Broker Price Opinions (BPO) Questions

What does BPO (Broker Price Opinion) mean?

BPO stands for Broker Price Opinion – most often called a BPO by real estate professionals. Today I met Real Property Valuation’s Richard Ekdahl at one of my listings in Torrance on Vermont Ave. He was on scene to perform a BPO.

What a BPO good for?

A BPO is performed to determine the value of a home. It is most commonly performed when a home is in default and the bank would like to know what the current value would be in the event of needing to sell the home. A BPO will also be completed prior to a home being listed for sale when it’s a REO – that stands for Real Estate Owned (bank owned). BPO’s are typically completed at the request of a bank’s loss mitigation or REO department. Local real estate agents most commonly perform the BPO because they are most familiar with the local real estate market.

What does the Brokers Price Opinion report contain?

Well, there are a couple types: exterior BPO’s and exterior & interior BPO’s. All BPO’s require a drive by visual inspection of the property. The inspection of the property will require that you take a photo of the front of the home, a photo that showing the address and one street scene photo.

Interior BPOs require access to the property and several interior photos so the lender can verify the condition of the property interior. A BPO will also require 3 active sales comps and 3 sold comps that most closely match the subject property. These comps must all be within a 1 mile radius of the property. Lenders want to see the most closely matched property within the last 90 days to determine how long it will take to get this home sold and what price they would be able to sell the home in 90 days. The most recent sales are a huge factor to help determine what the home would sell for within a 90 day period.

What good is a Broker Price Opinion?

BPO’s help lenders determine the value of a home. They provide a reliable accurate opinion of a properties value and what it would sell for – instead of an appraisal which tells investors what the value may be. Lenders are not in the business of owning real estate and will work with home owners to help them avoid foreclosure but in the event of a foreclosure the lender will want to know what they can sell the home for within a certain period of time.

The Rocky Rockwood team handles Broker Price Opinions for properties in Los Angeles County. We specialize in the South Bay cities of Manhattan Beach, Hermosa Beach, Torrance, Redondo Beach, Palos Verdes Estates, Rancho Palos Verdes, Rolling Hills, Rolling Hills Estates, Lomita and San Pedro. REO companies looking to establish an experienced REO team who would like to order a Broker Price Opinion, please contact us today. Also, visit our static Website at www.RockyRockwood.com