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What Is Involved in an Internal BPO or Broker Price Opinion?

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We can begin by stating that all the requirements of a drive-by BPO would also be a part of an Internal BPO. However, an interior BPO might require that you verify things like square footage and room count rather than estimate them. Of course, there will be a requirement for photos of the interior rooms of the home.

Unless the home is unoccupied, an internal BPO will likely involve contact with the homeowner or a tenant. If the BPO is for refinance purposes, this likely will not be an issue or problem. However, if a pre-foreclosure situation exists, care must be exercised in personal contact situations. Different lenders and loss mitigation companies will have different policies in this respect. Obviously, the best situation would be that you are expected and treated with courtesy.

As we said, you will definitely be doing all of the tasks involved in a drive-by BPO, and additionally some or all of the following:

  • Individual room measurement.
  • Overall square footage measurement.
  • Inspection of interior features conditions.
  • More thorough value adjustments in comparables.
  • Individual photos of interior damage.
  • Repair estimates.
  • Cleaning or trash out estimates.
  • Of course, in internal BPOs, more work is required so the compensation is greater. The ordering company may require other services, so it's hard to estimate what you would be paid. However, the range of payment for internal BPOs is frequently between $100 and $175. Additional services that might be required, frequently prepaid by the broker, are:

  • Re-key locks.
  • Winterization.
  • Trash removal.
  • Lawn care and snow removal.
  • Damage repairs.
  • Secure the property.
  • Boarding up the property.
  • Generally, BPO customer will require that the real estate broker pay these expenses out of pocket. Reimbursement can frequently take 30 to 60 days. When foreclosures are up, a great many real estate professionals generate excellent income from BPOs. The broker should have good billing practices and follow-up in order to maintain profitability.

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