What does BPO (Broker Price Opinion) mean?
BPO is an acronym for Broker Price Opinion, it is most commonly referred to as a BPO in the real estate community.
Why is the purpose of a BPO?
A BPO is performed to determine what the value would be when the investor is dealing with a property that may be in loss mitigation or collections.
What is in a Brokers Price Opinion report?
The BPO is a combination of information from doing a drive by visual inspection of the property, looking at local data online, property information, previous sale information and most importantly, looking at previous sales in the immediate area. The most recent sales are a huge factor to help you determine what the home would sell for within a 90 day period.
Why do you need a Broker Price Opinion?
BPO's help lenders determine what the value of a home will be, this will provide them with a reliable accurate opinion of a property value and what it would sell for versus an appraisal that will tell the investor or bank what the value may be. The investor or bank wants to know from a broker what they feel this home would sell for in 90 days and sometimes that is not what the appraised value is.