What is a Broker Price opinion?
A Broker Price Opinion (BPO) is an estimate of a property's value typically provided by a licensed real estate broker or agent. It is often used in situations where a full appraisal is not necessary or too costly. BPOs are commonly used by banks, lenders, or mortgage companies when they need a quick assessment of a property's value, such as in the following cases:
- Foreclosures
- Short sales
- Loan modifications
- Refinancing decisions
- Evaluating collateral for loans
There are two types of BPOs:
- Exterior BPO (Drive-by BPO): The broker only inspects the property from the outside.
- Interior BPO: The broker also goes inside the property for a more detailed evaluation.
A BPO is typically less detailed and less expensive than a formal appraisal, but it provides a reasonable estimate of a property's current market value. It is based on various factors like the condition of the property, comparable sales in the area, and market trends.
