Many agents today are doing broker price opinions to supplement their real estate income. If you are not familiar, a broker price opinion (BPO) is used by a bank to establish a rough estimate of listing price for a property. A BPO is not an appraisal. Broker price opinions require various levels of details including past sale data, comparable data and repair data. Also necessary are photos of the subject property.
Many companies order broker price opinions. Some are ordered directly by an asset management company or lender and other are ordered by a third-party consolidator. Many third-party companies have significant volume and an agent can make a decent second income working on BPO reports.
My favorite BPO companies are:
- Asset Valuation and Marketing
- Old Republic Default
- Clear Capital
- Main Street Valuations
- Nations Valuations Services
Getting started with these companies is generally pretty easy. Most provide a registration form on their website. You will need to provide copies of insurance, coverage area zip codes and a W9 for payment. Several of the above companies also pay electronically.
When completing BPO reports, it is important to remember to meet the clients requirements while letting your market knowledge shine through the report. Clients make signifiant decisions based on the information in these reports. To learn more about broker price opinions, visit the National Association of Broker Price Opinion Professionals (NABPOP).