Short Sales: What is a BPO?

By
Real Estate Agent with RE/MAX Action
IL – If you have been reading about short sales, then you have probably heard the term "BPO" and wondered what it meant. BPO stands for Broker's Price Opinion. A Broker's Price Opinion is when a licensed real estate agent gives their opinion of the value of a property. That value is what the lenders use to process the short sale. Most short sale approvals or denials are based off of that opinion of value. The agent goes thru all the recent sales of properties similar to the property they are valuating. They want to find the 3 closest comparable sales. Discover how other sellers successfully did a short sale to avoid foreclosure by clicking here. The more recent a sale is then the closer of a comparable it is considered to be. The same goes for properties that are close geographically (in the same neighborhood is preferred) and close in size and number of bedrooms or baths. Most agents are not appraisers. Because an appraiser's license is required to appraiser properties they give their opinion of the value. Now, I'm sure you are wondering, " Why do the lenders use these rather than an appraisal?" Here is why. Many people think they are more accurate of a valuation than an appraisal. Agents are more in tune with exactly what a property can sell for. After all, whatever opinion of value they put for a property is usually supposed to be backed up later by a sale for that price. That causes agents to be more accurate with their valuations. That accuracy is why the lenders use their valuations rather than an appraisal. Thinking about a short sale? I can help you short sale your property and never pay the bank another penny. Send me an e-mail at dtoomey@remax.net. I will contact you for a free consultation. When we talk, I will explain how the process works in detail and answer any questions you may have. Or, if you prefer, you can call me at (847) 338-0180 Discover how other sellers successfully completed a short sale and request a free consultation by clicking here. Thinking about a loan modification? Our loan modification kit has the instructions you will need to get a loan modification approved with your bank. Click here to request a copy. Thanks for reading this, Dennis Toomey. Dennis is a Real Estate Broker at RE/MAX Action. Short Sales Realtor: Phone: (847) 338-0180. dtoomey@remax.net. For Real Estate that's hassle free, just pick up the phone and leave it TOoMEy! View My homes for sale at www.HouseByZip.com. Dennis Toomey specializes in loan modification assistance and short sales in Elgin Illinois. Elgin Loan Modification Help, Elgin Short Sales. Elgin Short Sale Realtor IL Short Sales. Realtor. Copyright 2010 SFI Marketing Institute, LLC. All Rights Reserved. This is not intended as legal, technical, or tax advice. Please speak with a licensed professional before making any decision. Information is deemed reliable but not guaranteed as of the date of writing. The views expressed here are Dennis Toomey's personal views and do not reflect the views of RE/MAX Action. This information on Short Sales: What is a BPO? is provided as a courtesy to our viewers to help them make informed decisions
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Rainmaker
409,251
Karen Monsour
Coldwell Banker Fort Lauderdale Beach - Fort Lauderdale, FL
REALTOR, SSRS - Sells FL Waterfront, Short Sale Expert!

Dennis,

Very good description and great links you have provided.  I know there are many agents that don't really understand what a BPO really means.  Thanks. Suggested.

Feb 16, 2011 01:56 PM #1
Rainer
383,457
Jay Schmitt
Keller Williams Keystone Realty - Gettysburg, PA
Gettysburg Real Estate Agent

Very good information and helpful as must customers are confused about these things.

Feb 16, 2011 01:59 PM #2
Rainmaker
276,282
Tony Morganti
RE/MAX Crossroads in Cuyahoga Falls and Stow, Ohio - Cuyahoga Falls, OH
CRS, ABR, SRES - Cuyahoga Falls, Stow

Dennis - I sometimes wonder if they use Realtors for a BPO rather than an appraiser because it will cost more to use an appraiser.  Personally, I think the appraiser would be a better choice as long as it is an appraiser who is very active in the community in which the property is located, not an out of area appraiser hired through an appraisal management company.

Feb 16, 2011 02:46 PM #5
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Rainmaker
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Dennis Toomey

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