Ultimate Bulk REO Secrets

Archive for the ‘What Is A BPO?’ Category

What is a REO property worth? How do you know you are paying a fair price? Who calls the shot? The answer is – Brokers Price Opinion (BPO).

Three little words define how the banks, lenders and mortgage companies value and price properties where:

• Appraisal is not deemed necessary
• Delinquent property is pending foreclosure
• Property is about to be refinanced

Somewhere along the distressed property timeline, banks want to know what’s in it for them. Can they realistically sell it or ship it over for a foreclosure, auction and ultimately bank owned REO.  Broker Price Opinion (BPO) is an affordable and great way to figure it out. Based on Broker Price Opinion (BPO) banks make the verdict and set the price. Properties that are valued high go to short sales and those that are low go straight to foreclosure and bulk reo sales lists.

A broker evaluates a property and gives estimation on its value by assessing the following:

• Comparable properties value
• Local sales trends,
• Associated costs of having a readying a property for a sale
• The Cost of repairs, if any, needed

There are two ways a broker can go about this:

• Drive By BPO or,
• Internal BPO

Drive By BPO

Drive By Brokers Price Opinion (BPO) have very specific and variable information requirements. Typically Drive By Brokers Price Opinion (BPO) involves an evaluation of property condition, location, conformity and amenities, including but limited to:

• Broker information
  Property type, style and age.
• Property size, square feet, lot size, number of rooms
• Property Location
• Conformity to neighborhood and zoning
• Exterior feature evaluation and condition.
• Habitation status. Occupied or not?
• Amenities. Parking, pool, gym?
• Property photos. Two minimum
• Minimum of three recently sold comparable properties
• Minimum of three currently listed comparable properties.

And for all that, the price of Drive By Brokers Price Opinion (BPO) is a round $50.

Internal BPO

An internal Brokers Price Opinion (BPO) is another story all together. Broker goes after everything covered in Drive By BPO and then details interior. Square footage, room count, room photos are all collected, including:

• Room measurement.
• Square footage.
• Condition of interior features.
• Value adjustments to comparable values
• Room photos

• Interior damage photos
• Repair estimate if applicable
• Cleaning estimate

Internal BPO may also include taking care of:

• Lock rekeying
• Winterization.
• Trash removal

• Snow removal
• Damage repairs
• Trash removal
• Securing the property

And of course, with all that an Internal Brokers Price Opinion (BPO) rakes up to a nice price tag of up to $175.

Costing less that appraisal, Brokers Price Opinion (BPO) is a win-win solution for anyone, for the homeowner looking to refinance, for lenders looking to put a property to foreclosure auction, banks figuring out prices for bank owner REO properties, and for the real estate investor looking to cut a deal.