How to perform an indoor BPO
The most difficult task of the interior BPO may be to access the house. The property may be unoccupied or occupied by the tenant or the owner. If it is unoccupied, the house usually has a safe or a key above. If you are busy, an appointment must be made to enter. To gain access in either case, you must contact the real estate agent who is overseeing the property. Your local MLS will have your contact information, or the appraisal company should provide it. That agent will provide codes to close the boxes or offer to make an appointment with themselves, the owner or, in some cases, both. Most appraisal companies will pay real estate agents between $ 65 and $ 75 per interior BPO for the additional work involved.
Tips and Tricks for Photographing an Indoor BPO
1. Don’t delay
Appraisal companies typically allow up to 72 hours for an indoor BPO and will pay you one and a half times more than an outdoor one. The problem lies in the fact that gaining access to the property is sometimes out of your control when a third party is involved. Avoid procrastination and schedule the appointment well in advance of the scheduled date. If the realtor has to cancel, he still has time to reschedule and complete the interior BPO on time.
2. Be firm and in control
Always remember that you work for the appraisal company, not for the realtor. When contacting the realtor in charge of the property, be firm in scheduling appointments. If you have to meet with the realtor or landlord, let them know when you will be in the area for the indoor BPO rather than asking what time they are available. This method will work most of the time. You can keep your sanity by monitoring multiple appointments throughout the day. Most agents are willing to stick to their schedule because they cannot receive a commission without you completing the internal BPO.
3. Politely ignore the real estate agent
If you’re meeting with the realtor, you’ve likely prepared a 10-page summary of facts and documentation on why the property should be valued at the lower end of the market. You will most likely receive an exaggerated CMA and repair estimates for the home. They will talk about it throughout the inspection to try to manipulate the value of BPO inside. Inspect the house yourself and observe only what you personally observe. Don’t just take their word for it. They’re just pressuring you to price the indoor BPO low so the bank will approve your short sale and they walk away with a commission.
4. Make a note of visible damage
An interior BPO will need to address both interior and exterior repairs. It is very important to photograph and document all damage. The lender will want the report to reflect what is seen in the images. Repairs will ultimately affect the current value of the interior BPO. Make a note of the repairs on the report when they are present in the home.
5. Double check your work
Valuation companies are quite meticulous when it comes to photographs. If any images are missing or unclear, you will need to go back and take what was lost. You’ll waste a lot of time rescheduling an indoor BPO, and the other realtor won’t be a happy camper. This is not practical, so double-check your camera images to make sure you have what you need before you leave.
Generally, you should complete the interior BPO portion of the report after taking pictures of the house. Implementing this method will result in values as-is more accurate if you take a personal look at the home and neighborhood before reporting. In addition, the inspection will also be fresh in your memory.
To run an indoor BPO report, you need to search for six comparable houses (comps) in the immediate area of the subject. Three comps must be sell comps; the other three must include compilations. The selection of compositions is determined using a variety of similarities to the property of the subject. These similarities can include size, age, and location, to name a few. Adjustments in the internal reports are also necessary and important to arrive at an exact value as is.
Interior orders are more work than exteriors, but ultimately they are more money. The main differences between the two reports will be obtaining access to the home and reporting any damage that may be found inside or outside the home. Pretty easy for an extra $ 25.