Broker Price Option Companies

Broker price opinions are used to determine the current market value of the property used by mortgage lenders and banks. Homeowners in pre-foreclosure seeking mediation either through short sale or loan modification. Mortgage lenders will order a BPO to get an estimate on the current value of the property or to compare it to the mortgage balance owed,

When a BPO most likely will be used

Real estate agents are used to do broker price options to save on the high cost of appraisals, refinancing or in the case of delinquent payments or pending foreclosure. Some of the things that are considered when pricing a property are the value of similar surrounding properties, sales trends in the neighborhood, as well as a estimate of costs to get the property ready for re-sale.

Distressed Properties, Real Estate Agents vs. Appraisers

Cutting costs lenders are seeking to use real estate agents to value property, some argue that this will lead to lower estimates that will push down the market values in order to insure a easy sale of the property. Distressed sales has made it harder for licensed appraisers to do all valuations.

Home prices continue to fall more BPO's are used in foreclosure distressed property sales. So as lenders approve short sales a home will sell for less than the mortgage to avoid foreclosure. This has created an increase in the use of Broker price opinions to estimate fair price as well as for figuring out the price to list foreclosers for sale.

The fact that appraisers do not select foreclosures in their comps, lenders ordering BPO's will use REO comps for loan origination, short sale determination or REO pricing.

Short sales or foreclosures will get a broker price opinion which is graded on accuracy and timeliness, over a appraisal where the cost could cost hundreds of dollars. Real estate agents are paid a fee for doing a BPO's and many have received commission off the home once it sold.

Nevada Foreclosure Mediation Laws allow for the amendment to the former rule requiring that the lender provide an appraisal made within 2 months of the mediation date, the change will allow for the mediator to accept a broker’s price opinion letter in addition to or in lieu of the appraisal.

It is interesting how real estate agents, brokers, and appraisers conduct broker price opinions from Broker Price Opinion companies as independent contractors.

• Clear Capital BPOs include narrative on local market conditions, neighborhood characteristics, subject property condition, analysis and photos of three current listings and three recent sales of comparable properties as well as suggested list and sales price.

• National REO BPO report contain local market conditions, neighborhood characteristics, subject property condition and an analysis of current listing as well as recent sales of comparable properties. Most will have photos, with a broker’s suggested list and sales price.

• Firstclose offer Broker Price Opinions and property valuations that include site inspection, subject, comps, MLS and market data from the top appraisal management service providers

• National Regional Valuation Servicing offers drive by BPOs and Internal BPO's and they work with the top mortgage lenders and are known for their exterior evaluation form.
  

Real Estate agents have an opportunity to make extra money by learning how to provide property valuations to mortgage lenders, here are some places to get training and certification.

• NABPOP The National Association of Broker Price Opinion Professionals. A Professional Association with Training and Certification

You will learn excellent basic information about BPOs.,Training, Testing for knowledge and certification as well as a network to connect agents with lenders and BPO buyers.

Other things to consider include: What is Done in a Drive By BPO, Definition of BPO and What is a BPO?, Is it Legal for You to Do a Broker Price Opinion for Money?

• Broker Price Opinion University, a fully accredited BPO training institute for BPO and REO professionals.

• Broker Price Opinion Basics 112, learn the ins and outs of the busy BPO business in this special Certified Foreclosure Agent training course offered throughForeclosure.com Agent University.

The course will cover an overview of the BPO business, the different types of BPOs, how to prepare a BPO from start to finish, how to establish long-term business with companies that order BPOs, how to get more BPO orders.

• NABPOP, learn how to secure REO Listings. How to increase Home Pricing Skills. How to get a Broker Price Opinion Education. Broker Price Opinion Training and Broker Price Opinion Certification.

• Online Broker Price Opinion eLearning, You can find training seminars by searching for Online BPO career or certification training by format and location or you can try looking for Broker Price Opinion Web and Online eLearning courses.