Want to learn more about doing BPO's?
The internet allows us to find others willing to share the knowledge.

Here's a couple of groups you can join.
Some will require approval from a moderator, others welcome everyone in.

• www.nabpop.com - National Association of Broker Price Opinion Professionals


• brokerpriceopinions - a Yahoo Group


• REO-BPO - a Yahoo Group


• Broker Price Opinions - ActiveRain Group


• REO - ActiveRain Group

Labels: BPO, BPO Help, Broker Price Opinion

Many an agent has discovered the BPO mills or factories in search of generating additional or alternative income.

The Good News:

There is plenty of work available out there and there will be even more in the near future.

The Bad News:

Many agents are reporting that doing BPOs has not resulted in getting the REO Listings.

Getting the REO can be hit or miss. Building a reputation with the Asset Manager is key.
Many of the best REO Listing Agents have a REO Business Plan in place, they have an organization, a team, a method to pro-actively attack each and every situation that might arise.

In talking to Asset Managers, that team approach will put you ahead of the local competition. Demonstrate that you are fully prepared for every problem.

• What will you do if the prior occupants drilled holes in the bottom of the fiberglass tub before they left?
  
• You find 3 junk cars in the backyard - now what?
• You can't just throw old TVs away - they must be properly recycled. Do you know how?

We know what to do. Make us a part of your team - We'll help to make you shine!

Labels: Asset Manager, BPO, BPO Help, Broker Price Opinion

John Occhi wrote an excellent article describing how a BPO is compiled and what it means.

John is a short sale expert in Hemet, CA.
He can be reached at (951) 927-8940

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A "Broker Price Opinion" or BPO is a critical step in evaluating the market value of a property. Mortgage lenders will order them to evaluate a number of different real estate transactions. A BPO is used for everything from portfolio acquisition to checking on a properties condition when the first or second payment is late - and they don't have to be consecutive late payments. Most importantly for the real estate investor, a BPO is used to determine when to foreclose on a property, to evaluate short sale offers and finally to establish a sales price once the home has been foreclosed on.

For the sake of this article we will focus on the BPO used in the process of short sales. It should be noted that the lender will typically order at least two of their own (using different REALTORS to evaluate the property) by the time it gets to this stage and if they see conflicting data they will order additional BPO's to establish the value.

The BPO is used to determine Fair Market Value of the subject property. More often than not, the BPO is an exterior report only that typically consists of pictures of the front of the house, and address verification picture and pictures of the street. In addition, if there are any detectable repairs or deferred maintenance issues, the broker will typically photograph those areas as well.

The broker will conduct a market survey analyzing at least three active listings and three sold listings that are the most similar to the subject and the closest to the subject. Acceptable comps will vary allowing for a 25% deviation in the square footage of the home and allow for one bedroom larger or smaller. Homes should also be within 10 years of the age of the subject - either older or newer.

Once the properties have been selected, adjustments are made on the above factors as well as lot size, total room count, amenities and upgrades as well as location and overall condition.

The BPO not only looks at the house in foreclosure it must take into consideration the neighborhood conditions as well as trends in the market. The BPO should report on how many homes are currently on the market in the neighborhood as well as looking at the average Days on Market (DOM).

Other considerations are given to the economic conditions and trends in a neighborhood; i.e. employment, crime, schools and anything else that affects the value of the property - either positive or negative.

As an investor ordering the BPO to include in your short sale package you should consider meeting the broker at the property and order an interior BPO if there are damages that would help build your case. If the inside is pristine - then don't worry about the interior.

It never hurts to have comps available to provide the BPO agent - as long as they are legitimate comps. Ethically, the BPO agent will have to research the real estate market on their own - but having reliable resources never hurts anything or anyone.

When working with a BPO agent, always remain ethical. If you research on the web, you will find many examples of what not to do. Remember, you are not looking for a homerun every time you come to bat, you just want to get a good deal and a clean deal - get on base and make a few bucks for your effort.

Labels: BPO, BPO Help, Broker Price Opinion

I had a caller today from the upscale Lakewood neighborhood in Walnut Creek. He said his neighbor had gone through the foreclosure process and their home had now become an REO.

Instead of waiting for the Sheriff's Office to come and escort them off the property they decided to "break camp".

The moving truck came and in a matter of hours they had packed most everything into the truck and were gone. Well almost everything.

The person that called me had gone over after they left and peeked in the window.
They left numerous piles of decomposing garbage inside the house and out. The biggest pile happened to be in the middle of the living room floor!

He said they took all the curtains, all the curtain rods. They yanked the lighting fixtures right out of the wall. The power had been turned off but live naked wiring hung from where the ceiling fans used to be.

He was most worried because of what they left in the middle of the driveway - a full can of gasoline!


You just never know.

Labels: Debris Removal, REO Problems, Trash Out