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