How to perform an internal BPO

The most difficult task for the interior BPO may be gaining access to the home. The property may be vacant or occupied by the tenant or owner. If vacant, the house usually has a lock box or key above. If it is busy, an appointment must be made to enter. To gain access in either case, you must contact the real estate agent overseeing the property. Your local MLS will have your contact information, or the appraisal company should provide it to you. That agent will provide codes to lock boxes or offer to set up an appointment with themselves, the owner, or in some cases both. Most appraisal firms will pay real estate agents between $65 and $75 for interior BPOs for the additional work involved.

Tips and Tricks for Interior Photography and BPO

1. Don’t delay

Appraisal companies usually allow up to 72 hours to do an inside BPO and will pay you one and a half times more than an outside. The problem lies in the fact that gaining access to the property is sometimes out of your control when a third party is involved. Avoid procrastination and make the appointment well before the due date. If the realtor has to cancel, you still have time to reschedule and complete the interior BPO on time.

2. Be assertive and in control

Always remember that you are working for the appraisal company, not the real estate agent. When contacting the real estate agent in charge of the property, be assertive when scheduling appointments. If you have to meet with the real estate agent or owner, let them know when you’ll be in the area for interior BPO instead of asking what time they’re available. This method will work most of the time. You can keep your sanity by keeping track of multiple appointments throughout the day. Most agents are willing to work around your schedule because they cannot receive a commission without you completing the in-house BPO.

3. Politely ignore the realtor

If you are going to meet with the real estate agent, they will most likely have prepared a 10 page summary of facts and documentation on why the property should be valued at the lower end of the market. You will most likely receive an inflated CMA and repair estimates for the home. They will speak your ear throughout the inspection to try to manipulate the inside BPO value. Inspect the house yourself and only write down what you personally observe. Don’t just take their word for it. They are just pressuring you to price the inland BPO low so the bank will approve your short sale and they walk away with a commission.

4. Take note of visible damage

An interior BPO will need to address both interior and exterior repairs. It is very important to photograph and document all damage. The lender will want to see that the report reflects what is seen in the pictures. The repairs will ultimately affect the current value of the interior BPO. Make a note of any repairs on the report when they are present at the home.

5. Double check your work

Appraisal companies are pretty meticulous when it comes to photography. If images are missing or unclear, they will require you to go back and grab what you missed. You’ll waste a lot of time rescheduling an in-house BPO, and the other realtor won’t be a happy camper. This isn’t practical, so double-check the footage on your camera to make sure you have what you need before you leave.

pulling comparables

In general, you should complete the interior BPO portion of the report after taking pictures of the home. Implementing this method will result in more accurate actual values ​​if you personally observe the home and neighborhood before reporting. In addition, the inspection will also be fresh in your memory.

To make an interior BPO report, you must find six comparable houses (comps) in the immediate area of ​​the subject. Three comps must be dirty comps; the other three should be listing comps. The selection of compositions is determined using a variety of similarities to the property in question. These similarities can include size, age, and location, to name a few. Internal reporting adjustments are also necessary and important to arrive at an accurate current value.

Inside orders are more work than outside orders, but ultimately more money. The main differences between the two reports will be obtaining access to the home and reporting damage that may be found inside or outside the home. Pretty easy for an extra $25.