Property data is required in all stages of BPO development. Data is used to create analytical tools that validate broker or agent opinions and can be used as support within operational processes. This information provides the basis to validate reported descriptions and characteristics of the subject property, as well as those used as comparable closed sales and active listings. This enables the provider to understand the complexity of the assignment, based on data-derived intelligence. The accuracy of property attributes and market information will lead to higher confidence and satisfaction by end users.
Data-enhanced automated processes can also identify and highlight unsupported judgment-based adjustments to be reviewed and corrected prior to report delivery.
Is the market changing?
Although growing in many areas over the past few years, the time on market required for each property to sell is constantly changing. Real estate brokers, agents and appraisers have always been able to “feel” changes occurring, but a statistically derived validation of these changes must be an integral part in the development of any market value or price opinion.
Real estate market velocity refers to the direction and speed of market changes that, in many cases, can be tracked and reported at the neighborhood level. Strong validated databases are also the tools used in developing reliable market velocity measurements to support credible BPOs.
So, the question remains: How do you distinguish between a BPO that only looks like a high-performance vehicle and one that actually performs that well? With vendor due diligence, it is relatively simple to ascertain the performance you can expect from your BPO provider. Ask questions, kick the tires, and look under the hood. You may be shocked to see a squirrel running on a flywheel that drives some BPO engines.
A quality BPO provider will welcome your office visits and be fully prepared to meet the highest standards of audit, process and regulatory scrutiny. By identifying a high-quality BPO provider, you can enjoy peace of mind. You’ll know the motor driving your BPO servicing is a finely-tuned engine that ensures exceptional and consistent performance.