Writing a killer BPO can mean the difference between a great real estate career and barely getting by in today’s market. With approximately 40% of the transactions in the US last year coming from the distressed market segment, the BPO is a vital business tool for today’s real estate professional.
The next time you’ve got a BPO to write, grab a coffee and remember these 3 tips.
- Use the comments section. Don’t just list the facts here, tell the story of the property. Have a conversation with the asset manager who will be reviewing the BPO. This is your chance to stand out and make your case for the pricing strategy you are suggesting. Every house has a story, the challenge is to figure out what the story is and communicate it within the BPO format.
- Choose your comparables carefully and add explanations. If the house is bigger or smaller, newer or older, has different features or whatever, make sure you highlight and explain these factors and how you accounted for them in your overall pricing evaluation.
- If the property has been on the market previously or even if it is the first time on the market it is extremely beneficial to add other agents comments to support your recommendations. This is an added validation that can go a long way.
BPO’s are not rocket science. But they are time-consuming and usually not one of our favorite activities. Motivational speakers often tell their followers that if you are going to do something– do it 110%. I think that advice applies to the BPO. Raise the bar each time you start a BPO and I guarantee you’ll be pleasantly surprised with the outcome!
” companies are getting very demanding when it comes to request a BPO—the want us to do almost a formal appraisal…”