I am doing my first BPO tomorrow. Any advice from those of you who are pros. This is an older neighborhood that is kinda run down.

Don't be late!!!

Use good comps and comment extensively why you used them.

Comment comment comment...amd comment somemore! And be careful when you say rundown...that is most likely good condition on most bpo's

It will take you about 1 hour to complete if its your first time, if it takes longer, dont worry, you are still learning. The more you comment on the comps and especially the subject property, the better. Try to get comps that are the closest to your subject property, in the same tract if possible. Good Luck!

They just need CMA. About the auction you value just see what is the market in your area and get it depend should be done on that property, like 15 -20% under the value. Good luck.

HUH?????????????????????

I think the most importent thing to getting more bpo's is being on time, if you fail there quality won't matter because you won't get any more. Start tight on your comps and expand as needed to what you need. if you can get done in 1 hour total it will be a miracle for your first one,mine took almost 3

Thanks so much for the advice. I will let you know how it goes!

Double HUH????????????????????!!!!!!!!!!!!!!

He was asking for companies in another thread so this explains some things.

Jose Cuervo you are a friend of mine!

I'm glad someone else put what I was thinking.

GIVE THEM WHATEVER THEY WANT

When I went to do my first BPO I found out it was occupied so I had limited things I could see about the house. Only a visual from the street. I did get close enough to get the house number in the pic. Do you go look at the active comparables on the inside if you are not able to look at the subject property on the inside to make a valid comparison? What are some of the general things you would describe in this case - roof,paint condition, etc.?

If it was an EXTERIOR, it shouldn't matter that someone lives there. Worry about the INTERIOR when you are assigned to do one.

I'm guessing that you are a brand new agent. If so, you really shouldn't be doing BPOs, especially if you haven't done a CMA for a prospective client. You certainly should have your broker review your work before submission to the BPO company. Learn to use the search feature on this forum. This question is repeatedly asked.

Here in a nutshell is what you need to do:

1. Calculate +/- 15% of GLA (sq. ft.)
2. Pull comps listing/sold in closest proximity to Subject which match on GLA, age and condition. (GLA is always 1st, then age (within 5 years of Subject), then condition - this will not always work but it is the order of preference for ALL BPO companies).
3. Looking at the pictures of the Subject how would you classify the exterior condition? Good, Average, Fair or Poor? Based on what you decide that will be the criteria for the interior as well.
4. Looking at the MLS what accounts for price swings within the GLA range? Newer construction? Upgrades/updating? Take these into consideration when doing the BPO.
5. Comment extensively about why you chose the comps that you did, especially if they are not a great match.
6. Start previewing vacant properties so you know the differences in styles, upgrades, materials, etc. You'll be ahead of the game.

Good luck.

This is the 100th time this has been brought up about new people doing BPOs, and its been said 100 times that this isn't rocket science. Its 3rd grade level fill in the blanks.

I would also beg to say she's not new to real estate based on her website.

No I am not new to real estate but new to BPO's. Frankly I did not know I would get a BPO so quickly. I applied with the company about a month ago and I got it yesterday and it is due tomorrow so please forgive me for not doing my homework as I should. Thanks for the help. I am taking notes so hopefully my newfound knowledge will help me and help me help others.

Well, you researched more than I did about the poster. Based on the question(s) asked (there was another thread by the same poster), it certainly implies a new agent. It may not be rocket science so far as you're concerned but if it's someone's first BPO they've got questions.

Instead of bashing me, what constructive comments are you offering?

At least I gave some pointers.

BPOs aren't rocket science, but they do affect real dollars and should only be done by people who understand them. I have done orders on over $190 million worth of properties/loans so far in 2008. I bet my clients are glad I know what I'm doing.

And maybe one of the problems with some agents doing these is that they think it's 3rd grade level fill in the blanks. Maybe we would have fewer threads about how "I haven't gotten an order from XXX company in months." Just maybe these companies are looking for people functioning on a higher level, especially since they have countless people to choose from.

Sorry that this may not be viewed as constructive, but I am tired of people not taking this job seriously. Just my 2 cents. Bash away.

You don't have to know about the inside of the subject on a driveby, however if you put a little extra effort into your bpos it won't be long til you are overwhelmed with work. I always look up prior listings for the subject and sometimes get lucky with interior photos and upgrade information. I always note that the interior condition is unknown at this time but if I see the subject was a total remodel not too long ago, this helps me choose comps and gives more info on the subject. I also check out the inside of comps used, only via mls though!

I agree the job is important, but it isn't another real estate agents place to claim that because someone asks "stupid" questions, they aren't qualified. If the banks wanted someone with X amount of experience then the bank should do its due diligence and not higher someone with less then what they want.

Thanks Margaret for the info. My opinion everyone about BPO's so far is that it is not 3rd grade level. I have done a lot of work already and I am not through and it was scary getting close enough to someone's house to take a picture of the house number and they are still living there. Thank goodness I went early in the morning and no one was up and stirring. I hope to do good on this one so I will receive more. Thanks everyone for your help!

I'm not going to bash. Why should I? I get what you're saying; however, the horse has left the barn on this one. There's a BPO to do.

I guess I'm the only one who considered the questions asked as new agent-ish. Don't we do this when we do CMAs? Maybe I'm wrong.

I'm with you, BPOs aren't rocket science but there is real money involved for whoever ordered the BPO. Why we're being asked to provide a value is up for grabs but regardless, there is a reason and you're being asked to intrepret your market for someone who doesn't know your market.

Going back under the BPO rock now.

You're the who is implying that the questions are "stupid", I didn't. I did suggest that this is a new agent based on the questions asked. Companies do ask for experience but they ask it in the form of how long have you had your license. Should they be asking more in depth questions? Probably. You're the one who called BPOs 3rd grade level, fill-in the blank work. You're putting a spin on this thread that didn't exist. Asking what to look for when doing a BPO is right there with asking for lists of companies. Search the forum and the answer are there.

Amen, CanDo, Amen.

While I wish the OP the best with her BPO, these are questions that have been answered so many times on this forum that a random search of just about any page of threads would produce the answers needed.

You guys, English is not his first language. I have spoken with this guy in private messages and he is very nice and is trying very hard. Cut him some slack.

texasgal, we are sooooo not talking about what you are (at least not in the last couple of posts).

I did write earlier regarding Viktor's comment, well knowing English is a 2nd language. It doesn't make sense in any language.

What, you're talking about him asking for companies in another thread? I just logged on so I haven't read all the posts yet.

If it's something else, please clue me in.

he..he.. we both edited simultaneously.

I put the stupid in quotations for a reason. I didn't think the question was stupid at all. She has never done a BPO before and she wanted to know if she should use what the inside of the comparable homes look like condition wise in doing her exterior BPO. I also believe that she is looking for key phrases often used in BPO's. Like roof is near end of functional usfulness etc.
The main difference between a CMA and a BPO is that for a CMA you can use your own guidelines for determining what homes are comparable, but on a BPO you need to use the guidelines set forward by the company ordering it. So any specifics you layout are not going to help unless you live in cookie cutterville or thats exactly what the client is asking for.

The vast majority of my BPO's are occupied,unless they are 2nd opinion and after the eviction process,they usually are occupied. As an appraiser,my experience has been that the exterior of an occupied home is usually a pretty good indication of the interior. As far as going to visit the active listings inside, I have never done that for an appraisal or a BPO, PLEASE..Don't start that trend :)) I can see it now, BPO orders with 6 interior pics of all active comps required for $40!! Yikes!! The best way to ensure that you are using comps in comparable condition is to view the MLS listigs for active and sold comps, even if there is only 1 or no pictures on MLS, the description ie "Bring Your Paintbrush" "Needs TLC" or "Fully Remodeled" "Bring Your Fussiest Buyers" tells you about condition. Always search for allll previous MLS listings for the subject, you may find in the description "All new exterior paint, new hardwood floors and newly installed central AC" when it was listed 4 years ago. Appraising and BPOing is mostly investigative work with our knowledge and expertise of our market thrown in of course so look for clues to make sure your comps are similar to subject. Lastly, as far as commenting on subject exterior.. Landscaping,exterior walls, roof,fencing,windows,garage doors I can go on but I think I wrote much more than enough..sorry for the looong thread. I'll give you a quick exterior appraisal comment that I use for my average BPO's "Subject exterior appeared to be in average condition at time of exterior inspection with no signs of damage or deferred maintenance noted" then of course, you add specifics for each subject such as mature trees, corner lot etc etc Much Much More Success To All Of Us!!

Uh, can't we just all get along? Good luck Theresa, just make sure you turn it in on time. As far as being serious goes, hey, I don't mind making $50 for about an hours worth of work, that includes drive time too.

I hope your first one went fine, but please, for your safety, DO NOT get out of your car to do an exterior BPO. If you don't have a camera that can zoom in to get the address shot, get a new one or don't do BPOs. Good luck.

Teresa tips for you:

Never take the street shot close to the subject.You can take a few houses away or the end of the street.This way you need only 2 shots most of the time front and address verification which you should get in about 5 seconds with a digital camera.

You DO NOT have to kill yourself over the photo. Some people get into photo shop and angles and all the crap trying to be a phtographer through bpo's. I have performed thousands of bpo's and as long as there are not people or your car in the shots it passes everytime.

If you are doing an exterior DO NOT comment on the interior!
The house could look great on the outside so they don't hear neighbors complain or get cited for city voilations but they could be slobs on the inside you just don't know.Old pictures on the MLS are inaccurate as condition could have changed since that time.

Just put in remarks that "this is an exterior bpo and interior condition is not known"

If you are doing interiors make sure there are no pictures of people on the walls and make sure if there are mirrors you don't get a reflection of a person in your shot.It is a good idea to start learning what different types of repairs and labor would costs in your area for interior valuation purposes.

Everyone will have varying views on performing bpo's. Alot will have to do with are you in an urban,suburban,or rural area? Are homes mainly in subdivisions are are the homes scattered about on open sidestreets?

If your area has mainly spec homes bpo's are pretty cut and dry.If you are in a suburban or rural area you will need alot of experience and adjustments to do a bpo. A CMA is nothing like a BPO in my opnion BPO's are much more involved.


If you are doing these for a little extra cash make sure you check the tax records before accepting as usually they don't pay more because it's a difficult order.

I only take the hard ones when they pay over 100.00. If you are going to do ONLY bpo's full time and nothing else then you most likley will need to do the crap ones as well. For me I just do it to keep up on the market as my regular sales keep my busy.

Good luck to you we were all there with our first one once upon a time.

Thanks everyone for all this wonderful information. I am taking notes so I will hopefully do a good job!

any suggestions for cutting down on the time it takes to complete a bpo?

There are tips all over this forum. Keep reading and you will find them! It takes time, but the information is here. Good luck!

Another tip on exterior only BPO's the lenders at the conventions all state we must consider the interior condition to be equal to the exterior. So if you figure ext is in fair or poor condition and provide an estimate for repairs you also need to consider interior is in same condition and estimate repairs. I always put a statement also Ext BPO only interior condition can not be verified but for purposes of figuring value for this BPO interior condition is assumed to be in same condition as outside. Now if they come back at you for an interior, then you can adjust your "AS IS" but remember your repaired value should "never" change. Unless values are still adjusting due to market correction or area decline..... In a good market they should never change..... So in todays market price it by forecasting what it would take to sell it in 30-60 days based on the avg decline on most comp actives.... This will work unless real rural, if rural and lack of comps cause you to go to neighboring communities forecasting may not work.

In most cases even if it looks good on the outside you can count on carpet and paint on the inside at a minimum if it's over 4 years old at least in my area.

Some banks will say those are cosmetic items but I say they count because if you have property A that's newly constructed or updated and property B that is outdated or has condition problems that does affect salability and market price for the subject.

Remember a bpo is an opinion and a snapshot in time so don't read too much into it. The people that order these love to come back and say what happened here with this or that months later. Luckily I have never been called on any bpo's I have completed.You can't control what the market does in the coming months or the future condition of the property.

At First Am conference in San Diego they talked to us about completing their bpo's and they went over the scenario of forecasting based on actice comps. And no was talking about forecasting condition of the property. But, you can assume interior to be in poor condition if exterior is and some BPO companies actually ask you to do so. I did 500 bpo's last year and last year my clients expectations were different than this year. Getting in front of your clients sometimes sheds a little different perspectice on what their latest expectations are. That is why if you can it pays to go to some of the industry conventions or read DS News.