O.k guys here's a question. I'm doing my first BPO (yeah me). I don't have a problem with comparables because i've done enough cma's. Here's my question- on the form it has a market value estimate section that wants # of days to sell, market value, and suggested list price for 3 categories:
quick sale "as is"
market value "as is"
market value "repaired"
then it asks for estimated repairs and estimated days to repairs. How am i suppost to find out this information on a drive by bpo with 2 exterior photos? If i don't see the inside of the house how will i know if the water heater needs to be replaced or if there is water damage, or if the floors are shot? Any thoughts?
Thanks guys!!!!

You guess. Use the theory "interior vs exterior same". Meaning that if the outside looks well maintained, the inside probably is too. Of course, that's not always the case, but you just have to estimate. Ain't this FUN? :rolleyes:

It reall depends on the assett management company you are doing the bpo for.Some have one form that has estmations on it for doing ext/and interior bpo's,you need to call the am and ask if they want that info filled out before you go through all of the trouble.Generally if the house is 4 to 5 years or older you can count on new carpet and paint which i put down about 5 to 6k depending on the sq ft of the house.I have soem companoes that want me to estimate and some that there client(the bank) wants it left blank unless you are performing the interior bpo.

good luck

If it looks decent I always put "no repair needs noted in driveby" and $0 for the repair costs. I'm not convinced that's the best answer, but I've never gotten one back.

At time of Drive-by/exterior ONLY inspection no repairs noted.

I do the same thing, Gary. Most of these look OK on the outside so I state "no repairs noted from street view".

No one has had a problem with that. And if you do see something obvious then you just guestimate repair costs and what the added value would be. You get better at this with experience.

Steele in Minnesota

Thanks guys!!!

I appreciate that there are still some agents who are still nice to the newer guys in town

Thanks for the info Kim
Appreciated it.
vicky Schulte

I don't think anyone takes those numbers too seriously...the program puts dumb limits on them anyway. If you have a place with an ocean view that needs to be remodled with a D-8 (that's a bulldozer for you city folks) it will still only allow an "as repaired" value of 150% of the as is value or some such nonsense. I think one form has a limit on the repair cost you can give it too.

If I don't see anything wrong with the exterior, my standard answer is "no damage or repair issues noted" on that section.

On really stupid forms that ask me to estimate interior repairs on an drive-by BPO I always answer "unable to determine from an exterior inspection".....

dragontear12, good luck to you on the BPO gig. It's not for everyone, but I've always enjoyed the fact that it MAKES you learn your market if you do very many of these....and it doesn't hurt that it occasinally leads to a listing.

I judge the interior by the exterior. Rember a BPO stands for BROKER PRICE OPINION. It's just and OPINION, not a CMA. Give what you really think the property will sell for in 90 days or 120 days judging from the exterior. If you repaired the interior the same as you would like to see the exterior, what would the property then sell for.

On forms that require interior repair estimates in order to move on, I base that on how bad the exterior looks, though not really accurate, and note in my comments that this was an estimate, and that a complete interior inspection or appraisal might reveal necessary repairs that were not apparent from the road. I had one company tell me that comment was not acceptable, so I told them to increase the fee and send me for an interior. Didn't happen, but my BPO was approved and paid for.

I've had a couple that included a section for interior repairs on the exterior form, then they kicked it back to me because I did put interior repair estimates on the form. If the section in question had said something like "for interiors only," I would have left it blank! In order to move on, I had to at least activate the fields by clicking on them, so I went ahead and did estimates of interiors based on the exterior condition.

I'm now at a point that I simply leave the line of zeroes on the form for interior estimates and make a generic statement like those above. There are just so many factors that I cannot estimate from a street view. For instance, I was in a house the other day that had a new roof on it (hence, it looked great from exterior), but no repairs had been made inside to correct damage that a leaky roof had caused (hence, the interior was nothing like the exterior).

LizL

If it's exterior only, I'll put "no visible damage" if the outside looks good. Then make sure to note "interior features/upgrades can affect final value", especially if it's typical for remodeling in the area (kitchens/bathrooms lately).

Average stuff, I will include a guestimate based on carpet and paint, and say something about how this could be increased based on an interior inspection. That way, if the cabinets are torn out, or it needs appliances, etc., that is covered. I have never had any turn into an interior, even with large estimates on interior (below average exterior).