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Why Banks Need BPO Agents
What is a BPO Agent?
Many agents can go their entire career without fully understanding the role BPO
agents play for banks, lenders and asset managers. If that describes you, you're
not alone.
To become a BPO agent, there are no special certifications or licenses needed. A
BPO agent is simply an agent that has registered with a bank and has agreed to the
terms and rule set forth by the bank. Typically a BPO agent earns between $50 and
$100 for each BPO they process. To process BPOs for banks, these agents typically
do the following:
- Drive to the property and take exterior photos of the property and it's neighborhood
- Research the neighborhood in the MLS and provide a CMA (comparative Market Analysis)
- Submit the CMA and photos to the bank's website.
Why Bank Need BPO Agents
When a bank acquires a foreclosed property, rather than hire an appraiser to perform
a full blown appraisal which usually costs over $300, banks can hire a real estate
agent to give a quick estimated value of a home for much less. While an appraisal
measures exact square footage, property condition, title history, etc, a BPO provides
information for a bank that lets them get an estimated sales price from an agent
with expertise in the area.
Banks also prefer BPOs from agents because many times agents will perform these
BPOs for free if they are listing REO properties for banks. these agents process
BPOs in an effort to get their name in front of lenders and asset managers that
make decisions on which agent will get the listing. Doing a great job on BPO's can
mean the agent will begin listing properties for banks. Waiving their $50 fee can
mean thousands of dollars in future commissions.
How to Become a BPO Agent
I'm asking every day how to become a BPO agent for lenders and asset managers. There's
no secret to it, you simply need to find the bank's, register on their websites
and do a great job on any BPO's you do get assigned. Banks remember which agents
do a good job and which don't.
A few tips:
- Find as many banks as possible: Register with 100+ banks. Not all lenders will have
BPO's in your area every month. Increase your chances on being assigned BPO's by
purchasing a bank list
and signing up with every bank.
- Do a great job on every BPO: Make the asset manager look great. A well done assignment
can get your name remembered and selected for the next assignment in your area.
- Thank the asset managers for the assignment. A simple hand written card can go a
long way to receiving more BPO's and eventually listing REO properties.
Benefits of Becoming a BPO Agent
When you become a BPO agent, you receive a great deal more than just a $50 paycheck
for each assignment. Many agents don't understand that processing BPO's for banks
can open the door to a flood of additional income:
-Leveraging your BPO experience can give you the experience to begin listing properties
for banks. -Once you have REO listings, you can begin marketing to buyers a a "Foreclosure
Expert." A listing is great, but 5 buyers calling you on that listing is even better.
-Listing REO properties for banks can position allow you to yourself as the listing
expert in an area. You can market your bank owned experience and help sellers with
short sales and other bank related sales needs.
The list goes on, but the first step is finding a good list of banks and registering
on their websites as a BPO agent. Good Luck, and never give up!
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