information they’ve gained to create a report. With the interior BPO, agents will typically go inside the home, may take measurements and photos, and then use that information to draft a report to send to the lender. BPOs typically pay between $50 and $150 each, so it’s something many real estate professionals want to take advantage of.

When are BPOs Used? Valuations and BPOs

BPOs are most commonly used when a homeowner is attempting to refinance, or when the home has gone into default and the lender is considering a foreclosure. They can also be used when the homeowner is attempting a short sale to prevent a foreclosure. Lenders utilize BPOs because they’re cheaper than a full appraisal, and the BPO is still fairly accurate, since it’s coming from real estate professionals who know the market and the current trends in the local real estate market.

Where to Get More Information

NABPOP, or the National Association of Broker Price Opinion Professionals, is a wonderful place to learn more about BPOs and to get the information needed to perform them. NABPOP can provide real estate professionals with the information they need, the tests needed to become certified to perform BPOs, and can connect them with companies who need BPOs. While the full membership price of NABPOP is about $220, the benefits are great. Real estate professionals can join a community where they’ll be informed and given resources to start BPOs and make extra money on the side. If you are looking for a book of how to complete a bpo you may want to see our book.

Overall, BPOs are a great option for real estate agents who want to make a few extra dollars, and they’re helpful for lenders who don’t want to pay for full appraisals.

Vacant Land BPO and Tips for Valuing Vacant Land

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Vacant Land BPO and What you Need to Know

BPOs are a great way for a real estate professional to make a few extra dollars each week. Occasionally, a real estate agent will need to do a vacant land BPO, or a BPO of land without a house. These can be tricky, but there are a few important tips to remember that will make doing a vacant land BPO much easier.

Nearby Lots of Similar Size

One of the most important things you can do to correctly perform a vacant land BPO is check out nearby lots of similar size and see what they’re selling for. It’s important to look at a variety of them, and then average out the price so you can get a good idea of what your lot is worth. Try to find lots with similar characteristics as well, such as cleared or partially cleared, close to the main highway, near parks, etc. This will help give you a good starting figure for your vacant land BPO.

Factor in Improvements

A simple lot that hasn’t been cleared would be considered “raw land.” However, if the property has been cleared and there are improvements, it will be worth more money. Determine whether the lot has a septic tank, a driveway, or hookups for utilities in order to help narrow down the value of the property. Having these things makes the property more valuable than raw land. Also factor in any other characteristics or improvements that would increase the value of the land.

Consider the Nearby Properties

Even though the lot is vacant, it’s important to consider the properties nearby. What sizes are the homes and are they in good shape? Are the yards maintained and manicured, or do the properties look as if they need maintenance? Is there garbage in the yards, or do the homes have visible damage? The characteristics of the surrounding properties and homes will factor into the value of the vacant land. Vacant land with high quality properties and well maintained houses and yards nearby will be worth more than those in neighborhoods that are run down or shabby.

Location

If the land is in a great location, the value will be more. For instance, if the land is across the street from a park, within a mile of the nearby elementary school, or just a mile from the closest zoo, the value will increase. Take into consideration the location of the property and whether it’s close to any attractions, libraries or schools.

When doing a vacant land BPO, sometimes you have to work a little harder than with a BPO for a home and property. However, by searching for nearby properties with similar characteristics, factoring in improvements, location and considering nearby properties with homes, you can come up with a fair and legitimate value.

The Fannie Mae standard Residential form is used for most residential Vacant Land BPOs as opposed to a specific Vacant Land BPO Form. BPO Forms offers the Fannie Mae BPO Form and many others and hundreds of agents, brokers and others have generated a Vacant Land BPO through the system.

Interior BPO and Exterior BPO

Interior BPO or Exterior BPO

Understanding an Interior BPO and an Exterior BPO

Real estate agents can potentially make extra income by performing BPOs (broker price opinions). While it might not be your dream job, it is a relatively easy way to make money, and in this economy and with this housing market, anything helps. By understanding more about BPOs, real estate agents can determine whether they are interested in pursuing BPO work.

When Is an Interior BPO or Exterior BPO Needed?

Banks that find themselves in need of a quick estimate of the value of a home will order a BPO. This may be because they’re trying to determine whether to accept a short sale or because the home is close to going into foreclosure. They’re typically used when a bank feels as though a full appraisal isn’t necessary, although there are different kinds of BPOs. Bankruptcy proceedings and a few other legal procedures can sometimes also call for a BPO. If you are just getting started it is probably best to concentrate on BPO’s from banks as they are the most plentiful.

Exterior BPO

The less work intensive of the BPO types are exterior BPO’s. Agents will only be required to take exterior photos, sometimes including an address verification and street scene. The idea is to determine the value of the home based on the property style, how old it is, and what kind of home it is. Also to make sure there is no major damage to the property that is visible from the exterior. Information that might be included on this type of BPO can include whether or not the home is occupied, how many rooms are in the home, the shape the land and home is in, and how the home compares to the nearby properties. Some lenders will ask for specific information as well, that should be included on the BPO.

Interior BPO

Another type of BPO is the interior BPO. With this type, the agent will actually need to enter the home. In some cases, the home will be occupied, so the agent will need to set up an appointment with the occupants in order to gain access. Similar information will need to be written down, including the shape the property is in on the inside, whether there are any damages that are visibly noticeable, and any other information the lender specifically asks for.

The external BPO should take about an hour while the internal BPO doesn’t take much longer than that. The typical payment for this kind of work is between $50 and $90. By obtaining a few of these each day, an agent can make great supplemental income and if they are able to receive enough orders even possibly fully support themselves. Performing BPOS’s is often a first step in becoming an REO broker, so if you are interested in listing REO properties, performing fee BPO’s maybe the best way to learn the business.

In order to start doing BPOs, agents will need to sign up with asset management companies that assign these after getting orders from banks. You’re required to have a real estate license, local market knowledge and access to the MLS in the appropriate areas.

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FAQs about Broker Price Opinions

Real estate agents or brokers who want to pick up an extra source of income can take advantage of broker price opinion orders. While many already draw an extra income by formulating BPOs, others may not be familiar with the process or exactly what BPOs are. By understanding more about broker price opinions, you can learn to take advantage of the demand for them.

What is the common pay for BPOs?

An agent can make a great extra income from broker price opinions, especially if they’re able to get quite a few each week. A typical BPO will pay about $50, which isn’t much, but it can be completed in just about an hour. An exterior BPO only requires a basic look at the property and the surrounding properties. An interior BPO may require interior pictures and a slightly more in-depth look, and those pay about $80. Exterior BPOs can still be completed in less than an hour, so it’s still great pay. For agents and brokers who are able to get several BPOs per week, the pay will definitely add up.

Why are BPOs ordered?

BPOs are usually ordered by a bank when they want to know the value of a property. This could be because they want to determine whether the owner should be able to refinance the home, or if the property is in foreclosure and the bank is considering a short sale for the home, or any number of other reasons. With the huge number of properties in foreclosure around the US, BPOs have become very popular and there is typically a large demand for them.

What are the requirements to be able to perform a BPO?

Banks only typically require broker price opinions to be performed by a licensed real estate professional, so this makes it a great extra income for agents and brokers.

Are broker price opinion orders obtained through the banks?

No. Although the banks do order these BPOs, they typically make their needs known to an asset management company. Real estate professionals can register with asset management companies and then be informed of properties that are in need of a BPO in their area. The trick to getting enough BPOs to make a decent income is to register with more than one company. Many agents use a separate email address that they save for this purpose only, and then forward their emails to their cell phones so that they can quickly claim BPOs for their area.

What are the other benefits of BPOs?

Many agents enjoy doing BPOs that could turn into REOs, which are real estate owned properties. This gives the agent a chance to sell the bank-owned property for a commission. Many asset management companies who assign BPOs will give the agent that performed the BPO a chance to sell the REO home. This is another way in which BPOs can be profitable for agents.

Overall, BPOs are a wonderful thing to look into for an extra income as well as building a second income stream from eventual REOs.

Supplemental Income with Brokers Price Opinions

To the unfamiliar ear, a broker’s price opinion, or BPO, may sound like a complicated figure reached through numerous steps done by a real estate broker. The truth is that a BPO is actually reached through a very simple process, and many real estate brokers use Broker Price Opinion’s to supplement their incomes.

What is a BPO?

A BPO (Broker Price Opinion) is a very rough estimate of what a broker thinks a house might be worth. They’re often used by the bank when a home has been foreclosed or in other situations when the bank wants to know about how much the home is worth without getting a full appraisal. In most cases, a full appraisal has been done on the particular home at some point within the last several years anyway, so the bank has a rough idea of what the home is worth, but wants a broker’s opinion, typically after a family moves out or some other change has been made.

BPO’s are often a cheaper alternative than appraisals for banks. As a real estate agent you should take advantage of this fact!

How a Real Estate Broker Completes a BPO

While the name might sound complicated, the truth is not. When a real estate broker complets a BPO of a particular house, most of the time they simply drive by. This type of report is often referred to as a drive by BPO. They look at the house from the outside and make a determination based on that as to what the house might be worth. In some cases, the broker may get out of his or her car and actually assess the house a little more closely, but in most cases, they simply take a quick look.

The broker will look at things like the value of the properties around the home, the trends in sales occurring in the neighborhood, as well as any estimated costs of repairing the home or getting the home ready for sale. While a BPO sounds a lot like an appraisal, it is very different and much less in-depth than an appraisal, it is more comparable to a CMA.

Requirements

In order to perform BPOs, banks are looking for qualified real estate professionals with local market knowledge. Most of the time, a bank has a list of homes that require a BPO, and the brokers work on a “first come, first serve” basis. Essentially, the first realtor to accept the BPO order will be paid for the order as long as it is completed on time and to the clients quality control standards. It’s a great way to supplement income, especially for brokers who aren’t selling homes as often as they would like. In addition if you are interested in pursuing a career in REO’s, most clients will require experience working with BPO’s.

How Much Can a Real Estate Agent Make with BPOs?

With a long list of BPOs, a real estate agent could make anywhere from $3,000 to $7,000 extra a month doing BPOs. Depending upon the amount of work the real estate agent can handle, the numbers can vary a lot, but this is a good source of additional income for any real estate agent.

BPO Quality and Condition Guidelines

Below is a copy of a useful guideline to have consistent guidelines when noting or adjusting for BPO Quality or Condition. While many agents still predominantly use Good, Average, Excellent, as the descriptors, its becoming difficult to interpret. One agents opinion of Fair maybe another agents Good. The guidelines below are to give you a potential break down of some standards that are circulating to be used when completing Broker Price Opinions. At the end of the day though, A Broker Price Opinion is just that. An opinion. Good Luck.

BPO Condition Ratings Instructions

Commercial BPO Form Available

Finally a Commercial BPO Form!

We know that is what many of our users are saying. The commercial BPO form is one of our most frequently requested forms and you no longer have to look elsewhere. The commercial BPO form is available from within all paying subscriptions to BPOForms.com. If you are currently a member you will see the commercial BPO form in your available forms list.

The form provided offers the ability to perform generalized Commercial BPOs for multifamily, Retail, or Office properties. Looking for a vacant land bpo form. While there are a lot of factors to be considered when generating a Commercial BPO, our Commercial BPO form is a general version that allows you the freedom to present your facts regardless of how much information you actually have.

If you are interested in signing up, please check out the demo version of the form. We have also embedded the form below:

If you have any questions or concerns, please do not hesitate to contact us via our contact page. Our BPO Forms Software allows you to easily fill out the information you have for your specific subject property. Our layout provides a simple format to enter the information as you collect it. Save your work and return at your leisure. At any time in the process you can click on the icon of the printer to preview what the filled in BPO form looks like. Once you are comfortable with the BPO you can email the Commercial BPO form from the system or save it as a pdf to your computer and print or email later. Generate unlimited BPO’s and choose from over 20 different BPO forms to provide a client, financial institution or other interested party. Thousands of BPOs have been generated with our software and its easy to see why. Learn more about our features and get started generating your Commercial BPO Form Today. Click Here to Learn More.

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