I am new to the BPO industry and have used received my first BPO on a property that the interior has been completely destroyed. Everything ripped out of the walls, holes everywhere, totally uninhabitable.

My question is how do I find comparables (sales/listings) in that condition that are NOT REO/Foreclosure? Do you just find a property that is similar in size, age, lot and go with that (disregarding the condition)? I am LOST here because the BPO can't have comps that are REO or Foreclosure....so how do you go about that?

Another question has do I know if a property is REO/Foreclosure, because I can't use these as comps? And how do I know if it was a good sale?

I would greatly apppreciate any help available!!!

Select your comps based on GLA and lot size, perhaps other client specific requirements such as age, style and proximity.

Discount the indicated value by estimated repair costs to rehab it to the conditions of the comparables.

Your MLS should indicate if your comps are REO/Foreclosure; even when they say don't use them they may be the best available and might be accepted if adequately explained in the comments.

Thanks for the input.

So, it is okay to submit comps that the condition of the properties are in good condition (little or no work needed).

Yes, the MLS listing generally say if it is REO/Foreclosure, but how about if you need to get a comp from the TAX ROLL. How do you know here?

Bratz do you really think you can give an accurate value of this home? If no, you might want to send the order back to your company. I wouldnt want someone asking questions like this estimating value on ym home/listing. Not trying to be mean, just giving you something to think about.

Thanks...Really...no I don't think I could give a good value because I'm not a contractor (and really would not be able to give an accurate estimate of repairs..too many)...if it were up to me I would condem and demolish.

So, what you recomend is NOT to accept orders where the properties are destroyed? But how about after you spend the time to drive out??

Depending on how bad it really is you also have the option (with your client's agreement) to price it as raw land value plus value of permanent (undamaged) improvements less cost of demolition and removal.

Im talking about giving the value of the home. However you should know how much repairs cost, because you have to adjust your values based on those repairs.

Heres my personal opinion. It sounds like you should not be completing this bpo to due lack of experience. I would cancel the order and tell them why. I dont think you should be paid a trip fee, because you cannot determine the cost of repairs. I was just at a house today that was completely gutted. Even the subfloor in the kitchen was gone. I can estimate repairs within $5,000 on a home like that. If you are doing bpos, you should be able to as well. You wont provide the bank with an accurate value, so why complete the order?

You don't need to be. Talking with a few never hurts, though.

Hi Bratz. Just thought I'd offer a suggestion that might actually help you move forward here, rather than make you doubt your compentence as others here seem to get off on doing at times. Try contractors.com. They have an estimator tool there that is very helpful and works off of a zip code that you have entered for values. Hope that helps! Good luck.