How to Complete a BPO on a Vacant Property
Vacant homes need extra attention to condition, security and marketing time. Here is what to check.
Many BPO orders come from lenders and servicers dealing with homes that nobody lives in. A vacant property changes what the client needs to know, and a report that treats it like an occupied home can miss the point.
Confirm it is really vacant
Look for the usual signs: overgrown landscaping, piled-up mail or flyers, no curtains or furniture visible, utility meters that appear off, or a notice posted on the door. Report what you saw rather than guessing. "Appears vacant: no window coverings, uncollected flyers on porch" is more useful than a bare checkbox.
Check security and exposure
- Doors and windows: closed, locked, boarded or broken?
- Signs of break-in, squatting or vandalism.
- Pool or spa condition, which can become a safety hazard when neglected.
- Roof, gutters and visible water damage that will worsen without maintenance.
Photograph the problems clearly
Vacant homes often deteriorate quickly. Take the standard set of photos, then add close shots of anything that affects value or safety. Follow the vendor's photo rules and do not enter the property unless your order explicitly allows it.
Think about marketability
A vacant, neglected house usually sells to a narrower pool of buyers. That can affect both your value and your marketing time. Choose comps that reflect similar condition where possible, and explain in your comments why a typical owner-occupied sale may not be a fair comparison.
Note anything urgent
If you see an open door, active leak or obvious hazard, say so plainly in the report. Many clients want that flagged even when it is outside the valuation itself. Stay outside and stay safe; your job is to observe and report.
Explain the value impact
Clients want to know how vacancy affects price, not just that the house is empty. If neglect, missing fixtures or security problems would push buyers toward a discount, say so and tie it to your comps. If the home is vacant but well maintained, say that too; vacancy alone does not always mean a lower value. A clear sentence on how you weighed condition and buyer pool makes the report easier to accept.
Related: REO, short sale and pre-foreclosure BPOs.