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Brett Dunne, Real Estate Pro in Rancho Cucamonga, CA

I Have Been Asked To Execute A Drive-By B.P.O.

Asked by Brett Dunne, Rancho Cucamonga, CA Thu Oct 25, 2007

The company wants an "as is" valuation and a Repaired Value. How can this be determined or even estimated by way of a "Drive-By"?

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Hi Brett. I have done lots of drive-by BPOs (probably over 700 by now) and I can tell you that most of the time there is no apparent need for repairs. You are absolutely right, you can't really give accurate estimates in most cases. I usually focus on the roof and overall exterior appearance to judge condition. Unless there are obvious repair items, my comment is "no apparent need for repairs noted during drive-by evaluation. I have never had a clarification request because my repair estimate was not accepted. If the lender wants a more detailed evaluation, they should order an interior BPO as that will give you the opportunity to get a close-up look at everything. I hope this helps put things into perspective.
Web Reference: http://www.theMLShub.com
1 vote Thank Flag Link Thu Oct 25, 2007
Ute Ferdig -…, Real Estate Pro in Newcastle, CA
MVP'08
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Unless you have a sense of the neighbourhood, and a clear knowledge of the housing stock in the area, doing this one time for the going rate of $150 will be hard to really make any money.

It usually requires threee pics...1 of the front of the house, one of the number of the house, and one of the street scene...then run a CMA of comparable SOLDS in the reaired value condition, and use a balanced average of the solds vs the subject to come up with a valuation
Web Reference: http://www.iansellsnola.com
1 vote Thank Flag Link Thu Oct 25, 2007
Possibly they want a thourough BPO for the price of a drive - by (at least a $20 differeence).
If on your "drive - by" yu happen to notice the place has been abandoned, you can can peek in the windows and try the door. There may even be a lock box on it already and you might be able to get interior access anyway. The previous listing (if any) may have interior pictures and possibly description of defects. You can certainly guess if there are broken exterior windows, trim, rotten roof, driveway buckling, dead landscaping, fallen down fencing, graffiti, green or black swimming pool water. etc.

As far as the interior is concerned you could speculate that due to the awful condition of the exterior, that it is likely that there are problems on the inside.
1 vote Thank Flag Link Thu Oct 25, 2007
Jim Walker, Real Estate Pro in Carmichael, CA
MVP'08
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Brett, old question but I feel it still deserves another answer.

The companies understand the limitations of the "drive by" BPO. Ask the company for guidance on what condition you assume the property is in. If it is listed, go off the listing remarks and pictures. Be able to stand behind your report and how you arrived at your value. Repaired value can only include the exterior for a drive by...was there dry rot? Broken window? Did the roof have a 10x10 hole? Etc...
0 votes Thank Flag Link Sat Sep 18, 2010
I'm doing a lot of short sales at the moment and I find drive by BPOs frustrating.....because it is hard to give an accurate estimate without seeing the interior. Good for you for questioning the process.
Web Reference: http://www.cindihagley.com
0 votes Thank Flag Link Thu Oct 25, 2007
Cindi Hagley, Real Estate Pro in San Ramon, CA
MVP'08
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It's whay alot of appraisers are doing now for lenders. Is this a bank-owned property? Because it's fairly common on foreclosed property as well.

Looks like you'll have to use comparable recent solds, past appraisals and tax records, and estimate the worth based on perfect condition and 'as is'.

What a pain, though.
0 votes Thank Flag Link Thu Oct 25, 2007
Patti Pereyra, Real Estate Pro in Chicago, IL
MVP'08
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Brett,
Sounds tough. I don't think you can get closer then within 10% of market value by just driving by. I'm always surprised by what someone, sometimes sitting in another state, can come up with for us to do.
Michael
0 votes Thank Flag Link Thu Oct 25, 2007
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