The housing industry relies on about 10 million broker price opinions (BPOs) each year, according to Franklin E. Rodebaugh, principal broker and president of American Wholesale Properties, Inc.
“BPOs are not going to go away,” Rodebaugh said during a panel discussion on BPOs at the Five Star Default Servicing Conference and Expo this last month.
“The industry is extremely reliant on BPOs,” said Brad Froelich of RES.NET, also a speaker on the panel. “If you think you’ve seen a lot of changes in the last 10 years, be prepared. You’re going to see a lot more,” he added.
According to Krista Franks, DSNews, Amanda Cashion from eMortgage Logic and Shirley Mastenbrook of Fannie Mae both agreed that being an expert in the area is the first essentiality for a quality BPO. If an agent is not an expert in an area, it is far better to decline the assignment than to turn in a subpar BPO, they said.
A BPO is a REO agent’s resume. Banks want you to provide the highest quality available. If you do not know how to complete an accurate BPO how will you handle an REO property? You should be locally licensed real estate professionals that knows your local market trends. You should be able follow the Freddie Mac and Fannie Mae valuations guidelines.
Stay tuned for our up coming video that will show you how to apply and perform quality BPO.