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 that any BPO customer demand a BPO certification and that agents and brokers become BPO certified. Even if you never do a single BPO, pricing and valuation skills are good things 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, whom should you pick? If you are presented with competent and experienced options and the only difference is certified vs non-certified, whom should you choose? You have no risk or obligation 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 that teaches me how to do my job more proficiently and have a mechanism to display that I have achieved the requisite knowledge to perform competently?” The answer is No, you don’t have to. It’s not a law, but it’s an excellent 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 zero-tolerance. It takes a while to get into the industry and get set up. The NABPOP BPO certification is designed to speed you through the learning curve and NOT make rookie mistakes. If you never do a single BPO, you will learn to evaluate the market accurately and efficiently, value houses and the relevant amenities, and render a precise price opinion. This alone is a highly desirable skill for any real estate professional, regardless of affiliation with the BPO industry.
If you want to make a quick buck in the BPO industry, NABPOP invites you not to 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!
What is the income potential in Michigan for doing BPO’s, I assisted a local agent about 10 years ago and he was doing north of 200 BPO’s a month over a few companies but eventually stopped due to laziness and low fees. I LOVED the work and would like to get back into it. Is there enough work in Michigan to make a career out of this, I know every inch backward and forward of how to get an order done, and what criteria companies look for to get it through their QC quickly. Just the barrier to get in the field is unclear.
Every house in your area has the potential for multiple BPOs. Banks prefer BPOs versus other valuation methods, so the demand is consistent. More houses more demand. There are many agents and brokers around the country who specialize in BPOs and make a very good living performing BPOs as their only source of income. Most agents perform BPOs to supplement their regular real estate income and to gain and maintain ACCURATE pricing skills which are very useful in just about every area of real estate – not just BPOs. Referring to your experience working with an agent who performed 200 per week, they were making $10,000 per month/$120,000 per year. Agents who specialize in BPOs can do more. The best way to get to a high volume is to become BPO certified, this gets you on a list of agents who are certified. Sign up with all the relevant BPO companies, asset managers, and appraisal management companies AMCs. Perform high quality and accurate BPOs with fast turn around times. This will build your relationship with these organizations and in time you will build your volume to your desired level.