How to earn income from Broker price opinions?
Earning by providing Broker Price Opinions (BPOs) can be a great way for real estate agents or brokers to supplement their income. Here’s a step-by-step guide on how to get started and earn through BPOs:
1. Get Licensed
- In most states, you must be a licensed real estate agent or broker to perform BPOs. Ensure your license is current and in good standing with your state’s real estate commission.
2. Get Experience
- Before starting with BPOs, you should have some experience in real estate, especially in property valuation and comparative market analysis (CMA). Familiarize yourself with how to price properties accurately based on market trends, property condition, and comparable sales.
3. Register with BPO Companies
There are companies that act as intermediaries between lenders, financial institutions, and real estate professionals. You can sign up with them to start receiving BPO assignments.
Some well-known BPO companies include:
- Clear Capital
- Altisource
- BrokerPriceOpinion.com
- Res.Net
- Valuation Partners
These companies often have online platforms where you can register as a broker or agent, complete a profile, and start receiving assignments.
4. Build a Network
- Banks, mortgage companies, and asset management firms are common clients that need BPOs. Build relationships with these institutions, let them know you offer BPO services, and provide quality work to gain more assignments.
- Networking with other real estate professionals can also help you learn about new BPO opportunities.
5. Complete BPO Certifications
- Some companies may prefer or require BPO professionals to have specialized certifications. Completing BPO training or certification can help you stand out and increase your credibility.
- You can get a BPO certification through the National Association of Realtors (NAR) or other recognized institutions that offer courses on property valuation.
6. Understand the Fee Structure
- BPO fees vary depending on the complexity of the work. Typically, BPOs can pay between $30 and $150 per BPO.
- Exterior BPOs (drive-by BPOs) typically pay less (around $30-$50).
- Interior BPOs that involve inspecting the inside of a property may pay more (up to $100-$150).
- Rush jobs may pay a premium.
7. Work Efficiently
- To maximize your earnings, you’ll need to complete BPOs efficiently. The faster you can do them without compromising on accuracy, the more assignments you can take on.
- Use technology and apps that help streamline the process of taking photos, filling out forms, and submitting reports.
8. Track Your Finances
- Keep careful records of your income and expenses. You may have to pay for travel, camera equipment, or other business-related costs, which can be deducted from your taxes.
9. Build a Reputation
- Accuracy and timeliness are key to getting repeat business. Ensure you provide accurate property valuations, complete assignments on time, and communicate professionally with clients.
10. Scale Up Your Business
- Once you’ve established yourself, you can scale up by accepting more BPO assignments, hiring assistants to handle administrative tasks, or even focusing on higher-paying markets or specialized BPOs.
By consistently delivering high-quality work, you can turn BPOs into a reliable source of income as part of your real estate business.
