What Is A BPO?

BPO - The Broker's Price Opinion:

Often times when I meet with potential clients who are interested in pursuing a short sale, a question pops up during my explanation of processes when I talk about the BPO - to explain what a BPO is.

The BPO is the Broker's Price Opinion.  It is similar to an appraisal but it is performed by another Real Estate Agent.  Hence, it is an opinion of the value of the home at the current time.  There are many requirements for the BPO such as similar area, similar age, similar style, similar characteristics (bedrooms/bathrooms/size/etc).  Although the BPO is not as in depth as an appraisal, it is meant to give the lender an unbiased opinion as to the property value.

Once the BPO is complete, the lender will be able to continue their due diligence to see if the offer that was presented for consideration of short sale is a reasonable offer.  In my opinion, this is the number that the lender will base all it's numbers off of when considering the short sale.

To learn more about the short sale process, please contact us today.