BPOs, Short Sales, Foreclosures Oh My.

My office has recently started working with Broker Price Opinions (BPOs).  Before you are sent any BPO requests, you have to first sign up as a vendor with various BPO providers.  Well, that alone can be a task.  Some companies want minimal information about yourself and your experience, while other companies want your resume, three references, your driving record, and uploaded copies of your real estate license as well as your E & O insurance.  After you complete all of that, expect about a month later to start receiving BPO requests.  If you have been approved that is.  Some may not approve you due to lack of experience, or some may not approve you because they are not in need of any other agents in the particular zip codes that you indicated a business interest to perform BPOs.

This past week, one agent in the company received several BPO requests.  I was shocked at the number the agent received.  I will say the number was in the double digits and all within about a four day period. The hope, obviously, is that the BPOs completed by the agent(s) will eventually turn into listings.  I say you wont become rich completing BPOs, but I think it can do one of two things for you (if not both)...1) gives the agent experience in different neighborhoods that he or she may not be accustomed to visiting, thus increasing an agents knowledge of the inventory, and 2) can possibly turn into a listing.

With the number of short sales increasing, expect BPOs to increase as well.  Every indication that I have heard is that we should expect to see foreclosures to continue to rise (with regards to the residential market).  If that is true,  then the need for BPOs will too increase.  A great way to increase your business and experience: Start completing BPOs.  As the markets shifts, a good agent will shift with the market and redirect to have that pipeline full, or at least not empty. 

I would like to hear from others who have done BPOs or are currently completing BPOs as part of their business and I would like to know what your thoughts on them are and what percentage of them have turned into listings for you.