Does any one know what a BPO is?
November 13, 2011 - 8:26 pm
I would like to know what is a BPO regarding realestate pricing? How does this work with a normal sale of a house, short sales, and or foreclosures, Thanks for the answers
Hi,
A BPO is a "Broker’s price opinion" of real estate. Typically this will be ordered by a bank looking to foreclose or as a preliminary estimate of a property before a refinance. The broker gets paid about 50-100.00 from the bank to go out and take exterior pictures of the home, look up comparable sales and current listings and fill out an estimate and send it all back to the bank or finance company. It is kind of an informal appraisal.
November 14th, 2011 at 1:59 am
Broker Price Opinion
There are a number of reasons when a professional valuation of property is desired yet a formal appraisal is not required. In these instances, a Broker Price Opinion (BPO) service is ideal.
The BPO of a residential property is conducted by a local, licensed real estate professional. The report combines information from a drive-by exterior examination, external data sources, previous sale data, property assessment data, recent comparable sales and current neighborhood listings, as well as a photograph of the subject property.
The BPO includes estimate of repairs to obtain fair market value, neighborhood information, and value estimate (90, 120, 180 day marketing time for "as is" and "as repaired" values). Photographs include subject and street scene photographs. Front photographs of all comparable sales are also available for an additional fee. This product is not an appraisal and does not include an inspection of the interior of the property.
References :
November 14th, 2011 at 2:47 am
Hi,
A BPO is a "Broker’s price opinion" of real estate. Typically this will be ordered by a bank looking to foreclose or as a preliminary estimate of a property before a refinance. The broker gets paid about 50-100.00 from the bank to go out and take exterior pictures of the home, look up comparable sales and current listings and fill out an estimate and send it all back to the bank or finance company. It is kind of an informal appraisal.
References :
I have been a licensed Real Estate agent and buyer’s broker for 10 years, and have done countless BPOs for banks/mortgage companies.
November 14th, 2011 at 3:26 am
Andres, a BPO is a "Broker’s Price Opinion", it’s more or less a market analysis of value in the current market. It’s not an appraisal and shouldn’t be used for establishing value for a loan. It is being used and abused right now by most lenders.
References :