The most difficult task for the interior BPO may be gaining access to the home. The property may be vacant or occupied by the tenant or owner. If vacant, the house usually has a supra safe or key. If it is busy, an appointment must be made to enter. To gain access in either case, you must contact the real estate agent supervising the property. Your local MLS will have your contact information, or the appraisal company should provide it to you. That agent will provide codes to lock boxes or offer to set up an appointment with themselves, the owner, or in some cases both. Most appraisal firms will pay real estate agents between $65 and $75 per interior BPO for the extra work involved.
Tips and tricks for interior photography and BPO
1. Don’t delay
Appraisal companies usually allow up to 72 hours to perform an interior BPO and will pay you one and a half times more than an exterior. 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 make the appointment well before the due date. If the real estate agent has to cancel, they still have time to reschedule and complete the interior BPO on time.
2. Be assertive and in control
Always remember that you are working for the appraisal company, not the real estate agent. When contacting the real estate agent in charge of the property, be assertive when scheduling appointments. If you have to meet with the real estate agent or landlord, let them know when you’ll be in the area to do the interior BPO instead of asking what time they’re available. This method will work most of the time. You can keep your sanity by keeping track of multiple appointments throughout the day. Most agents are willing to stick to your schedule because they can’t take a commission without you completing the inside BPO.
3. Politely ignore the real estate agent
If you are going to meet with the real estate agent, chances are they have prepared a 10-page summary of facts and documentation on why the property should be valued at the low end of the market. You will most likely receive an overblown CMA and repair estimates for the home. They will talk in your ear throughout the inspection to try to manipulate the value of inside BPO. Inspect the house yourself and only write down what you personally observe. Don’t just take their word for it. They are just pressuring you to price the inside BPO low so the bank will approve your short sale and they walk away with a commission.
4. Take 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 to see that the report reflects what is seen in the pictures. The repairs will ultimately affect the current value of the interior BPO. Make a note of any repairs in the report when they are present in the home.
5. Double check your work
Appraisal companies are quite meticulous when it comes to photographs. If images are missing or unclear, you will be asked to go back and take the ones you missed. You will waste a lot of time rescheduling an inside BPO and the other real estate agent will not be a happy camper. This isn’t practical, so double check the footage on your camera to make sure he has what he needs before you leave.
Pulling comparables
Generally, you should complete the interior BPO portion of the report after taking pictures of the home. Implementing this method will result in more accurate actual values if you personally observe the house and neighborhood before reporting. In addition, the inspection will also be fresh in your memory.
To make an interior BPO report, you must search for six comparable houses (comps) in the immediate area of the subject. Three comps must be dirty comps; the other three should be listing comps. The selection of compositions is determined using a variety of similarities with the property in question. 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 accurate current value.
Inside orders are more work than outside orders, but ultimately more money. The main differences between the two reports will be obtaining access to the home and notification of any damage that may be found inside or outside the home. Pretty easy for an extra $25.