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What is a BPO
The BPO, or Broker Price Opinion, is a tool used by lenders and mortgage companies to value properties in situations where they believe the expense and delay of an appraisal is not necessary. Real estate brokers are given an order to do a BPO by the lender, mortgage company or loss mitigation company. The broker does either a Drive By BPO or an Internal BPO in most cases. Learn about doing BPOs here, when they are used, the types and requirements of each.
When is Broker Price Opinion Used?
A BPO, or Broker Price Opinion, is a tool used by mortgage lenders, banks and others to value a property in the current market. The reasons and timing for using a real estate broker for a BPO might include:
The cost of an appraisal is to be avoided.
Delinquent payments and pending foreclosure.
In a refinance situation.
When refinancing for lower rates or other reasons is a booming market, lenders are doing a great many of these loans. In many cases, the home has a recent mortgage where a full appraisal was performed. To lower costs, the lender may decide to hire a real estate broker to do a BPO, or broker price opinion.
In cases where a lender is considering foreclosure, or even if they are working with the borrower to come up with help with their situation, the lender will order a BPO. This allows them to get a reliable estimate of the current value of the property, compare it to the mortgage balance, and recommend solutions.
We offer BPO services potential home buyers and sellers for a reference in a purchase/seller transaction depending on which position the client is in. This gives the purchaser some idea if the property being considered for purchase is priced competitively. From a seller point of view the seller can order a BPO and determine the most reasonable price to place on their property in order for it to be competitive in the market place.
Give a call today or email us for information on this service.
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