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What is a BPO?

A Broker Price Opinion. Actually it’s a brief analysis from a real estate broker’s perspective as to the value of a property. It’s sometimes called a drive by appraisal or a drive by BPO. Typically it’s a two page report with photos.

Is there any liability for performing BPOs?

While there is risk for anyone performing for anyone else any act for payment, there is very little risk of performing BPOs. You are giving your opinion and nothing more. You are not guaranteeing anything accept that you have used due diligence in preparing the report. In other words you are telling the truth as you know it. Most of the companies you sign up with will be giving you a statement that says they are totally responsible for these reports, not you.

What will I need to get started?

First, you need a digital camera and software which will allow you to down load the pictures to your photo library in your computer. (Almost all systems will do this). Then you need a computer with a high speed connection. Then you need an email address. We could also say that you will need a car and a driver’s license also. You will need to be a member of your local MLS.

Does it cost to register with the companies who order BPOs?

No. You will sign up by going to their web sites and registering. They each have different requirements but none that we recommend will be charging you for being a part of their BPO Brokers system.

Who can prepare and submit Broker Price Opinions?

  • A Real Estate licensee (salespersons license) who’s license is current and placed with a Broker. If this is your circumstance you will be performing this function under the broker’s license and you must be paid through the brokerage so your checks must be directed to the Brokerage.

  • A real estate Broker with a valid current license.

  • Licensed appraiser.

How do I get paid?

You will get paid by the institution which ordered the BPO directly. The good ones pay within 30 days.  We can help you identify those you can count on for timely payments.

How much do I get paid for each BPO?

The fee varies depending on the Institution and the complications of the order. For example some BPO orders will require only three solds and three photos. These will often pay about $50. Other BPOs will require you to supply three current listings, three solds, an analysis of the market and what it will take to correct for the differences between the subject property and the solds used as well as copies of the photos from the MLS of the comparables used in the BPO. These can pay as high as $90.

How long does the BPO take to prepare?

Of course the time required varies with the complications of the order, the difficulty of finding comparables and the skill level of the agent preparing the BPO.  On average, you will spend about one and a half hours preparing them at first but should ultimately develop your efficiencies and skills to do them in about 45 minutes.

How much can I make?

On average you will probably make about $45 per BPO accepted by the ordering institution.  You will have the opportunity to do one or five or more per day within a few weeks once you are registered with a few Institutions.  If you decide to make a full living doing BPOs then you will need to register with ten to twenty providers.  Once you are registered with several institutions you can expect to have the opportunity to accept ten or more BPO’s per day. It’s possible to make upwards of $200,000 a year by preparing BPOs at a full-time, efficient, professional level.

Why would I want to prepare BPOs?

You may want to put a financial foundation under your real estate sales career during this challenging market. That is, make some income while you continue to work on your leads and prospects in the sales side of your real estate career.  You may want to change your career in real estate to a more analytical reliable income.

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