BPOs are often associated with foreclosures and short sales, but other companies such as relocation firms order BPOs. A BPO stands for "broker price opinion," and it involves using a process very similar to an appraisal.
Companies hire a real estate broker to prepare an opinion of value. The representative of the broker, generally a real estate agent, compares three similar properties that have recently sold to the subject property and adjusts up or down for differences. The final result in an opinion of market value.
Broker price opinions are sometimes controversial, especially if the agent preparing the BPO has little experience or knowledge about the neighborhood. But BPOs typically cost less than a full-blown appraisal.
"Caveat Emptor" (Buyer beware) when looking at REOs or foreclosures to save a buck. While good deals can be had, a thorough home inspection should be MANDATORY. These homes typically are in various states of disrepair. You need to be aware of exactly what your getting.
Highest and best regards,
REALTORÂ® | Century 21 Elite Home Finders
Certified BPO Specialist
5401 S. Kirkman Rd., Ste 725 | Orlando, FL
Direct: 407.256.8190 | Fax: 407.264.8073
BPO's are done for banks that are considering alternatives for properties that are delinquent or may be short sales. If they are short sales, then the homes are already listed and likely active in MLS so your realtor can help you with those property searches. If the homes are just delinquent and not listed for sale, then it is likely that it will be a long time before you ever see them on the market and any BPO's would likely be worth little value. Finally, since the brokers performing BPO's are performing the service for the banks, they are under a duty to just provide that information to the bank so are not likely to be willing to share the information for ethics reasons.
If you are interested in purchasing a home for investment purposes, it is probably best to work with an agent who has some experience and can help make the process most efficient for you....time is money for most investors.
If you would like to discuss investment strategies, please give me a call at 407-421-3002
As an investor there are several things to consider the buy price is only part of it. Your goal is to reduce risk while getting the highest return . I suggest to investors I work with to invest for cash flow and use certain factors to hedge the market. You do not say if you are flipping but considering things like contractors to work with , property mgr's , location , rental base all our part of the things we look at. Then we need to consider loan options or if you are paying cash. If you are in Clearwater why Orlando ? check out my website for further investment information .
There are ways you can find off market properties to invest in. email me with questiona firstname.lastname@example.org
Do your homework as most of these properties are Sold AS IS. Also be patient and willing to walk away if the transaction doesn't suit your goals.
Good luck to you,