Below is an excerpt from my accredited class titled, "Broker Price Opinion Basics 101."
Let's take an honest, hard look at the current state of the BPO industry. Be forewarned, I'm not trying to scare you, but instead will give you a background and point of reference that will help educate you about what to expect when deciding to pursue getting into the BPO business.
As of the end of 2010, beginning of 2011, the BPO industry is still very strong both in the amount of volume of orders that are available and being done across the nation. Real estate professionals that have decided to get into the business and do BPO's full-time back a few years ago are seeing a lot of success, while those joining the ranks recently are going to have to work harder for their ‘slice of the pie.'
The BPO industry is cut-throat and competitive just as the traditional sales side of the real estate business is, so those with the most education, relationships, systems and such are going to be the most successful.
I personally have seen a lot of change occur in the last 5 years in the business. Most of the changes that have happened have been needed very badly, while others were very hurtful to our industry.
Examples of good changes that have happened are that there are more regulations and standards that outline the scope of a BPO Agent's duties and responsibilities than 5 years ago. There is plenty of education on the topic and standardization within the industry is a concept that is being well acknowledged and practiced by many in the business.
A few examples of negative changes that have taken place are: a downturn in the total amount that companies pay BPO Agents to complete a BPO order for them. Another example is that to date there are too many BPO, REO and Asset management companies charging a fee to provide work to BPO Agents. These trends have sprung up because within the last few years specifically there were thousands of new people getting into the business. Companies saw this opportunity as a way to capitalize on money making ventures that were most times filled with empty promises. Remember the saying, "If it's too good to be true, it probably isn't true."
Founder and Lead Instructor of BPO University