The Advantages of BPO (Broker Price Opinion)

To those who are not used to real estate lingo, a BPO or Broker Price Opinion is a property evaluation done by a broker. However, this does not merit expense and delay in the appraisal. A BPO is simply a tool that is used to put value on a certain property in the current market.

Lending or mortgage companies request real estate brokers to give out a Broker Price Opinion. This is done through a Drive by BPO or an Internal BPO, which is most likely the case. The reasons for a Broker Price Opinion might include the desire to avoid an appraisal of the cost, to avoid delinquent payment and pending foreclosure and lastly to gain security in a refinance situation.

In the case of a refinance situation in a booming market, companies may prefer to order a BPO in order to lower the cost of the appraisal. This would be an advantage to, for instance, the lending company who ordered for the BPO.

In a situation where the lending company is considering a foreclosure of a certain REO or real estate owned property, or even if they are working with the borrower and helping them in such a situation, they may order a BPO in order to get reliable estimate of the property that is relevant to the current market. This would allow them to compare the property’s estimate price to the mortgage balance. By doing so, the lending company will be more helpful in recommending solutions to the borrower.

If you would like to know more and take advantage of these opportunities, The BPO/REO Kit is the ideal learning package any U.S. Real Estate Agent.