In today’s current market many real estate agents have to look to other areas to help them earn revenue to augment their home marketing income. Some agents have spouses that earn a steady income that helps pay the bills during the time that listings are waiting for acceptable offers or a market campaign brings fruition with new home buyers. For myself, the decision was based on trying to find soemthing that was complimentary to my main business focus, real estate. To that End I ended up with doing Broker Price Opinions (BPOs). BPOs are very similar to Comparative Market Analysis (CMAs) except that BPOs are more detailed and are done for a fee, while CMAs are at no-cost for a home owner and prospective home seller.
After spending a considerable amount of time doing these BPOs I have come to the conclusion that they are a two-edged sword. On one hand, if you do enough of them for the right price, they are a good source of extra income. However, on the flip side, they are very time consuming and not very cost-effective to do if one does not set some initial ground rules in doing them. But the key question is – are they worth doing? Before I can answer the question, I should go into a bit more detail in what is the process of getting and completing BPOs.
BPOs can be a steady source of additional revenue if you can be assured of getting them each and every month. This may not always be the case due to many factors. One of the biggest factors is the lending institutions. I tend to work with third party servicing companies that go out and solicit business from these lenders. If they are successful, then the service company has quite a lot of orders to fullfill, which they need real estate agents (known as Field Agents) to complete for them. Basically, lenders hire these service companies to give them financial marketing information on a specific property. I can’t go into what details/services the service provides them, but one of the components is the details market analysis of the property, known as a BPO. The Field Agent (FA) is assigned an order to complete a report on. The report is very similar to doing a CMA for a home owner except there is more detail in writing. The FA must go out and take pictures of the property, view the property and the neighborhood. It is of tremendous help if the FA also knows the market area extemely well. This may sound like a no brainer, but there are real estate agents that will only focus on the money (fee paid for order), take the order, and then try to put together whatever they can to get the report accepted. So, now you have a basic understanding of the the BPO process with third party service.
So, to answer the question of are BPOs worth doing, my answer is Yes and No.
For Yes, it is as long as you can be assured of getting a relatively large number per month. Because of this uncertainty, I have relationships with many different service companies that assign BPO orders. This way I can track my revenue from BPOs each month and see how well I am doing. If one servicer is low in assigned orders for me, I can then accept orders from other service companies. Now, one of the rules that I have established for myself in completing BPOs is that I do not accept any drive-by order (referred to as Exterior Orders) for anything less the $50. Anything less is not cost effective for me to take; I have to contend with wear and tear on my car and my time in conducting the research. In that the BPO will not end with me getting a home to list, the fee is the only benefit I can expect to get from them.
The other advantage for me in doing BPOs is more of a non-monetary issue. And that is that BPOs allow me to learn, on almost an on-going basis, what the market is doing in any specific area. If I get a BPO order to complete on a luxury home in a specific development, my research gives me knowledge about what is going on within that specific market segment. This gives me an advantage over other agents in the area who rely only on doing CMAs for home owners. For one thing, the agents need a willing home owner who is interested in the agent’s CMA. Without that home owner, why would the agent do a CMA? I, on thr other hand, always have a willing recipient of my detailed market analysis with the mortgage lenders and banks.
As for the flip side of doing BPOs, the No side, is that they are very time consuming. Even though you are getting a fee for completing a BPO you still need to take the time to drive to the property to take photos and to do the detailed research that the lenders/banks require (i.e. number of vacant homes in the neighborhood, how many homes in the neighborhood are bank owned/foreclosed, the potential rental amount, etc.). This all takes time. And if you are doing a large number of BPOs each month, the time needed can add up very quickly.
So, the question remains. Should agents do BPOs or not? There is that trade-off. While an agent is spending time doing those BPOs they are not farming/soliciting new customers. Their client base can possibly dwindle. If they don’t have time to get on the phone to prospect for new homes sellers, their inventory will shrink.
On the other hand, doing BPOs is an ideal way to keep ones fingers on the pulse of the market. To be ahead of the curve as to what is going on with prices. Because as an agent does more and more BPOs they will tend to get orders from lenders/banks for homes in a cluster of areas over a period of time. I, myself, have done numerous BPOs within the same development many times over the course of a month. Don’t you think that I pretty much have the idea of what is going with prices there? I also see what other agents are doing with their marketing of the homes and the mistakes they make. I’m getting pretty good at predicting if an active listing is going to be a candidate for expiration. I also see the trend of what is happening with the short sale market and where it is heading. Not only do I have to complete the research for the market pertaining to the home I am contracted to do an valuation on, but I am expected to give a detailed analysis of that market area and the homes within there.
So, in a nutshell, it does take quite a bit of time to complete a proper BPO but it is well worth it because my experience and insight helps me serve my customers that much better. When I give an opinion of the expected selling price of their home it is because I have done numerous valuations of homes in their area and I have been watching the trends of prices over a longer period of time. Not like many of the other agents who ran a CMA in the last couple of days because they had a listing appointment. I have watched the market for months while the other agents have had to cram the data and make some verbage up so that the prospective seller will be impressed that they use all the right buzz words and have some fancy charts (that the agents really don’t know what they mean).
The whole BPO activity has only added to my level of knowledge along with my years experience in marketing to better serve my clients/customers.
Terry Iwaniw
REALTOR Associate
ReSales & Investment Realty, LLC
Off: 856-795-3111 x263
Cell: 609-417-1086
http://www.sellmysnjhome.com
http://snjrealestate.ning.com
http://www.snewjerseyhomes.com
Connect on Facebook – http://profile.to/terryiwaniw
Tags: bpo, broker price opinions, cma, comparative market analysis, home prices, home sellers, market prices, market trends, marketing research, prices
Don’t Miss Out on Bargains! These HUD Owned Homes Have Been SOLD!
Get Your Offer In! Get Your Own List of HUD Owned Home. Don’t loose out on another deal.
 |
1037 Hamilton Dr, Vineland, NJ
Listed At: $195,000
Sold At: $155,000
SAVED
– $40,000 |
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12 Prichard Ln, Sicklerville, NJ
Listed At: $140,000
Sold At: $125,000
SAVED –
$15,000 |
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256 New York Ave, Newfield, NJ
Listed At: $116,000
(Appraised at $145,000)
Sold At: $100,000
SAVED –
$16,000 |
 |
314 Oxford St, Vineland, NJ
Listed At: $72,000
Sold At: $53,000
SAVED –
$19,000 |
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35 Colgate Rd, Atco, NJ
Listed At: $148,500
(Appraised at $165,000)
Sold At: $125,000
SAVED –
$23,500 |
 |
3803 Tall Pines, Pine Hill, NJ
Listed At: $113,000
Sold At: $85,000
SAVED –
$28,000
|
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434 La Cascata, Clementon, NJ
Listed At: $55,000
Sold At: $47,500
SAVED –
$7,500
|
Want to find your own HUD owned home bargain? Don’t miss out on another one! Complete the form here or
call us at
609-417-1086.
Terry Iwaniw
============================
REALTOR Associate
ReSales & Investment Realty, LLC
http://www.terryiwaniw.com/
http://www.njhudsales.com/
Direct: 609-417-1086
Office: 856-795-3111 x263
============================
Tags: bargain homes, buying HUD homes, hud homes sold, HUD owned homes, real estate for sale
Posted by
admin on Jan 12, 2010 in
Listing,
Marketplace,
Real Estate,
for sale Take Advantage While You Can – 61 Tailor Ln, Sicklerville – Ref#: IE5640776. If ownership is your plan, then come see this 2024-SF HUD owned townhouse on 0.04 acres in Wilton’s Corner. Has 3 bedrooms, 2.5 bathrooms, dining room, casual living room with carpeting, family room, sunny kitchen with laminate countertops, sliding glass doors, deck, patio, front porch, 1-car garage. All properties are sold in ‘As Is’. Please call Terry for more information.
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Moving On Up – 1100 Beechwood Dr, Atco – Ref#: IE5630276. Make the next big step in this 2-story 4-bedroom/2.5-bath HUD owned home on 0.46 acres in Atco. This comfortable floor plan delivers a traditional dining room, relaxing family room, casual living room with carpeting, fireplace for winter days, laundry with w/d included, kitchen with dishwasher, electric range, refrigerator, pool, deck, porch, 1-car garage, fenced yard, patio.All properties are sold in ‘As Is’. Please call Terry for more information.
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No Place Like Home – 933 Ladner Ave, Gibbstown – Ref#: UI5622846. Enjoy a comfortable lifestyle in this 5-bedroom/1.5-bath HUD owned Colonial home on 0.44 acres in Gibbstown. Great features include a casual living room with carpeting, dining room, sunny kitchen with laminate countertops, double sinks, basement laundry, in-ground pool, 1-car garage. This 1,965 sq ft home is only a short drive to I-295. All properties are sold in ‘As Is’. Please call Terry for more information.
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Get Out Of That Lease – 12 Pritchard Ln, Sicklerville – Ref#: UI5637726. And into your own 4-bedroom/2-bath vinyl-siding home in Sicklerville. This convenient floor plan delivers an inviting family room with stone fireplace, master suite with separate shower, gracious dining room, engaging living room with carpeting, captivating kitchen with dishwasher, laminate countertops, gas range, second-floor laundry, fenced back yard for energic toddlers, 2-car garage. All properties are sold in ‘As Is’. All information deemeded and should be independently verified. Please call Terry for more information.
Call For Details or Schedule to View
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The American Dream – 35 Colgate Rd, Atco – Ref#: UI5622828. Starts with homeownership. Come see this 2-story HUD owned Colonial home in Ivystone Farms. Features include 4 bedrooms, 1.5 bathrooms, warm family room, casual living room with carpeting, traditional dining room, sunny kitchen with laminate countertops, dishwasher, first-floor laundry, 1-car garage. Only a short drive to Route 73 or WHP (Route 30). All properties are sold in ‘As Is’. Please call Terry for more information.
[Click Here for Details]
Request your own copy of this home’s Property Condition Report by clicking here.
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Terry Iwaniw
============================
REALTOR Associates
ReSales & Investment Realty, LLC
http://www.sellmysnjhome.com
http://www.terryiwaniw.com/
http://snjrealestate.ning.com/
Cell: 609-417-1086
Office: 856-795-3111 x263
============================
Tags: homes for sale, HUD owned homes, hud owned homes for sale, real estate for sale
I have prospective buyers asking me if FHA mortgages are a good deal these days, or are they strictly for lower-income home buyers?
In the past, most Federal Housing Administration (FHA) loans were made to lower-income borrowers. In fact, that is why FHA was established. In the 1930s, a working person would have to save 50 percent of the value of a house before being able to get a mortgage. The FHA changed that with programs that guaranteed loans made to people with lower down payments.
FHA itself does not actually lend money or set interest rates. Instead, it guarantees loans, insuring that private lenders are protected against defaults on loans. Today the FHA has a variety of loan guarantee programs for first-time borrowers, reverse mortgages, and refinances. The percentage of FHA loans in the mortgage market is about 25 percent.
In fact, while FHA loans still require smaller down payments and often have low interest rates, not all FHA borrowers are low income. In areas where real estate is expensive, borrowers can take FHA mortgages for as much as $729,750 but the limits vary from place-to-place. I can discuss FHA limits and requirements with you if you think such a loan would be good for you.
There are a lot of reasons people look to FHA loans. Today, if you want to make a down payment of less than 10 percent, you almost certainly will have to do an FHA loan. Borrowers can get a home mortgage for as little as 3.5 percent down.
As a government-insured loan, an FHA mortgage has easier credit qualifying guidelines than most lenders. Today, nearly all lenders require a credit score of 700 or more to qualify for a conventional mortgage. FHA credit score requirements are slightly lower.
Nonetheless, there is no guarantee that an FHA mortgage is a better deal than a conventional one. As always, shop around and deal with a reputable lender.
Tags: mortgage loans, mortgages, mortgages types
Posted by
admin on Dec 27, 2009 in
Marketplace,
Real Estate If you are thinking of buying a home, you might be confused about the many issues in the news from mortgage rates to mortgage bills in Congress.
But the fundamentals of buying a home really haven’t changed and, in fact, there are new incentives on the horizon that should make home buying more attractive than ever.
There are plenty of homes on the market in every price range and if you want one of them, you need only do what generations of people have done. You just have to pay attention to these basics:
First, cultivate good credit by prudent living. Pay your bills and pay them on time. Use credit sparingly. If you do this, you’ll earn a good credit score, which is crucial to getting a good interest rate. Research shows that many consumers believe that they have to have a high income to have a high credit score, but that’s not true. In fact, income is irrelevant to your credit score. Your credit score is a rating based on how well you live up to your obligations, pay your bills and use your credit.
Second, save money for a down payment. In the current climate, most lenders will ask you to bring some cash to the table in a mortgage deal.
Third, find a house you love but can also afford. One path to financial freedom is to buy a modest house and build equity. When you decide to move up, you can sell your house and take a large chunk of the money from the sale and apply it to your new home. Your payment is lower while you live better. It’s the good, always-in-fashion way to live.
Tags: american dream, buying a home, real estate in camden county, real estate in gloucester county, real estate in new jersey, the real story
Posted by
admin on Dec 13, 2009 in
Listing,
Marketplace,
Real Estate,
for sale
4 Bedroom, 2.5 Bath 2 Story HUD Owned Single Family Home (IE5630276)
Location: Maple Glen
Make the next big step in this 2-story 4-bedroom/2.5-bath HUD owned home on 0.46 acres in Atco. This comfortable floor plan delivers a traditional dining room, relaxing family room, casual living room with carpeting, fireplace for winter days, laundry with w/d included, kitchen with dishwasher, electric range, refrigerator, pool, deck, porch, 1-car garage, fenced yard, patio.All properties are sold in ‘As Is’. Please call Terry for more information.
Information
Contact Information
Terry Iwaniw
Direct: 609-417-10
Office: 856-795-3111 x263
Pricing
Price: $215,000
Additional Pricing Information: HUD requires deposit at time of offer.HUD requires proof of funding or mortgage pre-qual at time of offer.Contact agent to request Property Condition Report.
Property Location
1100 Beechwood Dr
Atco, NJ 08004
View Map
Features
Bedrooms: 4
Bathrooms: 2.5
Year Built: 1979
Subdivision: Maple Glen
Lot Size: 20088
Garage Size: 1
School District: Wateford Twp
Square Footage: 2215
Agent Name: Terry Iwaniw
Broker: R & I Realty, LLC
MLS #: 5630276
HUD will allow escrow for repairs: Yes
Will qualify for FHA loan w/o repairs: No
Deposit required with offer: $1500
Attributes
Appliances
Range/Oven
Full Refrigerator
Washer/Dryer
Dishwasher
Exterior Amenities
Patio
Swimming Pool
Grass Lawn
Tags: atco homes for sale, homes for sale, homes for sale in atco, homes for sale in camden county, homes for sale in waterford twp, hud owned homes for sale, single family home for sale
Posted by
admin on Dec 13, 2009 in
Listing,
Marketplace,
Real Estate,
for sale
4 Bedroom 2.5 Bath 2 Story Home For Sale in Atco (UI5622828)
Location: Ivystone
A large 3 Bedroom 2.5 Bath HUD owned twin/duplex home has a fireplace, sliding glass doors leading out to the patio, a fenced yard on a corner lot. This home has a kitchen with a breakfast area, 1 car garage, spacious living room with a fireplace, master bedroom with its own bath, and dining room.
Information
Contact Information
Terry Iwaniw
Direct: 609-417-10
Office: 856-795-3111 x263
Pricing
Price: $165,000.00
Additional Pricing Information: ALL PROPERTIES ARE SOLD IN ‘AS IS’ CONDITION.SELLER MAKES NO REPRESENTATIONS OR WARRANTIES CONCERNING THE CONDITION OF THE PROPERTY AND DOES NOT GUARANTEE THAT THE PROPERTY IS FREE OF HIDDEN OR VISIBLE DEFECTS. BUYER IS RESPONSIBLE TO TAKE ACTION TO SATISFY HIMSELF THAT THE PROPERTY IS IN A CONDITION ACCEPTABLE TO HIM. SELLER WILL MAKE NO REPAIRS. BUYER IS ENCOURAGED TO HAVE A HOME INSPECTION TO IDENTIFY ANY DEFECTS.
Features
Bedrooms: 4
Bathrooms: 2.5
Year Built: 1964
Subdivision: Ivystone
Lot Size: 20400
Garage Size: 1 car
School District: Waterford Twp
Square Footage: 1720
Agent Name: Terry Iwaniw
Broker: R & I Realty, LLC
MLS #: 5622828
HUD will allow escrow for repairs: No
Will qualify for FHA loan w/o repairs: No
Deposit required with offer: 1500
Tags: homes for sale, homes for sale in atco, homes for sale in camden county, homes for sale in waterford twp, single family home for sale
Posted by
admin on Dec 13, 2009 in
Listing,
Marketplace,
Real Estate,
for sale
3 Bedroom 2.5 Bath Bi-Level Home For Sale (IE5616622)
Location: Woodshire Mews
Experience the value of ownership at this HUD owned bi-level home on 0.20 acres. Features include 3 bedrooms, 2 bathrooms, casual living room with carpeting, relaxing family room, tasteful dining room, finished, walk-out basement, laundry with w/d included, open kitchen with dishwasher, garbage disposal, laminate countertops, gas range, microwave, some appliances, home office on lower level, deck, off-street parking, fenced back yard for the pets, sliding glass doors. All properties are sold in ‘As Is’. Please call Terry for more information.
Information
Contact Information
Terry Iwaniw
Direct: 609-417-10
Office: 856-795-3111 x263
Pricing
Price: $135,000.00
Additional Pricing Information: ALL PROPERTIES ARE SOLD IN ‘AS IS’ CONDITION.SELLER MAKES NO REPRESENTATIONS OR WARRANTIES CONCERNING THE CONDITION OF THE PROPERTY AND DOES NOT GUARANTEE THAT THE PROPERTY IS FREE OF HIDDEN OR VISIBLE DEFECTS. BUYER IS RESPONSIBLE TO TAKE ACTION TO SATISFY HIMSELF THAT THE PROPERTY IS IN A CONDITION ACCEPTABLE TO HIM. SELLER WILL MAKE NO REPAIRS. BUYER IS ENCOURAGED TO HAVE A HOME INSPECTION TO IDENTIFY ANY DEFECTS.
Property Location
2809 New Brooklyn Erial Rd
Sicklerville, NJ 08081
View Map
Features
Bedrooms: 3
Bathrooms: 1
Parking Spaces: Driveway
Year Built: 1992
Subdivision: Woodshire Mews
Lot Size: 8625
School District: Black Horse Pike Regional
Square Footage: 1108
Agent Name: Terry Iwaniw
Broker: R & I Realty, LLC
MLS #: 5616622
HUD will allow escrow for repairs: Yes
Will qualify for FHA loan w/o repairs: No
Deposit required with offer: 1500
Attributes
Appliances
Range/Oven
Full Refrigerator
Washer/Dryer
Dishwasher
Microwave
Tags: homes for sale, homes for sale in camden county, homes for sale in erial, homes for sale in gloucester twp, single family home for sale
Posted by
terryriw on Dec 13, 2009 in
Listing,
Marketplace,
Real Estate,
for sale
5 Bedroom 1.5 Bath Colonial Style Home for Sale in Gibbstown (UI5622846)
Location: Gibbstown, NJ
Enjoy a comfortable lifestyle in this 5-bedroom/1.5-bath HUD owned Colonial home on 0.44 acres in Gibbstown. Great features include a casual living room with carpeting, dining room, sunny kitchen with laminate countertops, double sinks, basement laundry, in-ground pool, 1-car garage. This 1,965 sq ft home is only a short drive to I-295. All properties are sold in ‘As Is’. Please call Terry for more information.
Information
Contact Information
Terry Iwaniw
Direct: 609-417-10
Office: 856-795-3111 x263
Pricing
Price: $150,000.00
Additional Pricing Information: ALL PROPERTIES ARE SOLD IN ‘AS IS’ CONDITION.SELLER MAKES NO REPRESENTATIONS OR WARRANTIES CONCERNING THE CONDITION OF THE PROPERTY AND DOES NOT GUARANTEE THAT THE PROPERTY IS FREE OF HIDDEN OR VISIBLE DEFECTS. BUYER IS RESPONSIBLE TO TAKE ACTION TO SATISFY HIMSELF THAT THE PROPERTY IS IN A CONDITION ACCEPTABLE TO HIM. SELLER WILL MAKE NO REPAIRS. BUYER IS ENCOURAGED TO HAVE A HOME INSPECTION TO IDENTIFY ANY DEFECTS.
Property Location
933 Ladner Ave
Gibbstown, NJ 08027
View Map
Features
Bedrooms: 5
Bathrooms: 1.5
Year Built: 1939
Lot Size: 19215
Garage Size: 1 car
School District: Paulsboro
Square Footage: 1965
Agent Name: Terry Iwaniw
Broker: R & I Realty, LLC
MLS #: 5592059
HUD will allow escrow for repairs: No
Will qualify for FHA loan w/o repairs: No
Deposit required with offer: 1500
Tags: homes for sale, homes for sale in gibbstown, homes for sale in gloucester county, single family homes for sale
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