Many 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. To process BPOs for banks, these agents typically do the following:
Drive to the property and take exterior photos of the property and it's neighborhood
Research the neighborhood in the MLS and provide a CMA (comparative Market Analysis)
Submit the CMA and photos to the bank's website.
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.
Banks also prefer BPOs from agents because many times agents will perform these BPOs for free if they are listing REO properties for banks. these agents process BPOs in an effort to get their name in front of lenders and asset managers that make decisions on which agent will get the listing. Doing a great job on BPO's can mean the agent will begin listing properties for banks. Waiving their $50 fee can mean thousands of dollars in future commissions.
How to Become a BPO Agent
I'm asking every day how to become a BPO agent for lenders and asset managers. There's no secret to it, you simply need to find the bank's, register on their websites and do a great job on any BPO's you do get assigned. Banks remember which agents do a good job and which don't.
A few tips:
-Find as many banks as possible: Register with 100+ banks. Not all lenders will have BPO's in your area every month. Increase your chances on being assigned BPO's by purchasing a bank list and signing up with every bank.
-Do a great job on every BPO: Make the asset manager look great. A well done assignment can get your name remembered and selected for the next assignment in your area.
-Thank the asset managers for the assignment. A simple hand written card can go a long way to receiving more BPO's and eventually listing REO properties.
Benefits of Becoming a BPO Agent
When you become a BPO agent, you receive a great deal more than just a $50 paycheck for each assignment. Many agents don't understand that processing BPO's for banks can open the door to a flood of additional income:
-Leveraging your BPO experience can give you the experience to begin listing properties for banks.
-Once you have REO listings, you can begin marketing to buyers as a "Foreclosure Expert." A listing is great, but 5 buyers calling you on that listing is even better.
-Listing REO properties for banks can position allow you to yourself as the listing expert in an area. You can market your bank owned experience and help sellers with short sales and other bank related sales needs.
The list goes on, but the first step is finding a good list of banks and registering on their websites as a BPO agent. Good Luck, and never give up!
My team processes countless BPOs and lists over 100 REO properties each year. We share our knowledge to help you become a BPO agent on our website, blog and review sites. You can learn more about how to become a BPO agent here.