BPO is a familiar concept in the real estate industry and stands for Broker Price Opinion. Basically, it is a quicker and economical property valuation method that is often preferred to a full-blown, expensive appraisal. Lenders are already at loss when there is a consistent default on their loan repayment and a foreclosure isn't the best of the outcomes for them. In such a scenario, all incremental costs exert additional burden on the bottom line finances of the lenders. Hence, BPO is used to curtail expenses and obtain reasonably accurate property valuations. Basically, BPO is used for assessing property value in the following cases:
- Short sales
- home equity lines of credit
- home equity loans
- due diligence for investors
The best part is that BPOs have a quick turn-around time and are quite reliable. Using the information provided, banks and lenders can make informed financial decisions on the properties in question.
A real estate broker, or an agent acting on behalf of an employing broker, provides an estimate of the probable selling price of a residential or commercial property in a BPO report. A BPO report includes information about the local and regional real estate market, an analysis of the neighborhood, and sales information for comparable properties in the same neighborhood.
Broker Price Opinions are completed by real estate brokers either for banks/financial institutions in consideration of the fees, or in the hopes of receiving a sales listing for the property. Only the following real estate professionals with active licenses can perform Broker Price Opinion:
- appraisers acting in an agent/broker capacity
It is best to avail the services of a reputed BPO Company specializing in the particular area, because of their experience. It is very important to ensure that the BPO is comprehensive and reliable before a decision with financial implications is arrived at. We are trusted by numerous financial institutions for BPO because of our service standards and reliability. We employ and empanel some of the most experienced and skilled real-estate professionals who have thousands of BPOs to their credit.