What Exactly is a BPO?
A broker’s price opinion is the process used by a hired sales agent to determine the potential selling price or estimated value of a real estate property. A BPO is popularly used in situations where a financial institution believes the expense and delay of an appraisal is unnecessary.23
A BPO (Broker’s Price Opinion) is a real estate agents opinion of value. A real estate broker will review comparable properties, recent sales, pending sales, and tax assessments to provide good estimate at a reasonable price.A Broker Price Opinion is conducted by a real estate professional with some expertise in your area. The BPO includes information about 3 recent home sales of properties that are similar to yours and 3 current listings of homes that are similar to yours. The agent will then give their opinion as to the current market value based on a 30 day quick sale and a regular market based on the average days on the market. While an appraisal can cost as much as $500.00 on average, broker price opinions can cost a fraction of that.
Who Else Might Need a BPO?
A BPO does not have to be used for bank owned properties. Often a seller thinking seriously about selling somewhere in the near future or perhaps considering selling to a family member will ask for a BPO to leverage in negotiations. There are many other reasons to utilize a BPO. Call Peggy with Foyt Realty for a Broker’s Price Opinion when your need arises!