There are a number of reasons when a professional valuation of property is desired yet a formal appraisal is not required. In these instances, Broker Price Opinions (BPO) are ideal.
A Financial Institution may legally order Broker Price Opinions for:
- REO property
- Short sale
- An addition or a cross check to an appraisal
- Home Equity Loans and Home equity lines of credit of less than $250,000
- Appeals to remove PMI (Private Mortgage Insurance)
- Continued Diligence on a loan
- A selling/purchase price for a portfolio of home loans (usually for thousands of loans)
The BPO of a residential property is conducted by a local, licensed real estate agent. The report combines information from a drive-by exterior examination, external data sources, previous sale data, property assessment data, recent comparable sales and current neighborhood listings, as well as a photograph of the subject property.
Broker price opinions include estimates of repairs to obtain fair market value, neighborhood information, and value estimate (90, 120, 180 day marketing time for “as is” and “as repaired” values). Photographs include subject and street scene photographs. Front photographs of all comparable sales are also available for an additional fee. This product is not an appraisal and does not include an inspection of the interior of the property.
Our BPO Form is 3 pages. It is straightforward and will give a range of values.
NOTE: THIS IS NOT AN APPRAISAL AND CANNOT BE USED FOR MAKING A LENDING DECISION. THIS REPORT IS USED TO DETERMINE A GENERAL PROPERTY VALUE.
Unlimited authority – There are no limitations on real estate brokers and sales persons performing price
and/or valuation analyses, including appraisals in non-federally related transactions.
AK, IL, IN, IA, MI, MT, NY, OK, SD, VT, WI
Broad authority – Real estate brokers and sales people may perform broker’s price opinions,
competitive market analysis, etc. as part of the listing process, and for other purposes. The broker or
sales person may, or may not, be permitted to charge a fee for their services.
AR, AZ, CA, CO, FL, HI, KS, LA, ME, MA, MN, MO, MS, NE, NH, NC, OH, SC, TX, WA, WY, VA
Limited authority – A real estate broker or salesperson may only perform a broker’s price opinion,
competitive market analysis, etc. as part of the real estate listing process. In some cases, brokers and
sales people are prohibited from charging a fee or receiving any form of compensation.
AL, CT, DE, GA, ID, KY, MD, MI, NJ, NV, NM, ND, OR, PA, RI, TN, UT, WV
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