NY “Performing Quality BPOs” Questions only (no answers)
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1) Cecilia lost her job and became seriously delinquent on her mortgage payments. She agreed to trade her home to her lender in exchange for cancellation of the mortgage note. This is known as a
a. deed in lieu of foreclosure.
b. forbearance plan.
c. pre-foreclosure.
d. real estate owned transaction.

NY Performing Quality BPOs

2) Real estate agent Todd typically sends his BPO orders to a
a. buyer.
b. lender.
c. seller.
d. third-party asset management company or a BPO company.
3) Lynda is preparing a BPO report. What information should NOT be included in her report?
a. market conditions
b. neighborhood characteristics
c. personal information about the owner
d. property information
4) Which statement about bankruptcy is FALSE?
a. All states require a Certified Appraiser for bankruptcy valuation.
b. Bankruptcy allows a court-appointed receiver to distribute the debtor’s assets among creditors.
c. Bankruptcy discharges debtors from further liability on their debts, although not from future debts.
d. Typically, bankruptcy valuations are liquidation value.
5) BPO stands for
a. Broker Paid Opinion.
b. Broker Paid Opportunity.
c. Broker Price Opinion.
d. Broker Price Opportunity.
6) Shelly is performing a BPO for a property that the owner wants to sell as a short sale. Shelly understands that a short sale is more difficult when
a. the BPO value is less than the equity.
b. the primary lienholder requests lots of documentation from the borrower.
c. the real estate agent will not reduce his commission.
d. there is a second mortgage lienholder.
7) Gary is pulling comparables for a broker price opinion order. This generally requires
a. three sold comparables.
b. three listed and three sold comparables.
c. three sold and three expired comparables.
d. three sold, three expired, and three listed comparables.
8) Real estate agent Terri is preparing a BPO report for a property that is being sold as a short sale. A short sale is when the
a. bank takes less of a payoff than the balance on the note.
b. closing is a cash deal, which takes less paperwork than a financing deal.
c. lender takes the deed back instead of the loan payoff.
d. property is sold quickly.
9) Melinda is waiting on payment for several BPO orders that she has completed. She can usually expect compensation for the BPOs
a. at the time of closing.
b. upon receipt of an invoice.
c. within 30 to 45 days on average.
d. within 90 days.
10) Loan modification means
a. the same thing as refinancing.
b. that the buyer assumes the seller’s mortgage.
c. that the PMI has been paid down and an appraisal has been ordered.
d. that the terms of the loan are changed through lowering the interest rate, extending the payoff date, lowering the monthly payment, or a combination.
11) Justin received an order to perform an exterior BPO. This type of valuation is frequently ordered for all the following purposes, EXCEPT
a. deed in lieu of foreclosure.
b. loan modification.
c. removal of PMI.
d. short sale.
12) Which entity does NOT receive contracts by lenders to perform BPOs?
a. asset management company
b. BPO company
c. PMI company
d. valuation company
13) Liquidation value is generally defined as the value of an asset that is liquidated within a very short time period, usually ________ days.
a. 10
b. 15
c. 30
d. 45
14) Reasons for BPO orders in today’s market include all of the following EXCEPT
a. foreclosures and deed in lieu of foreclosure.
b. loan modifications.
c. purchase money loan origination.
d. short sales.
15) Real estate agent Vicky is excited to start performing BPOs since she needs the extra income. Compensation for performing BPOs
a. is dictated by the agent.
b. is paid on a percentage basis.
c. is uniform throughout the industry.
d. ranges from $40 to $100 on average.
16) BPO orders generally come from
a. the owner of the property.
b. the sheriff’s department.
c. title companies.
d. third-party companies hired by the lender.
17) Alex works as a valuation manager for an Asset Management Company. His duty is to
a. correct any errors found on the BPO report.
b. have the title company review the BPO order.
c. review the completed BPO order or send it to the QC department to check for errors.
d. D send the BPO order to the property owner for review.
18) Financial institutions are prohibited by the Dodd-Frank Act from using BPOs in lieu of appraisals for _________ purposes.
a. bankruptcy
b. PMI removal
c. purchase money loan origination
d. refinancing
19) Which statement about appraisals is TRUE?
a. Agents may be hired to perform both appraisals and BPOs.
b. All states have four appraiser categories.
c. Appraisers who have received a state-issued credential must comply with USPAP.
d. Certified Residential Appraisers may appraise all types of real estate.
20) Real estate agent Ken wants to start performing BPOs. Ken should
a. check with his broker and confirm the laws regarding performing BPOs in his state.
b. get permission from his local Board of Realtors.
c. hire someone to assist with the work.
d. start a side business outside the office.
21) Capital Mortgage uses appraisal management companies for their BPO orders. One issue of using AMCs is that appraisers
a. charge higher fees.
b. need to hire agents to assist them with gathering information.
c. often lack geographical competency.
d. sometimes lack appropriate credentials.
22) Stacy received an order for a pre-foreclosure BPO on a property that is occupied. Considering this scenario, which statement is the MOST correct?
a. Stacy must ask the owner to view the interior of the property.
b. Stacy should perform an exterior-only valuation.
c. Stacy’s experience tells her that the interior is usually in better condition than the exterior.
d. Stacy’s valuation should be higher for an occupied property, since the owner is living there and taking care of it.
23) Which statement about compensation for performing BPOs is FALSE?
a. Agents may request additional compensation for a BPO if it is located outside of their normal service area.
b. Compensation for BPO reports is paid directly to the agent or the broker.
c. Compensation typically ranges from $90 to $250 per BPO.
d. Many agents have made a career out of performing BPOs.
24) Agents who perform BPOs are paid
a. as full-time employees.
b. as independent contractors.
c. as part-time employees.
d. only through a brokerage.
25) Jason and Rebecca are purchasing a home and they must pay for private mortgage insurance (PMI) due to having a low down payment. PMI
a. covers the home in case of loss due to a flood, fire, or from acts of nature.
b. pays the mortgage payments if the borrower is unable to pay them.
c. protects the borrower in case of foreclosure.
d. reduces the lender’s risk of loss if the borrower defaults on his loan.
26) Capital Mortgage acquired a property through a foreclosure and now they need to determine its value. What is a typical process in this scenario?
a. hire two agents from the same valuation company to perform BPOs, and then compare their valuations
b. hire two licensed real estate appraisers to perform appraisals, and then compare their valuations
c. obtain one BPO from the listing agent and one from a broker through another valuation company
d. use a recent BPO or appraisal to value the property, which is the most cost-efficient method
27) BPO companies require agents to
a. be members of a certified appraiser’s board.
b. engage other agents in completing orders.
c. take their own photos and view the property personally.
d. utilize a professional photographer.
28) BPO orders are confidential but can be discussed with
a. other agents making a BPO on the same property.
b. owner of the property.
c. potential buyers.
d. the BPO company from which the orders came.
29) Exterior orders generally require
a. three expired, three listed, and three sold comps.
b. three listed and three sold comps.
c. three sold and three pending comps.
d. two listed and two expired comps.
30) Agent Felicia received an exterior BPO order, which is generally due in
a. 1 day.
b. 2-3 days.
c. 4-6 days.
d. one week.
31) Kate has accepted a desktop BPO order for a property that is listed on the MLS. How should Kate obtain additional information about the property?
a. call the listing agent
b. drive by the property
c. examine photos taken previously
d. review tax records
32) What information is important to review before accepting a BPO order?
a. property design
b. property location
c. property size
d. property taxes
33) Agent Maggie discussed the results of her BPO report with the owner of the property. This is
a. good business practice.
b. mandatory, if the property owner asks the agent.
c. a violation of BPOSG standards.
d. a violation of state license laws.
34) Most BPO companies will not allow the listing company or agent to perform a BPO on a property that is listed through their own brokerage. This is called a
a. breach of duty.
b. conflict of interest.
c. criminal act.
d. double-agency.
35) Lou, a valuation manager, sent a broadcast e-mail to agents about a BPO order opportunity. Lou will likely assign the order to the agent who complies with his conditions. Which would NOT be considered one of them?
a. agent agrees to the stated price and the terms
b. agent can complete the order by the due date
c. agent is the first one to accept the order
d. agent is the sales leader of his company’s team
36) The two most common types of BPOs are
a. desktop and exterior.
b. drive-by and exterior.
c. exterior and interior.
d. interior and desktop.
37) Veronica is having difficulty locating BPO companies to sign up with. The best way for her to find BPO companies is to
a. check the local Board of REALTORS® website.
b. check various real estate agency websites.
c. look in the yellow pages.
d. utilize an Internet search engine.
38) A BPO assignment that does NOT involve visiting the property is known as a(n)
a. desktop BPO.
b. drive-by BPO.
c. MLS BPO.
d. offsite BPO.
39) Agent Olivia wants to sign up with BPO companies. What is the best method for doing this?
a. apply in person at each company
b. call REALTOR® associations
c. complete online applications
d. contact an MLS Service
40) An important piece of information to consider before accepting a BPO order is
a. when the property last sold.
b. whether the agent can complete the order by the required due date.
c. whether the property has previously been listed.
d. whether the property is a foreclosure.
41) When performing BPOs, agents should always carry a photo ID in the event that
a. the owner stops them and wants to know who they are.
b. the property owner wants the agent to list their house.
c. they decide to go to a listing appointment after taking photos.
d. they need to talk to the neighbors to gather information on the property.
42) Choose the compensation structure from lowest paid BPO order to highest paid BPO order.
a. desktop, exterior, drive-by
b. desktop, exterior, interior
c. drive-by, interior, desktop
d. interior, desktop, exterior
43) Interior BPO orders are generally due in
a. 1 day.
b. 3-5 days.
c. 4-6 days.
d. one week.
44) Tony has received an exterior BPO order. Before Tony accepts the order, it is best that he obtain all of this information EXCEPT the
a. assignment due date.
b. location of the property.
c. owner’s permission to access the property.
d. requirements for completing the BPO.
45) Which statement about BPOSG is FALSE?
a. BPOSG guidelines override BPO customer specifications.
b. BPOSG is a compilation of Standards and Guidelines for the BPO Industry.
c. Guidelines are best practices and must not be confused with Standards.
d. Standards are absolute and must be adhered to without exception.
46) When profile documents are required to be uploaded on a BPO company’s website, they generally include all of the following EXCEPT
a. agent/broker’s driver’s license.
b. copy of agent/broker’s real estate license.
c. proof of E&O Insurance.
d. W-9 form.
47) Juanita is contemplating whether to accept an exterior BPO order. Who should Juanita contact to help her decide?
a. another agent
b. no one
c. owner of the property
d. potential buyers
48) Molly accepted an exterior BPO order. A potential risk once she arrives at the property might be that the owner
a. claims she is trespassing.
b. refuses to answer the door.
c. threatens to call the police.
d. tries to harm her for taking photos of his property.
49) Rush BPO orders usually have a turnaround time of
a. eight hours.
b. ten hours.
c. one day.
d. three days.
50) Sarah prefers to work on interior orders as they pay more than exterior orders; however,
a. agents are given less time to complete them.
b. agents have to deal with the owner.
c. fewer agents want to do them.
d. there is a greater amount of work and more photos are required.
51) The documentation necessary to support an agent’s or appraiser’s analyses, opinions, and conclusions is called a
a. property report.
b. record file.
c. verification file.
d. workfile.
52) Determining the highest and best use of a property involves various tests. Which is NOT one of them?
a. economically feasible
b. functionally efficient
c. legally permissible
d. physically possible
53) Katie is both a real estate agent and an appraiser. Identify which statement is TRUE.
a. If Katie works on an appraisal assignment as an appraiser she must comply with USPAP.
b. Katie does not need to comply with USPAP when acting as an agent.
c. Katie does not need to keep a workfile if performing a BPO and is acting as an agent.
d. Katie is prohibited from performing BPOs.
54) Which approach to value is generally used when performing a BPO?
a. cost approach
b. income approach
c. market approach
d. substitution approach
55) How should an agent measure the GLA of a classic Cape Cod home?
a. measure the exterior of both the first and second floors
b. measure the exterior of the first floor and double it
c. measure the exterior of the first floor and the interior spaces of the second floor
d. measure the exterior of the first floor and multiply that figure by 75% for the second floor
56) If an agent enters a property and personal items and furniture are still in the house, she should
a. call a cleaning crew to empty the property.
b. call the owner and see when they will be picking up their things.
c. immediately leave the property.
d. take photos of the items for her report.
57) David is both an appraiser and a real estate agent. When acting as an agent and preparing a valuation that is NOT an appraisal, what must David do?
a. communicate to intended user(s) that he can perform in both capacities
b. comply with only the ETHICS RULE of USPAP since he acting in the role of an agent
c. comply with USPAP since he is both an agent and an appraiser
d. make it clear to intended user(s) that he is not acting as appraiser, but as a licensed real estate agent
58) Barry is an agent and has received a BPO assignment that requires a cost or income approach to produce credible value results. Best practice would dictate for him to
a. call an appraiser and have her complete the BPO.
b. complete the BPO using the cost or income approach.
c. decline the assignment.
d. complete the assignment using the sales comparison approach.
59) Identify which statement is TRUE regarding the distance between the subject property and its comparables.
a. average distance for all comparables
b. estimated guess is acceptable
c. exact distance between each comparable and the subject
d. not necessary to obtain for rural properties
60) When preparing a BPO “Credible” means
a. being capable of producing a report that is USPAP compliant.
b. being reliable and truthful.
c. having experience and credentials.
d. worthy of belief.
61) An example of functional obsolescence is
a. bedrooms on a different level than bathrooms.
b. peeling paint.
c. a property located next door to a sewage treatment plant.
d. a worn out roof.
62) Caroline is gathering data on population changes, economic changes, national influences, and unemployment. These types of data are
a. general.
b. relational.
c. specific.
d. trend.
63) Agent Bonnie enters a property to complete an interior BPO and notices that the carpets have a strong pet urine odor and are very dirty. Bonnie should
a. call the owner and ask if they will be cleaning the carpets.
b. comment about the carpet condition in her report and recommend having the carpet removed.
c. contact the lender to disclose the condition of the carpet.
d. obtain written carpet estimates to have the carpet replaced.
64) Which home would likely have the lowest effective age?
a. 80-year-old home that has had some restoration
b. 15-year-old home that has not had any repairs or upgrades
c. 25-year-old home that has been well maintained
d. 2-year-old home that has been severely damaged by occupants
65) Marcus is inspecting the interior of a property and observed that it has a poor design as well as an outdated kitchen and bath. This property is affected by
a. functional obsolescence.
b. functional utility.
c. physical obsolescence.
d. physical utility.
66) When making adjustments, some BPO companies simply require the entry of an initial with no dollar adjustment. Which is NOT an appropriate response?
a. E for equal
b. I for inferior
c. N for not equal
d. S for superior
67) The age of a structure based on all forces of physical deterioration and functional and external obsolescence, and not necessarily the structure’s age is the
a. actual age.
b. economic age.
c. effective age.
d. useful age.
68) Which describes the context of valuation?
a. the buyers preferences
b. the price or cost
c. the specific purchaser
d. the typical purchaser
69) Josh is gathering data on the subject site, deed restrictions, property zoning, etc. These are types of
a. general.
b. relational.
c. specific.
d. trend.
70) In actual practice, paired sales can ________ be found.
a. always
b. frequently
c. never
d. seldom
71) While inputting data into a BPO form, agent Stephanie is asked to identify the category in which the subject is located. The subject is located in an area with a population of 5,600. Which location category should Stephanie select?
a. rural
b. suburban properties
c. urbanized area
d. urbanized cluster/suburban area
72) If a required field is left blank during BPO order submission, the
a. form will still go through.
b. software will not let the form submit.
c. user can override the error message that displays.
d. user will have to go back to the website at a later date to edit.
73) Bracketing value means
a. the established value calculated by averaging the adjusted values of all comps.
b. the established value of the subject should fall within the range of the lowest sold comp’s adjusted value and the highest sold comp’s adjusted value.
c. ranking the value of all comparables to determine the lowest and highest values.
d. the value of what REOs are selling for in the neighborhood.
74) Which Fannie Mae appraisal form requires data that is equally useful for a BPO?
a. 1000A
b. 1003AS
c. 1004MC
d. 1005S
75) Which areas must have a core with a population density of 1,000 persons per square mile and may contain adjoining territory with at least 500 persons per square mile?
a. rural
b. suburban properties
c. urbanized area
d. urbanized cluster/suburban area
76) Tina wants to check on a BPO order that she submitted. What information should Tina provide to the valuation manager?
a. agent’s license number
b. agent’s Social Security number
c. date of BPO order
d. order number and property address
77) Which statement regarding bracketing is FALSE?
a. The repair costs must be added to figure the ‘as repaired’ value.
b. The subject’s ‘as is’ value cannot be lower than the lowest comparable.
c. The subject’s ‘as repaired’ value must not be higher than the highest comparable.
d. The suggested list price must be at least 2% lower than the market value.
78) Basically, the only homes that would be classified in excellent condition would be a
a. house that only requires a few minor repairs.
b. house that requires less than 5% of its value in repairs of windows and flooring.
c. newly constructed house that has never been occupied.
d. newly renovated house that has features like a new roof.
79) Terrance is looking at a 25-year-old-house. The kitchen and bath fixtures are original to the house but they are still functional and in good condition. The tile floors are outdated but in good condition. The home could use new gutters. How should this house be rated?
a. average
b. excellent
c. fair
d. good
80) If three sold comps were on the market for 99, 122, and 94 days, what would the average number of Days on Market (DOM) be?
a. 100
b. 102
c. 105
d. 112
81) Marcus is completing a BPO form and he must make certain that the final price of the subject’s ‘as is’ value and ‘as repaired’ value fall within the range created by the lowest and highest adjusted comparables. What is this practice called?
a. accelerated marketing
b. adjusting
c. bracketing
d. price tweaking
82) Miranda looked at a house that was in a small town surrounded by corn fields with a population of 945. How would this area be categorized?
a. provincial
b. rural
c. suburban
d. urban
83) The bracket value adjustments for agent Hank’s sold comps are from $139,500 to $142,500. Based on all the adjustments and the average condition of Hank’s subject, what might his established value of opinion be for the subject?
a. $135,900
b. $138,900
c. $140,500
d. $144,900
84) All BPO order forms require general property information on
a. comparables to the subject property.
b. properties adjacent to subject property.
c. subject property.
d. subject property and comparables.
85) BPO companies require that the ‘as repaired’ value be
a. 25% more than the ‘as is’ value.
b. the ‘as is’ value plus, minimally, the cost of repairs.
c. equal to the ‘as is’” value.
d. less than the ‘as is’ value.
86) The final adjusted values on these comps are #1 – $74,000, #2 – $76,500, #3 – $77,000. What is the acceptable bracketed value of the subject property?
a. $73,000
b. $73,999
c. $75,000
d. $77,500
87) The ‘as is’ value of a property is
a. a classification for a property in poor condition.
b. an indication the property is not worth the listing price.
c. the price value after completing repairs.
d. the value without any changes to the property.
88) If a buyer views a house to have functional obsolescence, they will make a __________ adjustment in the offering price.
a. casual
b. negative
c. positive
d. zero
89) Identify which characteristic is NOT considered functional obsolescence.
a. dated decor
b. location
c. outdated fixtures
d. poor design
90) If the average Days on Market (DOM) for sold comps is 104 days, what would be the normal marketing time range if it must be within /-15% of that average?
a. between 80-100
b. between 84-102
c. between 86-106
d. between 88-120
91) A property has had the furnace and hot water baseboard pipes removed, the walls and doors have holes in them, and the floor coverings must be replaced due to damage. This property’s condition would be
a. average.
b. fair.
c. good.
d. poor.
92) The lowest price in the BPO company’s three methods of marketing time would fall in which?
a. 30-day quick sale
b. 30- to 60-day repaired value
c. 90- to 120-day as is value
d. 90- to 120-day repaired value
93) Liza is working on an assignment from a BPO company that employs bracketing. The adjusted values for the comps are $81,500, $83,000, and $86,500. How should Liza determine the subject’s ‘as is’ value and ‘as repaired’ value?
a. average the first two comps for the ‘as is’ value: $82,250 and average the last two comps for the ‘as repaired’: $84,750
b. deduct 2% from the lowest comp: $79,870 and add 2% to the highest comp: $88,230
c. they must fall between the lowest comp: $81,500 and the highest comp: $86,500
d. use the lowest comp for the ‘as is’ value: $81,500 and the highest comp for the ‘as repaired’ value: $86,500
94) Maria needs to calculate the normal marketing time for a property. In order to determine this, what should she be looking at?
a. active comps
b. inactive comps
c. sold comps
d. special comps
95) Most MLS services provide original list date, original list price, and date of most recent price reduction. This information is typically stored in a(n) ________ file.
a. additional information
b. history
c. pertinent data
d. statistics
96) A section of the BPO form that contains additional information to explain any issues in the marketing area, such as crime rate, unemployment, or other economic factors affecting the value of a property, is called a(n)
a. addendum.
b. attachment.
c. extension.
d. supplement.
97) If a buyer views a house to have functional obsolescence, they will make a __________ adjustment in the offering price.
a. casual
b. negative
c. positive
d. zero
98) For a BPO report, which is NOT a typical marketing time for an ‘as is’ or ‘as repaired’ value?
a. 0-60 days
b. 0-90 days
c. 90-120 days
d. 120+ days
99) The agency that keeps a list of reported clandestine drug labs is the
a. C.D.C.
b. D.E.A.
c. F.B.I.
d. N.A.R.
100) The type of self-defense weapon an agent can carry while conducting a BPO is determined by the
a. agent.
b. lending institution for whom he is conducting the BPO.
c. local Board of REALTORS®.
d. National Board of REALTORS®.
101) Three things an agent should always carry with him when entering a house are a
a. camera, a weapon, and a flashlight.
b. cell phone, a camera, and a flashlight.
c. cell phone, a camera, and a printed map.
d. cell phone, a camera, and a weapon.
102) For safety reasons, it is best to
a. back the vehicle into the driveway of the property to park.
b. not park at all; arrange for a drop-off.
c. park on the street.
d. park the vehicle into the driveway of the property.
103) Nancy just arrived at a property to perform an interior BPO. Once inside the property, Nancy should first check to see
a. if anything was left in the house.
b. if the lights work.
c. if the furnace is turned on.
d. where other exits are located.
104) Real estate agent Sandy understands that interior BPOs can be somewhat riskier in regards to her safety than exterior BPOs because
a. the conditions may be poor and potentially dangerous.
b. the locks may have been changed and no one has the key.
c. many properties are vacant and someone could be hiding out or temporarily living inside.
d. they are usually located in more rural areas than exterior BPOs.
105) When an agent leaves his office alone to complete an interior BPO inspection, he should
a. always let someone at the office know where he is going.
b. call the owner first.
c. call the Valuation Manager.
d. notify the police.
106) The “buddy” system is defined as
a. networking with a group of real estate agents.
b. sending an assistant to the property to take photos.
c. starting a BPO exchange club.
d. taking someone with you to a property instead of going alone.
107) Rosalyn does not feel comfortable carrying a weapon. She’s afraid that someone will overpower her and use it on her. What would be the BEST option for her protection?
a. get a police escort every time she performs an interior BPO
b. obtain a carry permit and a gun
c. purchase a taser
d. take a self-defense course
108) When purchasing a flashlight for property inspections, the best type of flashlight to purchase is a
a. compact flashlight that will fit in a purse or briefcase.
b. glow in the dark model.
c. lightweight plastic light for convenience.
d. long-handled metal flashlight that can also be used as a weapon.
109) Mariana arrives at a property to conduct an interior BPO and as she is walking up to the porch, she sees a lot of trash scattered around the house, including coffee filters, empty boxes of cold medicine, and plastic jugs. What should Mariana do?
a. Go in and conduct the BPO so that she can get paid.
b. Knock on the door and ask the owner to clean up the mess so that she can take pictures.
c. Leave and call the lender who has requested the BPO and inform them of the situation.
d. Leave and call the police.
110) Upon entering a property, the first thing an agent should do is
a. look for other exit doors.
b. make sure her flashlight is working.
c. make sure the battery in the camera is charged.
d. phone a friend, if alone.
111) Identify which of the following is NOT a safety precaution an agent should take when preparing to do a BPO.
a. bring a packed lunch in case you are detained
b. carry a cell phone with you at all times
c. leave an itinerary with coworkers at the office
d. look through a window before entering a property
112) Brokerage office policies should contain a safety procedure with a distress code, making sure
a. the BPO company is aware of the procedure in the event of a crisis.
b. the police know the code in case the agent encounters trouble at the property.
c. every person in the brokerage firm is familiar with the policy and knows the distress code.
d. it is on file with the National Association of REALTORS®.
113) Identify which statement is most TRUE.
a. Go directly to the property if unfamiliar with an area to get the BPO done quickly.
b. One should rely solely on GPS to get around unfamiliar areas.
c. Printed maps are obsolete and shouldn’t be used in any circumstance.
d. You should have printed maps as well as GPS when going to an unfamiliar area.
114) For safety reasons, the best time to conduct an inspection is
a. early morning.
b. lunchtime.
c. late afternoon.
d. right after dark.
115) Taking someone with you to a property instead of going alone is called the
a. BPO exchange club.
b. buddy system.
c. partner watch program.
d. two for one program.
116) Agent Lisa enters a property and has a gut feeling that something is wrong. She should
a. hurry through the inspection as fast as she can.
b. go back to her car and get her pepper spray to carry with her.
c. ignore the paranoid feelings and continue the inspection.
d. leave and bring someone back with her the next time.
117) Devan arrives at a house for an inspection, opens the front door, and sees a guy running out the back door. What should Devan do?
a. call the lender to report the intruder and let the lender take it from there
b. continue going into the property and complete the inspection
c. leave the property and call the police
d. run after the man and tackle him
118) Agent Robert notices some unusual items discarded in waste cans by the garage of a property in which he was assigned to perform an interior BPO. Robert suspects the vacant property may contain a meth lab, so he calls the police. All of these items are typically indicators that a meth lab may be present EXCEPT
a. cat litter bags.
b. excess packaging from cold medicines.
c. propane tanks.
d. used coffee filters with red stains.
119) Identify which person is BEST prepared for a BPO that requires an interior inspection.
a. Annie has a charged cell phone, left a note of her whereabouts at the office, parked on the street, and wore a women’s business suit with a skirt and high heels.
b. Brenda has a charged cell phone and camera battery, told her secretary where she was going, parked in the driveway and wore slacks, button-down shirt, name badge, and loafers.
c. Derrick has a charged cell phone and camera battery, told his office manager where he was going, parked on the street and wore slacks, button-down shirt, name badge, and loafers.
d. Larry phoned a friend to tell them his whereabouts, has a charged cell phone and camera battery, backed his car into the driveway, and is wearing cargo shorts, a flak jacket, and combat boots.
120) Select the statement that is most TRUE regarding proper attire for conducting a BPO.
a. Both men and women can wear business casual, with long pants, a button-down shirt, and closed-toed shoes; you should have a professional presence in case of any encounters, yet be able to move freely.
b. Both men and women can wear shorts, t-shirts, and sandals; no one is supposed to be on the property so no one will see them.
c. It really doesn’t matter. Both women and men should wear whatever is comfortable.
d. Men should wear a business suit and women should wear a skirt, blazer, and pumps; you are conducting business and should look most professional.
121) As Tammy approached a house, she noticed the curtains in the windows blacked out and the area was littered with trash and smelled like cat urine. She should leave the property because these are indications of
a. the hoarding of feral cats.
b. a meth lab.
c. a recent fire.
d. a vagrant squatting.
122) The primary reason agents need to concern themselves with safety when completing interior BPOs of vacant properties is because
a. neighbors might not like that they are taking photos in the neighborhood.
b. previous owners could have left the house in poor condition.
c. someone could be inside.
d. someone might call the police.
123) Antonio is outside of a house taking pictures when a neighbor comes up to him and asks what he is doing, Antonio should
a. avoid any interaction and go to his car and drive away.
b. introduce himself, show his badge or ID, and explain that he is taking pictures for a third party who represents the lender.
c. take the man’s picture and a picture of his property as well, then call the police.
d. tell the man it is none of his business as he is only there for this property and continue taking pictures.
124) A distress code is a
a. code number used on a BPO form to identify a property in poor condition.
b. nickname given to people who are found occupying an abandoned property.
c. special code used when calling the police to indicate an agent is in trouble.
d. word or phrase known by the entire brokerage office that an agent will say if she is in trouble.
125) When considering self-defense weapons, agents should
a. check the broker’s office policy to see if weapons are allowed to be carried.
b. check state and local laws and get trained on how to use the weapon.
c. determine which weapon will be the most effective.
d. try various weapons before purchasing.
126) What is the documentation that supports an agent’s or appraiser’s analysis, opinions, and conclusions called?
a. property report
b. record file
c. verification file
d. workfile
127) The Dodd-Frank Act prohibits financial institutions from using BPOs in lieu of appraisals for which purpose?
a. bankruptcy
b. PMI removal
c. purchase money loan origination
d. refinancing
128) Once inside a property to perform an interior BPO, what should an agent check first?
a. if anything was left in the cabinets
b. if the furnace is turned on
c. if the lights work
d. where other exits are located
129) Which is one requirement of BPO companies regarding agents?
a. be members of a certified appraiser’s board
b. engage other agents in completing orders
c. take their own photos and view the property personally
d. utilize a professional photographer
130) Keeping safety considerations in mind, when conducting a BPO, what is the best practice for parking a car?
a. back the vehicle into the driveway of the property to park
b. do not park at all; instead, ride the bus
c. park on the street
d. pull the vehicle in the driveway of the property to park
131) Which is NOT one of the tests for determining the highest and best use of a property?
a. economically feasible
b. functionally efficient
c. legally permissible
d. physically possible
132) An area that has a core with a population density of 1,000 persons per square mile and has adjoining territory with at least 500 persons per square mile is classified as a(n)
a. central city cluster.
b. rural area.
c. urbanized area.
d. urbanized cluster/suburban area.
133) Why did BPOs become popular with lenders?
a. BPOs are more accurate than appraisals.
b. The Dodd-Frank Act requires them for loan origination.
c. They are used in all mortgage loan transactions.
d. They offer a cheap valuation solution.
134) The best method for signing up with BPO companies is to
a. apply in person at each company.
b. call REALTOR® associations.
c. complete online applications.
d. contact an MLS Service.
135) What should a real estate agent do before considering performing BPOs?
a. check with his broker and confirm the laws regarding performing BPOs in his state
b. get permission from his local Board of REALTORS®
c. hire someone to assist with the work
d. start a side business outside the office
136) Francisco is conducting an interior BPO and, when he enters the property, he notices that personal items and furniture are still in the house. What should he do?
a. call a cleaning company to come and empty the property
b. contact the owners and see when they plan to pick up their belongings
c. immediately leave the property
d. take photos of the items to include in his report
137) What type of BPO assignment does NOT require visiting the property?
a. desktop
b. drive-by
c. MLS
d. off-site
138) Brandon is performing an interior BPO and notices these characteristics of the property. Which one is an example of functional obsolescence?
a. bedrooms on a different level than bathrooms
b. peeling paint
c. property is located next door to a crack house
d. worn out roof
139) Where do BPO orders generally come from?
a. owner of the property
b. sheriff’s department
c. title companies
d. third-party companies hired by the lender
140) If an agent enters a property and has a gut feeling that something is wrong, what is the best thing to do?
a. go back to her car and get her pepper spray to carry with her
b. ignore the paranoid feelings and continue the inspection
c. immediately call the police
d. leave and bring someone back with her the next time
141) Benita is conducting a BPO on a brand new condo in which the builder went bankrupt before he could sell. The construction was completed. How should this property be rated?
a. excellent
b. good
c. average
d. fair
142) How are agents who perform BPOs paid?
a. as full-time employees
b. as independent contractors
c. as part-time employees
d. only through a brokerage
143) What is a distress code?
a. code number used on a BPO form to identify a property in poor condition
b. nickname given to people who are found occupying an abandoned property
c. special code used when calling the police to indicate an agent is in trouble
d. word or phrase known by the entire office that an agent will say if she is in trouble
144) Marjorie arrives at a house for an inspection, opens the front door, and sees a guy running out the back door. What should Marjorie do?
a. call the lender to report the intruder and let the lender take it from there
b. continue going into the property and complete the inspection
c. leave the property and call the police
d. tell him to stop, and then zap him with a taser
145) Upon arriving at a property to perform an interior inspection, what should an agent NOT do?
a. be aware of his surroundings before entering the property
b. charge his phone in his car while he’s inside
c. knock to make a lot of noise when unlocking the door
d. park his car so that he can’t be blocked in
146) Which action should an agent performing a BPO take regarding an unheated sunroom?
a. include the area in the below-grade area
b. include as living space
c. include the square footage in the GLA
d. not include as part of the GLA
147) Deanna is thinking about accepting a BPO order. What information is important for her to review before deciding?
a. property design
b. property location
c. property size
d. property taxes
148) The final adjusted values on these comps are #1 – $83,000, #2 – $84,500, #3 – $88,000. What is the acceptable bracketed value of the subject property?
a. 81000
b. 82999
c. 87000
d. 88500
149) When is the safest time to conduct an inspection?
a. early morning
b. lunchtime
c. late afternoon
d. right after dark
150) What is the process called when a lender postpones foreclosure proceedings to give the borrower more time to make the overdue payments?
a. forbearance plan
b. friendly foreclosure
c. loan modification
d. pre-foreclosure
151) What is a major issue for an individual who is an appraiser and an agent and performs both appraisals and BPOs?
a. determining whether he can eventually list the property
b. determining which activities can be done simultaneously
c. following the strict regulations for agents who perform both appraisals and BPOs
d. whether he is perceived as acting as an appraiser or an agent
152) As Derrick walks up the sidewalk toward the house for an inspection, he notices the curtains in the windows looked blackened with smoke, the area is littered with trash, and it smells like cat urine. He should leave the property because these are indications of
a. the hoarding of feral cats.
b. a meth lab.
c. a recent fire.
d. a vagrant squatting.
153) What advantage do agents have in completing BPOs?
a. agents are qualified to use any of the approaches to value to obtain the most accurate property value
b. agents have daily exposure to the market and can see how buyers react to different properties and make adjustments for differences among properties
c. agents must adhere to USPAP rules
d. it’s easier for agents to complete BPOs because they are not as busy as appraisers
154) Who is responsible for determining the type of self-defense weapon agents can carry while conducting BPOs?
a. agent
b. lending institution for whom they are conducting the BPO
c. local Board of REALTORS®
d. National Board of REALTORS®
155) In the REO segment, how do mortgage servicers determine an asking price for the property?
a. average all of the BPO estimations of value
b. compare two BPOs, or a BPO and an appraisal
c. use the highest appraisal value
d. use the lowest BPO estimated value
156) A typical marketing time for an ‘as is’ or ‘as repaired’ value for a BPO report would NOT be
a. 0-60 days.
b. 0-90 days.
c. 90-120 days.
d. 120+ days.
157) Paul is working on a BPO and the lender wants the ‘as repaired’ value of the property. To calculate this, Paul will
a. add the ‘as is’ value plus, minimally, the cost of repairs.
b. decrease the ‘as is’ value by 5%.
c. decrease the ‘as is’ value by 25%.
d. increase the ‘as is’ value by 25%.
158) What safety procedure should an agent follow before leaving his office when he is heading out by himself to complete an interior BPO inspection?
a. call the owner first
b. call the valuation manager
c. let someone at the office know where he is going
d. notify the police
159) The approach to value that is generally used when performing a BPO is the
a. cost approach.
b. income approach.
c. market approach.
d. substitution approach.
160) Interior BPO orders pay more than exterior orders; however,
a. agents are given less time to complete them.
b. agents have to deal with the owner.
c. fewer agents want to do them.
d. there is a greater amount of work and more photos are require
161) If an agent receives an order for a pre-foreclosure BPO on a property that is occupied, what should the agent do?
a. ask the owner to view the interior of the property
b. assume the interior is usually in better condition than the exterior
c. perform an exterior-only valuation
d. value the property higher than for an occupied property, since the owner is living there and taking care of it
162) Data on physical improvement characteristics, site size and topography, and view from the subject property are
a. general data.
b. relational data.
c. specific data.
d. trend data.
163) If the interior of a property has a poor design, outdated fixtures, and dated decor, it would be affected by
a. functional obsolescence.
b. functional utility.
c. physical obsolescence.
d. physical utility.
164) Leslie is performing a BPO. What approach to value should she take?
a. cost
b. income
c. market
d. substitution
165) If comparables are between 1,200 square feet and 1,550 square feet and the sales prices range from $75 per square foot to $85 per square foot, what would be the price range?
a. $90,000 to $131,750
b. $100,000 to $142,750
c. $120,500 to $155,000
d. $127,000 to $162,500
166) Approval of a short sale is more difficult when
a. the BPO value is less than the equity.
b. the primary lienholder requests lots of documentation from the borrower.
c. the real estate agent will not reduce his commission.
d. there is a second mortgage lienholder.
167) Brenda has found that the three sold comps of her subject property were on the market for 76, 121, and 87 days. What would the average number of days on market (DOM) be?
a. 93
b. 95
c. 96
d. 98
168) If an agent discusses the results of his BPO report with the owner of the property, this is
a. good business practice.
b. mandatory, if the property owner asks the agent.
c. a violation of BPOSG standards.
d. a violation of state license laws.
169) A valuation manager is likely to assign a BPO order to the agent who complies with all of these conditions EXCEPT for
a. agreeing to the stated price and the terms.
b. being the first one to accept the order.
c. being the sales leader of his company’s team.
d. having the ability to complete the order by the due date.
170) Which are the two most common types of BPOs?
a. desktop and exterior
b. drive-by and exterior
c. exterior and interior
d. interior and desktop
171) Which is required when pulling comparables for a Broker Price Opinion order?
a. three sold comparables
b. three listed and three sold comparables
c. three sold and three expired comparables
d. three sold, three expired, and three listed comparables
172) Nicholas has received a BPO order for removing a PMI. What is the purpose of a PMI?
a. covers the home in case of loss due to a flood, fire, or from acts of nature
b. protects the borrower in case of foreclosure
c. pays the mortgage payments if the borrower is unable to pay them
d. reduces the lender’s risk of loss if the borrower defaults on the loan
173) Which of these types of houses would likely be the most simple to measure?
a. bi-level
b. one-and-one-half story
c. split-level
d. two-story
174) What is a loan modification?
a. buyer assumes the seller’s mortgage
b. PMI has been paid down and an appraisal has been ordered
c. same thing as refinancing
d. terms of the loan are changed through lowering the interest rate, extending the payoff date, lowering the monthly payment, or a combination
175) Why do lenders use BPOs?
a. determine an agent’s competency
b. determine real estate commissions
c. establish a current value
d. establish debtor’s payoff
176) Which would have the lowest price of a BPO company’s three methods of marketing time?
a. 30-day quick sale
b. 30- to 60-day repaired value
c. 90- to 120-day as is value
d. 90- to 120-day repaired value
177) If the average Days on Market (DOM) for sold comps is 99 days, what would be the normal marketing time range if it must be within /-15% of that average?
a. between 80-100
b. between 83-107
c. between 84-114
d. between 88-120
178) Data on population changes, economic changes, national influences, and unemployment are
a. general data.
b. relational data.
c. specific data.
d. trend data.
179) Which of these homes would have the lowest effective age?
a. 75-year-old home that has had some restoration
b. 25-year-old home that has been well maintained
c. 16-year-old home that has not had any repairs or upgrades
d. 3-year-old home that has been severely damaged by occupants
180) An agent will need to provide all of this information when completing an application to perform BPOs EXCEPT a
a. copy of the agent’s or broker’s real estate license.
b. copy of Errors and Omissions Insurance.
c. log of previous sales transactions.
d. Tax ID number or Social Security number.
181) Bracketing is
a. the established value calculated by averaging the adjusted values of all comps.
b. the established value of the subject by concluding within the range of the lowest sold comp’s adjusted value and the highest sold comp’s adjusted value.
c. ranking the value of all comparables to determine the lowest and highest values.
d. the value of what REOs are selling for in the neighborhood.
182) What is the primary reason that agents need to concern themselves with safety when completing interior BPOs of vacant properties?
a. neighbors might not like that they are taking photos in the neighborhood
b. previous owners could have left the house in poor condition
c. someone could be inside
d. someone might call the police
183) Juan’s client wants him to provide a 30-day value for a property where the typical marketing time is 120 days. The value of the property will
a. have to be adjusted upward.
b. have to be discounted.
c. have to be higher than averaged comps.
d. not need to be adjusted.
184) When an agent is deciding whether to accept an exterior BPO order, she should contact
a. another agent.
b. no one.
c. owner of the property.
d. potential buyers.
185) In BPO and asset management companies, the individuals responsible for assigning BPOs are called
a. asset coordinators.
b. BPO report directors.
c. evaluation managers.
d. valuation managers.
186) Maurice is both a real estate agent and an appraiser. Identify which statement is TRUE.
a. If Maurice works on an appraisal assignment as an appraiser, he must comply with USPAP.
b. Maurice does not need to comply with USPAP when acting as an agent.
c. Maurice does not need to keep a workfile if performing a BPO and acting as an agent.
d. Maurice is prohibited from performing BPOs.
187) Clarence is preparing an exterior BPO. What is typically required of these?
a. three expired, three listed, and three sold comps
b. three listed and three sold comps
c. three sold and three pending comps
d. two listed and two expired comps
188) Identify which is NOT a safety precaution an agent should take when preparing to do a BPO.
a. carry a large metal flashlight that could double as a weapon
b. leave an itinerary with coworkers at the office
c. leave their cell phone in the car
d. look through a window before entering a property
189) Certified Residential Appraisers are authorized to appraise which types of real estate?
a. all types of real estate
b. one- to four-unit residential properties
c. one- to four-unit residential properties and special purpose properties
d. residential, commercial, and special purpose real estate
190) BPO orders in today’s market CANNOT be used for
a. foreclosures and deed in lieu of foreclosure.
b. loan modifications.
c. purchase money loan originations.
d. short sales.
191) What is the ‘as is’ value of a property?
a. classification of a property in poor condition
b. indication the property is not worth the listing price
c. price value after completing repairs
d. value without any changes to the property
192) In what timeframe are interior BPO orders generally due?
a. 1 day
b. 3-5 days
c. 4-6 days
d. one week
193) Deidre needs to calculate the normal marketing time for a property. Which comps should she be looking at?
a. active comps
b. inactive comps
c. sold comps
d. special comps
194) Jennifer is working an interior BPO order, which typically requires photos of
a. all rooms, including damages and exterior photos.
b. any rooms with damages.
c. bedrooms and bathrooms.
d. bedrooms and kitchen.
195) In what timeframe are exterior BPO orders generally due?
a. 1 day
b. 2-3 days
c. 4-6 days
d. one week
196) Which principle of value states that a property’s value is equal to the value, or price, of equivalent, competitive properties?
a. comparison
b. equivalency
c. substitution
d. valuation

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