What is a BPO Broker price opinion?

A Broker Price Opinion report is an opinion of value that is conducted by real estate professionals and/or appraisers to help determine the estimated current market value of a specific property. A typical BPO form is 2-3 pages, is either an exterior or interior inspection and is seen within the valuation industry as an option to a full appraisal report.

Some banks, lending institutions and asset management companies offer options to their customers and clients. Some of the reasons these companies will ask that a Broker Price Opinion be done on a property are: when doing refinance loans, home equity loans and lines of credit, the removal of private mortgage insurance and portfolio acquisitions of performing loans. This option gives everyone choices so they don't have to pay for a full appraisal and instead pay a lesser amount to have a real estate broker, agent or appraiser; complete a Broker Price Opinion.

Also, some BPO's are used to help banks, government-backed mortgage providers and lending institutions determine the "Current Market Value," for a property that they are financing and the mortgagor is defaulting on their monthly mortgage payment that they are contractually bound by. They can use broker price opinions to help with determining if a property should go into pre-foreclosure or foreclosure. Perhaps, they want to check out other less expensive alternatives that are available instead of foreclosing on a property, such as: deed in lieu of foreclosure, bankruptcy, loss mitigation, a forbearance plan, a short sale situation, charging it off, or using a junior lien protection plan.

Authored by: Nicole Ocean of nicolesdreams eBooks

Nicole Ocean is a Realtor/BPO Specialist and Trainer

Check out her website at: www.nicoleocean.com

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