A broker price opinion or BPO is a broker or agent’s opinion of the value of a piece of real estate. Broker price opinion orders are requested by banks, lenders, investors and anyone who needs to know the value of a particular real estate property.
What Is Broker Price Opinion?
Typically broker price opinion orders are placed in quantity; for example, when a particular bank has group of mortgages that are defaulting and they need to determine the value of each of the houses. This could be for any number of reasons, like if they were going to sell a group of defaulting mortgages to one of their subsidiary companies. The BPOs would be ordered on all of the properties to determine the value of each of the homes individually as well as the price of the entire package of homes. There are many other reasons that broker price opinion orders are required, such as refinances, short sales, and foreclosures.
Broker Price Opinion Density
It is reported that there will be 8 million foreclosures in the next 4-5 years and there is a reported 650 billion dollars in shadow inventory in the United States. In case you’re not familiar with shadow inventory, shadow inventory is property that is distressed but has not yet been foreclosed on; for example, houses on which the homeowners have not made a payment in 6-36 months and the lender has not foreclosed yet.
Broker Price Opinion Income
The broker price opinion industry will be a 2 billion dollar industry over the next 4-5 years. Real estate professionals can build a six figure income by building a BPO business, not to mention the incredible doors this opens to listing the foreclosed properties, which is another incredible stream of income.
If you are a real estate professional interested in claiming your stake in the 2 billion dollars that will be paid to real estate professionals nationwide over the next 4-5 years, the best training to get help you begin taking advantage of the broker price opinion industry is available at the BPO REO Academy.