What is a BPO
BPO is an acronym for Broker’s Price Opinion. In general, the term Broker’s Price Opinion (BPO) is a method that a Real Estate Broker (or an agent acting on behalf of their employing broker) uses to estimate the probable selling price of a Real Estate property/house. The estimate of price is submitted in a BPO report (2-3 pages) that includes local and regional Real Estate market information, neighborhood analysis, and (comps) properties that compare to the (subject) house that is being priced. This method of estimating a price has similarities to a Certified Market Analysis CMA and a residential Real Estate appraisal.
Performing a BPO, in the BPO industry, means that a Real Estate Professional (agent, broker, or appraiser acting in an agent/broker capacity) is requested by a financial institution to submit an estimate of a selling price for a property in a BPO report for a fee.
A financial institution may order a BPO for the following situations:
• home equity lines of credit
• home equity loans
• requests to remove PMI – Private Mortgage Insurance
• REO/Foreclosures, short sales
• due diligence for investors or investment bankers
• Any other reason that a bank/lender needs to make a financial decision on a property