The short answer
How to do a BPO: accept the order, read the client's instructions, visit the home (drive-by or interior), shoot the full photo set, grade condition, pick three closed and three active or pending comps, adjust them, list repairs with costs, give as-is, repaired and quick-sale values, write plain comments and upload before the deadline.
The rest of this page is the detail behind each step, plus a comps checklist.
Step by step: how to do a BPO
Here's how I do it, every order, the same way.
- Accept fast. Many orders go to the first agent who accepts. Check the address, due date and fee before you click.
- Read the whole order. Exterior or interior. Photo count. Comp distance and date limits. Which values they want. Special questions. Some clients reject a BPO for one missed instruction.
- Check the subject in MLS and public records. Beds, baths, square feet, year built, lot, last sale, HOA. Note any mismatch between records and what you see. The client wants to know.
- Visit the home.
- Drive-by (exterior): stay on the street or where the order allows. Don't walk the yard. Don't knock unless told to.
- Interior: set access first (lockbox code or appointment). Walk every room. Look at roof, furnace, water heater, electrical panel, water damage, mold signs, missing fixtures.
- Shoot the photo set. Typical list: front, both sides if visible, street view both ways, address number, and any damage. For interior: every room, kitchen, baths, systems and every repair item. Follow the order's count. Keep files under the portal's size limit, often 1 MB.
- Grade condition honestly. Use the client's scale. If you can't see something on a drive-by, say "not visible from street." Don't guess.
- Note the market. Trend (up, flat, down), supply, days on market, how many competing REO or short sale listings nearby, the neighborhood value range, HOA fees. Most asset manager forms ask for all of it.
- Pick your comps. Three closed sales and three active or pending listings, unless the order says otherwise. Use the checklist below.
- Make adjustments. Adjust each comp to the subject for size, beds, baths, garage, basement, condition, age, lot and location. Keep adjustments reasonable and explain any big one.
- List repairs with costs. Item by item. Roof, paint, flooring, appliances, cleanout. Use local cost ranges you can defend.
- Give the values. As-is value. Repaired value if asked. Quick-sale or 90-day value if asked (the price likely to sell in a shorter marketing time). Suggested list price if asked. Make sure the numbers fit your comps.
- Write the comments. Short and plain. Why you chose the comps, why the values differ, anything odd about the home or market.
- Proof and upload. Check address, photos, math and every required field. Upload in the client's portal before the deadline.
- Handle revisions the same day. Answer what they asked. If you change a value, explain why. If you don't, explain why with comps.
BPO comps checklist
| Check | What to look for |
|---|---|
| Distance | As close as you can. Same subdivision first. Follow the order's mile limit and explain any comp outside it. |
| Date | Closed sales as recent as you can, often within 90 to 180 days. Follow the order. |
| Size | Square feet close to the subject, often within about 20%. |
| Age | Year built close to the subject. |
| Style | Same type: ranch with ranch, two-story with two-story, condo with condo. |
| Beds and baths | Close match, then adjust. |
| Basement and garage | Same kind if you can. Adjust for finished vs unfinished. |
| Condition | Note distressed comps. Mix in a fair-market sale if the client wants as-is and repaired values. |
| Sale type | Mark REO, short sale or standard. The client cares. |
| Active and pending | Real competition today. Same rules for distance, size and style. |
| Bracketing | At least one comp bigger and one smaller, one better and one worse, if the market allows. |
As-is, repaired and quick-sale values
These three numbers answer three questions.
- As-is: what it would sell for today, in the shape it's in.
- Repaired: what it would sell for after the repairs on your list.
- Quick-sale: what it would likely sell for in a short marketing time, often 30 to 90 days.
The gap between as-is and repaired should be close to your repair total, sometimes a bit more or less. If the gap is way off, the client will ask why.
How to explain it to your client
Here the "client" is the asset manager or the reviewer who sent back a revision.
"I used three closed sales within a mile in the last 120 days, all the same style and close in size. Two are standard sales and one is an REO, so I adjusted that one for condition. The repaired value is higher by about the repair total. If you'd like me to swap a comp, tell me which one and I'll update it today."
Watch-outs
- Don't hit a target number. If anyone pushes a value, write what the market supports and keep your notes.
- Don't trespass. On a drive-by, the order sets what you can do. Stay on the street.
- Watch for occupants. If someone is home, be polite, don't argue, don't discuss the loan and leave if asked.
- Check every field. A blank box is the most common reason for a revision.
- Don't call it an appraisal. It's a broker price opinion. Under 12 U.S.C. 3355 it can't be the primary basis of value for a purchase mortgage on a consumer's main home.
- Keep the file private. Owner names, loan numbers and photos stay with the client.
Sources
Further reading
Keep going
Want the whole system? The BPO & REO Kit gives you the asset-manager outreach playbook, six email templates, the BPO checklist, photo shot list, comps worksheet, REO listing checklist and a tracking sheet.
This is training for real estate agents. It isn't legal, tax, lending or appraisal advice. Program rules change; check the official source. Check with your managing broker.
BPO & REO Kit
Go after BPO work and bank-owned listings the organized way: who to contact, what to send, when to follow up, and how to do the work.
$79 kit / $199 done-for-you setup (proposed)
See BPO & REO KitQuestions
How many comps do you need for a BPO?
Most forms ask for three closed sales and three active or pending listings. Follow the client's order if it asks for more.
How far can BPO comps be from the subject?
It depends on the order. Stay as close as you can and explain any comp outside the client's distance limit.
How long does a BPO take to complete?
Exteriors commonly turn in 24 to 72 hours and interiors in two to five days, set by the order's due date.
What is a quick-sale value on a BPO?
It's your opinion of the price likely to sell the home in a shorter marketing time, often 30 to 90 days.
What should I do when a BPO comes back for revision?
Fix it the same day. Answer exactly what they asked and explain any value you keep with comps.
Brian Lee Burke is the founder of PadLeaders, a Colorado real estate broker licensed since 2003, team leader of The Kenna Group at Keller Williams DTC (formerly Kenna Real Estate Group) and the author of Mastering Real Estate and The Real Estate Playbook. More about Brian.
- Agent training by Brian Lee Burke, The Kenna Group at Keller Williams DTC
- Colorado Division of Real Estate (https://dre.colorado.gov)
- 12 U.S.C. 3355: Broker price opinions (Cornell LII)
- Colorado Division of Real Estate
- REO and BPO partners, The Kenna Group
- Order a BPO in Denver County