Broker
Price Opinion
The broker price opinion you are about to provide will be an important tool for a nationwide lender. Whether for a foreclosure proceeding or for the sale of a portfolio of non-performing loans, it will be critical in allowing the lender to complete its transaction within its deadlines and budget. As such, it is important for you to keep in mind some simple things when doing your BPO, to ensure that the lender will receive the information it needs.
When NMS places an order with you, the paperwork will list the name and contact information of the Account Manager handling the order, form and photograph requirements, deadlines and all information about the subject property. If the Account Manager did not speak with you when placing the order, it may be canceled without notice if you do not confirm it by e-mail, fax or phone. If you need any additional information to complete the order or cannot complete it by the deadline, notify the Account Manager promptly.
You are required to inspect the property. Any required photographs must be taken at the time of inspection, not from a file.
It is necessary for you to provide all of the information available that pertains to the marketability of the subject. This includes square footages, room counts and exterior features of all properties. If information is not available electronically, use your drive by inspection and knowledge of the market to ascertain probable information, noting your reasoning in the provided spaces on the BPO form.
Comparable properties should be similar to the subject property in size, location and construction. If recent sales and listings do not closely match the subject, use older or less comparable listings, making appropriate adjustments and notes in the spaces provided.
The value you provide for the subject must be within the range of those of the comparable properties. Use the provided spaces for value adjustments and notes to make it so and explain any deviant values.
It is important that all repairs that you observe the property to require be listed on the form or an addendum, with a description and estimated cost.
These are very important to the lender. Use the form to provide as much information about marketability of the subject property as possible. Addenda may be attached if you require more space.
NMS accepts completed orders through its Internet site. See the relevant section of this manual for instructions. Although orders can be accepted by fax, overnight mail and e-mail, use of the Internet site helps ensure timely and quality delivery and processing of your BPO. If a faxed or e-mailed BPO is illegible or not in the required format, a handling fee may need to be deducted from your bill. BPOs lost or delayed in overnight mail will need to be sent again.
Be sure to provide us with a social security or employer identification number if we do not have one on file for you. NMS will remit payment within sixty days of receipt of your BPO or when the lender approves it, whichever is first. If the lender rejects or requires resubmission of a BPO, NMS cannot remit payment for it.
Do not disclose your BPO to the property owner or occupant or to other companies. If you have done a BPO on the property for another company within the last six months, notify us before proceeding with the order. If the lender receives a BPO from you by way of two companies, only copy will be payable.
Broker price opinions are a crucial part of the REO process. Presently, NMS primarily handles special or difficult REO cases and regularly does not assign listings for standard properties. However, the lender might assign the REO listing to you directly. If it does, NMS will not ask you for a referral fee. Since competition for listings is high, providing a BPO that is accurate, timely and of good quality is necessary for you to be considered for a listing.
If you need assistance, contact a NMS Account Manager or refer to the sample BPO in the next section.