A broker price opinion, or BPO, is a real estate professional’s written opinion of a property’s estimated market value. BPOs are most often referred to when setting the list price of a property, similar to a comparative market analysis. A Broker Price Opinion is also sometimes used in the case of a foreclosure or short sale. | QUICK ORDER
While browsing real estate listings, prospective home buyers and sellers want to know the prices attached to those properties. Buyers want an idea of how much money they will need to buy each home, and sellers need to know how much they will receive when they sell a property. But who sets those numbers? If the home seller is working with a real estate agent or broker to handle their transaction, the list price of the home is likely influenced by some kind of broker price opinion.
To determine the BPO, a real estate agent or broker will use expertise and experience to assign a dollar amount to a property based on recently sold prices of comparable nearby properties. BPOs are normally performed by a broker who is familiar with the local housing market. Brokers may also take into account an estimate of any improvements or the costs of any necessary repairs.
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For some official functions, such as for mortgage financing, an appraisal by a licensed home appraiser is required. A BPO will not suffice for home purchase transaction financing lender decisions. For most other uses, such as basic, unofficial research or verification of home value to a home owner with property value knowledge, such as helping to decide the listing amount, the BPO fits the bill, and at a much lower price than an appraisal. A BPO may provide a quick, easy second opinion for a home seller to consider before accepting an offer from a buyer.
Often taking less than 24 hours, a Broker Price Opinion is cheaper, faster and easier to schedule than a licensed appraisal, and can sometimes include additional information that may not be provided with an appraisal, such as: pros and cons, building report, county assessor record, investment opinion sold properties report and area lenders report. The BPO may be requested for any kind of property, including single family home, condo, multi-family, commercial property or land.
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Copyright © This free information provided courtesy L.A. Loft Blog with information provided by Corey Chambers, Broker, DRE 01889449. We are not associated with the seller, homeowner’s association or developer. For more information, contact 213-880-9910 or visit LALoftBlog.com Licensed in California. All information provided is deemed reliable but is not guaranteed and should be independently verified. Properties subject to prior sale or rental. This is not a solicitation if buyer or seller is already under contract with another broker.