There are several ways to figure our the value of a home. In this post, I will discuss Broker Price Opinions -BPOs.
BPOs are usually performed for banks on behalf of the bank. in order to get an estimate of the value of the "asset" they have their money secured upon. Sometimes, they are done for legal reasons such as divorce, bankruptcy and estate planning.
In Oregon, brokers can perform BPOs on most properties, but not all.
In a BPO, the real estate broker typically does not view the interior of the property and if they do, it is more cursory. Although, it is a limited valuation model, the BPO price can hold weight in future negotiations between the "bank" or "opposing side", and the owner or the potential buyer. Many times these valuations are done quickly and not very thoroughly and the "bad" value is now in the system, and it can be difficult to re-establish a more correct number.
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