What does BPO mean?

Asked by Ruthless, 60558 Sun Aug 23, 2009

Second loan already approved the short sale, BPO done for the 1st. should not be as long of a wait.

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7
Jennifer Leo…, Agent, Saint Charles, IL
Sun Aug 23, 2009
BEST ANSWER
Borker Price Opinion is what it stands for. The Realtor is having to fill out some paperwork that relates to their opinion of the value of the property. Any other questions http://www.YourFoxValleyHome.com Good Luck
1 vote
Kevin Olson,…, Agent, Colorado Springs, CO
Tue Sep 14, 2010
BPO (Broker Price Opinion) is an opinion of value given by a realtor. Even though it is an opinion, realtors are still liable for the information they give. Close to a CMA, but with a few large differences, a BPO gives an idea to what a home is damaged or repaired, and what it is worth today and up to 6 months out. BPOs do not require adjustments in areas a CMA would, such as beds and baths (several BPOs don't ask for adjustments on these variances).

If the second loan already approved the short sale, remember that it has no bearing on the 1st and the amount of time it takes. If the BPO was of decent quality there normally isn't a holdup, but if it created questions there may be another BPO ordered. It's not always kosher, but try contacting the agent who did the BPO for the 1st and get a ballpark of whether things are looking good or not.

Good luck
Web Reference:  http://www.bpoteaching.com
2 votes
Alex & Carlos…, Agent, San Diego, CA
Tue Oct 26, 2010
BPO (Broker Price Opinion)

Everyone provided great information about BPO's and tips to complete them. My tip on completing BPO's. Make sure you use your MLS and do a radius search. Try to stay as close to the subject property as possible.

Make sure you make correct and accurate adjustments. Take the time to look up assessors information and find out the lot size. Be familiar with the area so you can take views into consideration.

When you visit the property make sure you look at the other homes in the neighborhood, look at the pride of ownership. Look for ugly homes, busy streets, any factor that could hurt your value. BPO's can be a great source of value and a bank will recognize a quality BPO over one completed with minimal information and poor comps.

Also, make sure you send plenty of photos. You have to be the eyes for who is reviewing the BPO. Make sure they see as much about the property as possible.
0 votes
Felix Hung, Agent, Huntington Beach, CA
Fri Sep 17, 2010
Since the question has been answered sufficiently, I'll add that after the completion of the BPOs, it is really the beginning of the approval process. You're maybe done with 20-30% of the process.
0 votes
Jennifer Leo…, Agent, Saint Charles, IL
Sun Aug 23, 2009
HI. Glad you found my website useful. I would say it would behoove your friends to talk with a loan officer to see if they would qualify for a loan and how much of a loan. The potential of having a roommate paying toward the mortgage would have to be addressed by them. I don't know that they would be able to use that to get them qualified. The loan process has changed so much, best to just have a chat over the phone to be prequalified first. There would be no obligation and it would just take a few minutes. Do you have a lender? I have a list of suggested service people on my website too. Certainly makes sense to buy something now!! Homeownership is still the American Dream :)
0 votes
Ruthless, , 60558
Sun Aug 23, 2009
My special thanks to Jennifer for answering. I was searching cheap listings at Realtor.com and one of YOUR listings caught my eye (Bird St). So I have been searching YOUR website.

So let me ask you another question. This house is for a friend. He is for the most part unemployed for the past 2 yrs. He would be buying it with his girlfriend who works full time. With 5% down and NO credit rating, first time home buyers, is there any hope for them?

He's been paying about $300/mo for storage units including his constant late fees. She wants to marry him because he has a college degree and "potential".

What if they were to go with something like 226 Villa and had another roommate sign a lease for $300/mo?
Thanks,
Ruth
0 votes
Tita Garcia, Agent, Jacksonville, FL
Sun Aug 23, 2009
Investopedia explains

"BPO - Broker Price Opinion - is the estimated value of a property as determined by a real estate broker or other qualified individual or firm. A broker price opinion is based on the characteristics of the property being considered.

Some of the factors that a broker will consider when pricing a property include: the value of similar surrounding properties, sales trends in the neighborhood, an estimate of any of the costs associated with getting the property ready for sale and/or the cost of any needed repairs. It is important to note that a BPO is not the same as an appraisal".

Ruthless, a short sale transaction is a long arduous process. As quoted above, BPO is a broker's opinion of a price based on similar properties in the neighborhood and it could be a drive by rather than a more rigorous inspection by a certified appraiser. That's just the start of the process.
Web Reference:  http://www.titagarcia.com
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