Excerpt: Little Book of BPO Companies

What are BPOs?
BPOs, or rather, "Broker Price Opinions," are professional valuations of properties. BPOs are less expensive and less time consuming than full appraisals and are completed to estimate the value of real estate. A BPO is generally two to three pages in length and includes specific information and characteristics about a subject property and other properties that impact the assumed value.

Why Do Companies Request BPOs?
Companies request BPOs primarily because they are less expensive than an appraisal. A BPO is the most economical way a financial institution can make a calculated financial decision on their real estate holdings. The foreclosure crisis has lead to banks needing BPO agents now more than ever before!

Hi Marie,

Don't feel embarrassed to ask your real estate professional questions. :-) BPO (Broker's Price Opinion) is similar to an appraisal but it done by a real estate professional.

Hi Marie,
A BPO or Broker Price Opinion is an analysis of the current market value of a home. BPO's are generally ordered by a bank or "asset manager" when a property is going into "Short Sale" or into foreclosure. The BPO and, sometimes two of them, are ordered to establish the fair market value for the property. They are cheaper in cost for the bank ($50 to $100) as opposed to an appraisal which can cost upwards of $250 to $350.
Peter

B= Brokers
P= Price
O= Opinion

A fancy phrase for the more common
C= comparitive
M= Market
A= Analysis

In both, a real estae licensee does a market comparison to determine a selling price on the property.

Typically banks require a full appraisal in order to approve a short sale, but each bank has their own guidelines.