Home Buying in Burnsville>Question Details

Bbqgal, Home Buyer in Vancouver, WA

What is BPO? And what do we need to do?

Asked by Bbqgal, Vancouver, WA Sat May 24, 2008

Our agent just informed us that a BPO will be ordered by bank. (We are a in the process of waiting for bank's approval on our bid for a short sale) She says that every short sale will need to do that. I was wondering from your experience, what stage are we in the whole process and what should we expect next?

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7
Jennifer Kirby’s answer
Usually a bank will not order a BPO (broker price opinion) until they are presented with an offer to purchace from a buyer. Also known as a CMA (comparative market analysis), the bank is looking for an analysis that shows the bank the current market value of the property, with recent sold data included. From the BPO, the bank will look at your offer, then consult the investors that back the loan of the sellers, and then the decision will be made whether or not to accept your offer. You never know how many people have to be consulted, so the process could take a couple of weeks to months. A BPO could be done in as little as a day. The bank could come back asking for a higher price, or they could accept your offer out right. Really, the only thing you can do now is sit and wait for their decision. Good luck and I hope you get the home!
3 votes Thank Flag Link Sat May 24, 2008
A BPO is a Broker Price Opinion and provides the bank with an estimated selling price "as is, as repaired". In addition the bank will order an appraisal for the actual market value "as is, as repaired" and for the marketability, condition, and market area conditions/trends to determine how much of a loss they will incure on a short sale, or if it would be more advantageous to foreclose and sell at auction or as a REO (bank owned property) before deciding to accept a short sale offer.
1 vote Thank Flag Link Sat May 24, 2008
BBqgal,

A BPO, is a valuation performed at the beginning of the process right after the seller has accepted an offer and submitted it to the bank. The bank is the one that orders this valuation and it means you're about 20% of the way to completion.
0 votes Thank Flag Link Fri Sep 17, 2010
A bpo can be ordered in any stage of the process, usually a licensed agent or broker will drive by or call to complete an interior broker price opinion.
0 votes Thank Flag Link Sun Apr 11, 2010
Just sit and wait. Usually its a drive by - could be an interior - in this case they will giving you a call.
Web Reference: http://bpo4agent.com/
0 votes Thank Flag Link Fri Mar 13, 2009
Thanks a lot for your answers. Now it's in the process of waiting for upper manager's approval. One more step to go I guess.
0 votes Thank Flag Link Mon Jun 2, 2008
It is a broker price opinion. They usually need one in their file as protocol before they can sign a deal.
Web Reference: http://GetPrequalified.com
0 votes Thank Flag Link Sat May 24, 2008
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