Real Estate Bpo Form
A Broker Price Opinion, or BPO, is the evaluation and estimation of a property that is typically performed by a local real estate broker. A BPO is more accurate than an AVM (Automated Value Model), which requires no on site visit but provides a value based on historical price, market conditions, and comparables. The BPO value estimate is not as thorough as a full appraisal but is cheaper than hiring an appraiser to do this work. The BPO value is the key to whether or not your short sale transaction gets approved or rejected.
A lender typically orders the BPO when a short sale is being considered. If a lender has ordered an appraisal, then this is good news as they have deemed your short sale file as a qualified candidate. The value that is provided by the BPO inspection is provided to the lender to compare if the current short sale offer is reasonable. If there is a huge discrepancy with the BPO value and the short sale offer, they would question the validity of the short sale offer and will reject the short sale offer. Bank of America has been known to do this with their short sale transaction. Once a value is grossly underestimated based on the BPO, the file will be closed almost immediately, unless you jump in and negotiate with reason and facts as to why your offer is an accurate representation of the market value. Continue reading