Is a BPO certification required to do BPOs

NABPOP is often asked “Is a BPO certification required to do BPOs?”

NABPOP’s official response to this question is IT SHOULD BE

NABPOP strongly recommends any BPO customer should demand a BPO certification and strongly recommends agents and brokers to become BPO certified – even if you never do a single BPO, pricing and valuation skills are a good thing in real estate.

If you are asking as a customer, you can and should demand a BPO certification. Why, because it’s a smart thing to do. In any other circumstance where you have nothing else to go on (knowledge of competency, experience etc.) and you are presented with the choice of having work done by a certified person or a non-certified person, who should you pick? If you are presented with competent and experienced choices and the only difference is certified vs non-certified, who should you pick? You have no risk nor obligation whatsoever by asking for a BPO certified agent or broker. If you don’t ask for a certification, you may be getting your valuation work done by a fly by night agent or broker – keep your fingers crossed, it might work out.

If every BPO customer demanded a certification, then the answer is Yes a certification is required – and rightfully so!!!! This would make the world a better place.

If you are a broker or agent asking “Is a BPO certification required to do BPOs?” You are essentially asking “is it a requirement for me to develop myself professionally and go through a training program which teaches me how to do my job more proficiently and have a mechanism to display I have achieved the requisite knowledge to perform in a competent manner”. The answer is No, you don’t have to. It’s not a law, but it’s a very good idea and getting certified will save you a lot of time and frustration.

If you are looking for a way to make a quick buck, performing BPOs is not a good way to make a quick buck. There is a steep learning curve and the industry is relatively a zero tolerance industry. It takes a while to get into the industry and get set up. The NABPOP BPO certification was designed to speed you through the learning curve and NOT make the rookie mistakes. If you never do a single BPO, you will learn how to accurately and efficiently evaluate the market, value houses, and the relevant amenities and render a price opinion. This alone is a highly desirable skill for any real estate professional regardless of their affiliation to the BPO industry.

If you are looking to make a quick buck in the BPO industry, NABPOP invites you to not bother because there are plenty of other quick buck opportunities in real estate. Fly by night agents and brokers bring the BPO industry down. Agents and brokers who are serious enough to go through a certification process are the types of agents and brokers the BPO industry needs and is looking for.

So to answer the question “Is a BPO certification required to do BPOs?”, it SHOULD BE!


Real Estate Income

Performing Broker Price Opinions BPOs is a source of income for many Real Estate Agents and Brokers across the country.  Most agents who do BPOs enjoy the steady income from being paid to perform Broker Price Opinions (BPO) which supplement their regular real estate income, especially in the slow times between deals.  For most, BPOs provide a nice supplement to their real estate income whereas there are some agents BPOs are their primary income source.  BPOs have become an integral part of many real estate agents and brokers business.

Banks, Lenders, asset managers etc. constantly require valuations for various reasons all over the country.  Click here BPO reasons.  Regardless of the direction of real estate, there will always be demand for BPOs.  BPOs have become the preferred valuation method for many organizations involved in the real estate industry.  Automated valuations aren’t necessarily accurate, and appraisals usually have more information than is needed, are significantly more expensive, and take longer to get. BPOs are a great happy medium for banks lenders asset managers etc.

Financial organizations utilize BPOs every day

A Broker Price Opinion BPO is a cross between a CMA and an appraisal.  BPOs have more details and are formal than a CMA but less detailed than a full appraisal.  BPOs are more cost effective for organizations who need real estate valuations. More info BPO

Real estate agents and brokers perform BPOs primarily for the following reasons:

  • Receive Income       
  • Opportunities for listings (REO, foreclosure, short sale)  
  • Marketing Opportunities   
  • Increased Skills as a Real Estate Professional    
  • Become a more Proficient and knowledgeable Real Estate Professional 
BPOs are the first step of Foreclosure and BPOs are utilized throughout the entire process.

Pennsylvania permits BPOs

Pennsylvania recently approved a law which removes many restrictions on performing Broker Price Opinions (BPO).   Pennsylvania’s Real Estate Licensing and Registration Act (RELRA) (formerly House Bill 863) was signed into law and is effective August 28, 2018.

“This legislation ultimately helps real estate professionals meet the changing needs of the real estate industry” said Rep. Greg Rothman, a third generation Realtor®, a broker, an appraiser and a former State Real Estate Commissioner.

“It’s taken hard work by dedicated PAR members, staff and legislators to get this bill passed,” said Pennsylvania Association of REALTORS (PAR) President Todd Umbenhauer. “These changes will provide a greater level of service and competency to our clients.”

Over the course of several years, PAR has met with representatives from the State Real Estate Commission, State Board of Certified Real Estate Appraisers, Coalition of Pennsylvania Real Estate Appraisers, Real Estate Valuation Advocacy Association and the Pennsylvania Bankers Association to negotiate specifics of the bill. The final version incorporates many of the requests from these groups.

Click here for details on House Bill 863