BPOs WHAT TO KNOW

BPOs What To Know

Broker Price Opinions

I attended a meeting recently and one topic discussed was RE Agents and Brokers performing Broker Price Opinions on behalf of sellers (banks).

Here's what I learned:

It is legal for Agents to prepare BPOs

Agents can prepare BPOs for prospective clients, banks and lenders as long as there is a possibility that the Agent will be granted the listing, and providing the BPO is done correctly. If you know that there is no possibility of being granted the listing, you should not do the BPO.

BPOs or transmittal letters must be written in the following or similar language: "This is a suggested listing price done in anticipation of getting the listing."

Do Not use the word value in a BPO. You're not appraising the value of the property, you're giving an opinion of it's listing price.

Frequently banks and lenders have their own BPO forms that they want the agents to complete. Those forms frequently use the words "value", be aware this.

You Must use the "This is a suggested listing price done in anticipation of getting the listing", language IN the BPO.

Agents can charge a fee for preparing BPOs as long as they do so within these guide lines.

NEVER offer opinions of VALUE, only of listing price

You can register with certain websites for BPO opportunies and learn more

Here are some of the websites: Land America's website, Clear Capital, Single Source, I Mortgage, ASGBPO.com and register with NFSTI.com

Good Luck