Why Do BPOs?
I started in real estate while working a full-time job. Working full-time and trying to do real estate on the side was very challenging, because I did not want to disappoint my clients or have any issues arise due to not being a full-time agent. I had spent a lot of time and money to get my real estate license so I did not want to give up. I had to look for other options besides working with buyers and sellers. Becoming a BPO agent turned out to be a great solution for me!
BPOs are a great side gig for those looking to do real estate part-time. There are many real estate agents that do BPOs full-time. That is an option for you as well. BPOs allow you the flexibility to work when you want to work and don’t work when you don’t feel like working.
When you are working with buyers and sellers you don’t get the luxury of flexibility. If a client is ready to buy you are going to have to be there to show them houses. In this market you can end up showing them several houses before they find the one.
Other than making money, BPO agents are really good at valuing properties. I can drive through a neighborhood when going to visit family and friends and quickly have an idea of the value of the homes.
What are BPOs?
BPO stands for Broker Price Opinion. It is essentially a comparative analysis or mini appraisal. Banks and asset management companies hire real estate agents to value properties. They hire agents, because using an agent is more accurate that auto valuation models like Zestimate and less expensive than hiring an appraiser.
NO – you do not need to be a broker to do Broker Price Opinions. You will need to be a licensed real estate agent in your state.
How do BPOs Work?
A bank or asset management company will reach out to a real estate agent to request a valuation for a property. The agent drives to the property, takes pictures, and estimates repairs. Then the agent will pull 3 listing comps and 3 sold comps. Based on all of the gathered information the agent will then submit a value for the property to the bank or asset management company. BPOs pay anywhere from $35 – $75 per order.
How to Become a BPO Agent?
Step 1 – You must be a licensed real estate agent. Each state has different requirements for getting a real estate license. Here are the steps to get a real estate license in Florida. You will need to check with your state to get the licensing requirements. Also, from what I understand BPOs might not be legal in some states. Definitely check your state and local laws.
Step 2 – You will be required to carry an Errors & Omissions insurance policy. Most brokers provide Errors & Omissions insurance as part of your benefits. If your broker does not provide the insurance then there are companies that sell Errors & Omissions insurance policies. Most banks and asset companies will require you to carry at least $500k of coverage.
Step 3 – Take a class on BPOs. A BPO training class or certification is not mandatory, but it will help you a lot. The key to doing a lot of BPOs is you need to be fast. Training and knowledge will help to speed up your work. Some BPO companies require that you take a test during the application process.
Step 4 – Know your MLS system thoroughly. Take advantage of the free training provided by your MLS. If you’re not proficient with using your MLS system, you’re going to be really slow at doing BPO jobs.
Step 5 – Apply to several BPO companies. Our members get access to a list of BPO companies along with the application link. Every BPO company services different areas. Some might do a lot of BPOs in your area and others might not have any BPO jobs in your area. That’s why it’s important that you apply to at least 10 different companies.
BPOs are a Lot of Work!
The BPO forms are very tedious and time consuming to fill out. The forms have a lot of data fields that must be filled in or the order will be rejected. Some agents use virtual assistants to fill out the BPO form. I think automation is cheaper, faster and better than using a virtual assistant.
You hear a lot of agents that absolutely under no circumstance will do a BPO, because the work can be time consuming and overwhelming. In order to be sucessful doing BPOs you must be organized, streamline your processes, get BPO training and use BPO automation.
We are in the beta test phase. Beta testers and founding members will get access to discounts and perks. If you are ready to get started doing BPOs and using autofill software for the forms then join our Facebook group.