Broker Price Opinions (BPO's) are an area that I stumbled on accidentally. One day I was sitting in my Broker's office doing floor time when the phone rang and to my surprise it was an asset management company. They were looking for someone to do a BPO on a property in a small town close to my market and they were willing to pay me $50. I thought what the heck, I had free time that day and could use the money. So I completed it and from that day have been somewhat hooked.
I have signed up with several different companies to do work and now average about one a week. They range in price from $45-$80 depending on the degree and depth that the inspection requires. Drive by's average about $50 and interiors $75 or more. I have also been able to negotiate with the asset management companies for increased fees if they had a quick turn around time or if the property is rural and required some travel time. From my experience I have found that they are more than willing to pay if I ask.
Lately though I've begun to get frustrated because after the BPO is submitted it always seems like the asset management companies want additional detail or new comps. I live in rural Minnesota were the market is small so finding comps sometimes is challenging. I have found that doing a BPO is more like an art rather than a science.
So my question is, does anyone have any ideas about how to get the analytical (science) asset managers to accept my artful based BPO's? Lately it seems like I'm spending more time correcting the anaytical issues from the asset managers, than I am driving to the property, taking pictures, and looking up comps.
What do you think, are BPO's a waste of time?
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