How to Do BPOs?

One of the ways of generating income from REO is through BPO or the Broker Price Opinion. The book, REO Boom provided ways on how to effectively do a BPO. This is commonly needed by lenders, mortgage companies or loss mitigation agencies.

It is done when the users feel that an appraisal is unnecessary and that a faster way to value the properties is better. There are different types of BPOs. A real estate agent could do a Drive By or a Full Internal BPO.

What is a Drive by BPO? Many have the impression that this will only require the agent to present a few photos taken from the streets. This is not the case as lenders have specific requirements regarding how it will be done. The agent will assess the property based on external factors.

He needs to provide the needed information of the lender which includes the location or neighborhood and if followed the zoning rules of the locality. The agent should also describe the property’s style, type and age. You should also indicate if you think there are people occupying the property. Provide the profile of the property as well. You should include the lot size and the parking space. Provide estimate of the room count as well. You are also expected to provide comments as well as comparables of similar properties that were recently sold or listed.

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