What They Don’t
Teach You at BPOTeach You at BPO
Bootcampp
Learn the inside secrets on
performing impressive
evaluations
I thi iIn this session:
 How to get MORE business doing BPO’s
 What Asset Managers & Investors look for
 Do’s and Don’t...
M B iMore Business
 Offer Free 2nd Opinion BPO
To AMs you would like to work withTo AMs you would like to work with
To...
St i BPOStepping up your BPO
 Quality Remarks
 Don’t just use canned remarks
 Use quality remarks that are unique to th...
St i BPOStepping up your BPO
 Quality Photos
 Full set of photos
 Shoot as wide angle as possible
 Good lighting Good...
Asset ManagersAsset Managers
I id SInside Scoop
 They have hundreds to
review
 You likely can get away
with shortcuts/errorswith shortcuts/errors
 S...
AMs closely look at
1. Suggested Prices vs. Comp. Prices
2. Your Summary Remarks2. Your Summary Remarks
I id SInside Scoop
 AMs questioning a comp used in your BPO
 Usually means your value is not synching well with the othe...
I id SInside Scoop
 Remarks, Remarks,
Remarks
 If you are getting calls on If you are getting calls on
other items on t...
Investors, the Asset,
Manager’s Bossg
I id SInside Scoop
 Investors review the
report in greater
detail especially if thedetail, especially if the
property lin...
I id SInside Scoop
 Will review tolerances
 “Why comp #2 has 2 beds and our subject has 4?”
W t d t il f i it ith bid t...
I id SInside Scoop
 They will take offense
to off color remarks
Example:
“S bj t t i“Subject property is
located in an ar...
I id SInside Scoop
ALTERNATIVES:
 “This area is a much older
neighborhood compared to most. Most
home buyers are interest...
Do’s and Don'tsDo s and Don ts
D ’Do’s
 Stay within general tolerances
Use comps within 10% of price of subjectUse comps within 10% of price of subjec...
D ’Do’s
 If you must exceed one of the BPO guidelines, ALWAYS
make sure to comment as to why you exceeded the
criteria an...
D ’Do’s
 Estimate your BPO to be as close to the Sale Price as
possible (you are graded on this)
 Shoot for 95% to 105% ...
D ’tDon’ts
 Leave fields blank
Recycle your photos Every BPO should have a fresh set Recycle your photos. Every BPO shou...
D ’tDon’ts
 Guess on adjustments
 Guess on proximity
 Use generic or “canned” remarks
Be vague on repairs Be vague on ...
Fine TuningFine Tuning
C l Mi t d Fi ldCommonly Miss-entered Fields
 Functional Utility
 ENTRY = Poor, Average, Good
NOT G El t i W t NOT Gas,...
C l Mi t d Fi ldCommonly Miss-entered Fields
 Location
 ENTRY = Urban, Suburban, Rural
 NOT Good, Fair, Poor
 Used to ...
A t KAcronyms to Know
 CMA – Competitive Market Analysis
 BPO – Broker Price Opinion
 DNA – Property stats (sq ft beds ...
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What they didn't teach you at bpo bootcamp

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What they didn't teach you at BPO Bootcamp

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What they didn't teach you at bpo bootcamp

  1. 1. What They Don’t Teach You at BPOTeach You at BPO Bootcampp Learn the inside secrets on performing impressive evaluations
  2. 2. I thi iIn this session:  How to get MORE business doing BPO’s  What Asset Managers & Investors look for  Do’s and Don’ts on evaluation  Info to fine-tune your BPO skills
  3. 3. M B iMore Business  Offer Free 2nd Opinion BPO To AMs you would like to work withTo AMs you would like to work with To AMs you currently work with Tell them to tell other AMs in the deptTell them to tell other AMs in the dept K k th i k ff ith S BPO Knock their socks off with a Super BPO
  4. 4. St i BPOStepping up your BPO  Quality Remarks  Don’t just use canned remarks  Use quality remarks that are unique to the property  Use remarks that show you know the local market  Don’t just say Comp 1 is similar to Subject in all areas  Talk about the busy 6 lane street behind the subject, or say that the closest shopping is 5 3 miles away Be specific about thingsthe closest shopping is 5.3 miles away. Be specific about things good or bad.  Accurate Distance Accurate Distance  Don’t just use ‘1 mile’ for all  http://www.gpsvisualizer.com/calculators
  5. 5. St i BPOStepping up your BPO  Quality Photos  Full set of photos  Shoot as wide angle as possible  Good lighting Good lighting  Include Bids on Recommended Repairs with your BPO  Immediately differentiates you from other agents Immediately differentiates you from other agents  Have detailed photos of the repairs  Turn Over Time  The quicker, the more impressive.  2nd Opinions are normally needed on a rush basis
  6. 6. Asset ManagersAsset Managers
  7. 7. I id SInside Scoop  They have hundreds to review  You likely can get away with shortcuts/errorswith shortcuts/errors  Stay away from this temptation, it will haunt you later!
  8. 8. AMs closely look at 1. Suggested Prices vs. Comp. Prices 2. Your Summary Remarks2. Your Summary Remarks
  9. 9. I id SInside Scoop  AMs questioning a comp used in your BPO  Usually means your value is not synching well with the other reports  Simply ask the AM if you came in too low/high?  Why AMs call you to make minor changes  They have to reconcile 2-3 value reports  Varies based on client guidelines Varies based on client guidelines  It is easier for them to get you to change something than to track down a 2nd opinion BPO agent or an appraiser  Sometimes they are shy to full out ask, or beat around the bush and will vaguely ask you to revisit your valuesvaguely ask you to revisit your values  Just ask them casually “Did I come in too low?” They normally will tell you.  Help them feel comfortable, be accommodating on all changes
  10. 10. I id SInside Scoop  Remarks, Remarks, Remarks  If you are getting calls on If you are getting calls on other items on the report, you are most likely not writing enough explanation i th t tiin the comment section  Anything that is out of the norm, add an explanation
  11. 11. Investors, the Asset, Manager’s Bossg
  12. 12. I id SInside Scoop  Investors review the report in greater detail especially if thedetail, especially if the property lingers on the market  They audit because their money is on the line!
  13. 13. I id SInside Scoop  Will review tolerances  “Why comp #2 has 2 beds and our subject has 4?” W t d t il f i it ith bid t Want details of repair items with bids to cure  (impress them with bids upfront)  They will closely compare the original BPO to subsequent BPOs They will closely compare the original BPO to subsequent BPOs  Keep your BPOs archived for future reference  Have good reasons for major changes in value and back up f They will map comps for distance  Make sure you don’t make up distances
  14. 14. I id SInside Scoop  They will take offense to off color remarks Example: “S bj t t i“Subject property is located in an area with high crime rates andg gang activity.”
  15. 15. I id SInside Scoop ALTERNATIVES:  “This area is a much older neighborhood compared to most. Most home buyers are interested in newer neighborhoods“neighborhoods  “This area has a much lower price point than the median price range buyers are looking in“  “A considerable amount of graffiti was noticed on buildings and walls in immediate proximity to the subject” TIP: Show photos of neighborhood – street view, entry signs, graffiti
  16. 16. Do’s and Don'tsDo s and Don ts
  17. 17. D ’Do’s  Stay within general tolerances Use comps within 10% of price of subjectUse comps within 10% of price of subject Use comps within +/-10 yrs old Use comps within 20% in living areaUse comps within 20% in living area Use comps less than 3 months old if possible, 6 months max6 months max
  18. 18. D ’Do’s  If you must exceed one of the BPO guidelines, ALWAYS make sure to comment as to why you exceeded the criteria and why it is necessary  Try to anticipate what the other BPO or Appraisal will come in at and be no more than 15% difference  This will cause list price to be too high because they will normally go with the higher BPO or appraisal price if the differential is too great  Remember the purpose the BPO is to be realistic and accurate Remember the purpose the BPO is to be realistic and accurate in initial evaluation, you get graded on initial BPO value VS. sales price at the end
  19. 19. D ’Do’s  Estimate your BPO to be as close to the Sale Price as possible (you are graded on this)  Shoot for 95% to 105% of your original BPO price.  This can be tricky when you have rapid depreciation or appreciation M k dj t t i t t Make sure your adjustments are consistent  Adjustments can be fluctuated depending on how you need the values to adjust for.  Example: You have competition on same street listed at $120K Example: You have competition on same street listed at $120K. Sold comparables found within 2 months can only justify $145K. You can use the adjustments to your advantage.
  20. 20. D ’tDon’ts  Leave fields blank Recycle your photos Every BPO should have a fresh set Recycle your photos. Every BPO should have a fresh set of photos.  Provide insufficient photos  Get close ups of damage, show the busy street over the back wall, photo the graffiti up and down the streetp g p  Recycle your comps on subsequent BPOs
  21. 21. D ’tDon’ts  Guess on adjustments  Guess on proximity  Use generic or “canned” remarks Be vague on repairs Be vague on repairs  Instead of “Replace carpet” be more descriptive  i.e. “Extremely soiled, urine saturated carpet replacement”  Forget to update repairs & adjustments if improvements are made  You look like a dummy if you replace all carpet and paint in a home and then on your updated BPO you still say it needs those repairs
  22. 22. Fine TuningFine Tuning
  23. 23. C l Mi t d Fi ldCommonly Miss-entered Fields  Functional Utility  ENTRY = Poor, Average, Good NOT G El t i W t NOT Gas, Electric, Water  Used to describe the functional use of the house  i e 3/1 house is out of date i.e. 3/1 house is out of date  i.e. no space for washer/dryer  Data Source or Verification  ENTRY = MLS or County tax records
  24. 24. C l Mi t d Fi ldCommonly Miss-entered Fields  Location  ENTRY = Urban, Suburban, Rural  NOT Good, Fair, Poor  Used to determine how far comps can be away  1 mile for Urban  5 miles for Suburban 5 il f R l 5 miles+ for Rural  Site  ENTRY = slopped, level etc  NOT Good, Fair, Poor
  25. 25. A t KAcronyms to Know  CMA – Competitive Market Analysis  BPO – Broker Price Opinion  DNA – Property stats (sq ft beds baths) DNA Property stats (sq ft, beds, baths)  CMV – Current Market Value  GLA – Gross Living Area DNB D N t B DNB – Do Not Buy  FROG – Finished Room Over Garage  PUD – Planned Unit Development  HR/LR – High Rise / Low Rise  FMR – Fair Market Rents

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