The Power of BPOs
Are you looking to make extra income as a real estate agent? Do you need a part-time real estate job? Performing BPOs can be a good way to utlize your real estate license, learn your local real estate market and earn extra cash at the same time.
The article below was written by my BPO instructor and mentor, Angela Cooper. If you are looking to learn BPO's and how to become a BPO agent then keep reading.
This post may contain affiliate links, which means I may receive a commission, at no cost to you, if you make a purchase through a link. Please see my full disclosure for further information.
So... Do You Want to Be A BPO Agent?
I can remember back in 2003-2004 when times got really rough. I was introduced to Broker Price Opinions; thank God for my “could have been” sister-in-law!
What are Broker Price Opinions (otherwise known as a BPO)?
In the real estate industry, we call these “mini appraisals” and there’s no appraisal license necessary. Many states honor them coming from real estate brokers and agents. There are only a few states that don’t.
As a real estate agent most of us are accustomed to doing a comparative market analysis or CMA. The broker price opinion is essentially a CMA with additional pages in the report. The report is always entered through the client portal - similar to how you would enter data into your local MLS.
In order to do broker price opinions, you must be accepted by a valuation company. There are many valuation companies throughout the United States. These valuation companies are suppliers for mortgage companies and banks. When licensed agents are accepted to do BPOs for these companies we become the third-party vendor.
Before you start any endeavor in life, you must have a “WHY.” It’s basically the same with BPOs. My mentor used to tell me that my why should be so big that it makes me cry. When I discovered broker price opinions, my why was crucial and it was constantly making me cry.
Be prepared to answer that question as you prepare to become the best BPO agent you can be.
Why are you doing BPOs?
When I first started doing BPOs, my new power wash company nearly fifibroke me financially; I didn't have any money to pay for groceries or anything really.
One day I was talking to my “could have been” sister-in-law and she said “why don't you do BPOs?” I remember it as if it were yesterday, I said “what are BPOs?” Of course she went on to explain.
That’s when my real estate career shifted. I had been doing a sale here and a sale there but, I was not making any real money. I signed up with a few BPO companies and found myself going from a few $100 a month to a few $1,000 per month - just doing Broker Price Opinions.
Why do I tell you this story?
I tell you this story because, some of you might be facing the same obstacle; it was a struggle for me in the beginning trying to sell real-estate! As a new real estate agent, you will not walk into an office full of clients. It takes time to grow your clientele base.
How will you pay bills? How will you take care of your life’s basic necessities as you wait on new clients to show up? What will you do in the meantime? If you get a new client, it will take at least 30 days to close on a traditional real estate transaction. Additionally, when you do capture a new client and close the deal, guess what? You still must pay your broker a certain percentage; some brokers also require agents to pay a desk fee, while many require you to do both!
That's where BPOs come into play. You can literally do enough BPOs to pay a mortgage, a car note, pay for daycare, or whatever is hot on your plate. For me, at that time, I needed to buy groceries! BPOs can help you pay for much of life’s hiccups!
Click here if you want to see how to become a real estate agent in Florida so that you can start making BPO money!
A BPO Mindset
It takes a special mindset to do Broker Price Opinions. I like to call this a sense of Next Level Thinking. You cannot soar like an eagle if you have turtle mentality. Turtles can only see a couple inches above the grass. Eagles fly high and can see that the world is full of never- ending possibilities.
You must have that eagle mentality and think like a business owner when you set out to do BPOs. Be ready to train your brain on being a positive thinker and becoming unstoppable.
Are BPOs legal?
BPOs are legal in many states. However in some states they are not legal. As you go through the webinar and especially when you join the Facebook group Broker Price Opinion, you will find the list of states and how they recognize the broker price opinion.
Are BPOs for brokers only?
BPOs can be performed by brokers and by licensed real estate agents. You cannot perform BPOs if your real estate license is inactive. If you work for a brokerage such as RE/MAX or Keller Williams, be sure to inquire as to how much of a split they will want on your BPO income. If you are in Central Florida and looking to join a brokerage that works with BPO agents click here.
Click here if you want to see the steps to becoming a real estate agent in Florida?
How to work for BPO companies?
Many think you need special certifications to do Broker Price Opinions. While being certified is a plus, it is not a must.
Making yourself available for BPOs is quite simple. All you do is get on someone's list! When you watch the webinar “The Power of Broker Price Opinions” be sure to stay until the end. At the end of the webinar, you will get a free list of 10 BPO companies to apply for work.
The goal is to be so proficient at doing Broker Price Opinions that every company you work will want you on as a “preferred” vendor. Set your goal so big that you miss the target, but you will land in a perfect spot.:-)
Hope to see you soon,
Angela Cooper, The BPO Coach
“I think goals should never be easy, they should force you to work, even if they are uncomfortable at the time.” —Michael Phelps
Click here if you want to see the steps to becoming a Florida real estate agent?
Click here if you are in Central Florida and looking for the top brokerage to join.
Still have questions or feedback about doing Broker Price Opinions? Share your comments below.