How To Become a BPO Agent
BPO means Broker Price Opinion .Many BPO agents can go their entire career without fully understanding the role BPO agents play for banks, lenders and asset managers. If that describes you, you're not alone. To become a BPO agent, there are no special certifications or licenses needed. A BPO agent is simply an agent that has registered with a bank and has agreed to the terms and rule set forth by the bank. Typically a BPO agent earns between $50 and $100 for each BPO they process. Why Bank Need BPO Agents? When a bank acquires a foreclosed property, rather than hire an appraiser to perform a full blown appraisal which usually costs over $300, banks can hire a real estate agent to give a quick estimated value of a home for much less. While an appraisal measures exact square footage, property condition, title history, etc, a BPO provides information for a bank that lets them get an estimated sales price from an agent with expertise in the area.
Responsibilities of BPO Agent
With over 7 million foreclosures expected to hit nationwide, real estate agents are in high demand. Banks also need real estate agents to complete Broker Price Opinions. Become a Broker Price Opinion (BPO) Agent. A BPO (Broker Price Opinion) agent is a real estate professional who provides estimations for what properties will be able to sell for in the given market. These are comparable to a comparative market analysis (CMA) that most real estate professionals are familiar with doing. The difference between the two is that BPO's are not done for homeowners when they are trying to sell their property - these BPO's are requested by different real estate and financial institutions. The most important thing as an agent specializing in BPO's and REO listings is to be on a many vendor lists as posibble. Our list does the job. You’ll find its easy working with Valuations Today, our agents will agree, we use the latest technology which allows fast submissions and we pay promptly. Our website is user friendly and our staff is always willing to help out.Some BPO Agent Steps
- Ensure that you have the credentials - To become a BPO agent you need to have the following credentials: # A current real estate license , Access to the local MLS for your area , List of BPO companies
- Apply to as many companies as possible - In order to obtain assignments as a BPO agent, you must apply as a vendor to each company that you are interested in working for. There are several different websites available that provide a directory of banks and institutions who are currently hiring BPO agents. When I first started, I used the BPO and REO Kit at REO Agent 411. This kit provided a really comprehensive source of information. They offer a list of bank institutions that are hiring BPO's. In order to be successful at becoming a broker price opinion agent, you must have a list of institutions to target in order to get BPO assignments. Just like we target new clients in order to sell their homes as real estate agents, we have to target the banking institutions to provide our service as a BPO agent.
- Get the proper equipment - Make sure that you have access to a computer, MLS listings, and a digital camera. Besides the forms that you will receive from the client requesting the BPO, then this should be all that you need to get started.
- Maintain a good relationship with the institutions that you receive assignments from - Just like we strive to maintain a good relationship with our real estate clients, we need to treat these clients in the same manner. This will help you to get referrals again and again.
- Know the areas that you want to cover - Make sure that you are aware of the areas within your city that you want to cover. If you are not willing to drive across to town to do a BPO, then go ahead and exclude them. With the exceeding high cost of gas, this step is very important. You will need to know the zip codes of your areas of interest. Make sure that you note these. I hope that this information does help to shed some light on an opportunity that you may not have initially thought about as an option to help you as we wait on the market to rebound.
Tips and Tricks
The following is a list of tips and tricks the top agents have used to start and grow their BPO and REO business. Using these steps and HARD WORK, you can dominate the BPO and REO market in your market.
Step 1: Find The Banks You can be the best agent in the world, but if the banks, asset managers and lenders don't know about you, you'll never earn a dime. You need to start by finding an up to date, quality list of companies that need BPO's done for their properties. You can start by calling local banks, lenders etc, but the fastest way to break into the BPO business is to purchase a list from a reputable provider. Much time should be spent on finding the right list. There are many review sites available to help you make the right choice. Remember, if you don't focus on the right BPO leads, the next steps are worthless.
Step 2: Impress The BPO Leads Most agents will simply email or call the BPO leads and request to be added to their list of authorized providers. WRONG! In this market, these companies are getting dozens of these calls. You need to be remembered by them! The key to doing this is treating the BPO leads like you would any other real estate client: Email them weekly with stats on your market Mail them promotional items with your logo / contact information Mail them every month with a memorable item (holiday postcard, sports schedule, etc) Doing this one simple step will put you head and shoulders above the rest of your competition!
Step 3: When you get a BPO, WOW your client! Most asset managers have literally hundreds of BPOs they issue every week. If you can get them to remember your BPO and your name, you'll get the next BPO lead they have in your area. It's easy to be remembered by these lenders. here are a few tips: Personally email them and Thank them for assigning you the BPO lead. Send them a Hand Written thank you card Do a great job on your BPO (many agents forget this step) A simple thank you can go a long way to helping a BPO client remember you and provide you future BPO leads!
Step 4: Use the right tools: Many of the daily tasks of a BPO agent can be repetitive. Using the right tools can help you spend your time on the tasks that turn your BPO leads into consistent BPO earnings. But beware! Many of the systems available are worthless. Do your research before you give anyone a single dollar. Our review site tells you the best and worst tools available to help you generate and service BPO leads.
Step 5: Repeat Getting into the BPO business is hard work, but if you follow the above steps and consistently make contact with the right leads from your list, you'll be amazed at the results you'll achieve.