A Broker’s Price Opinion (BPO) is the process in which a hired sales agent determines the selling prices of a real estate property. BPO’s are commonly used when lenders believe that the expense and delay of an appraisal is unnecessary and will order a BPO through a Real Estate Broker. The reasons in which a BPO is performed typically are to avoid the cost of an appraisal, because of delinquent payments and pending foreclosure, and in a refinance situation.
BPO’s are typically ordered on REO properties, foreclosures, and short sales. When a lender is considering foreclosure or working with the borrower to find a solution, a BPO is performed in order to get a reliable estimate of the current value of the property so they can compare it to the remaining mortgage balance and come up with a solution.
There are two main types of BPO’s- Drive By BPO and Internal BPO. Generally, in a Drive By BPO the broker will not have exit their vehicle or enter the home but the extent of a Drive By BPO varies depending on the company and situation. Likewise, an Internal BPO varies in tasks and requirements but it is more involved. It usually will require contact with a homeowner in foreclosure or a tenant who is unaware of the situation.
The price determined in the BPO is entered into a 2-3 page BPO report and covers a variety of information including the neighborhood analysis of the property, comparable properties, and local and regional market information. Factors that will affect the price in a BPO are values of similar properties in the area, sales trends of the neighborhood, and the amount of repairs needed to prepare the property for sale.
IMAX Premier has an extensive network of connections with banks and lenders throughout San Diego, Los Angeles, Orange, Riverside, and Venture counties and we offer BPO’s to lenders, financial institutions, an investors. We have a reputation for our expertise and excellent customer service.