BPO - Brokers Price Opinion

Brokers Price Opinion | BPO

A Brokers Price Opinion – BPO is generally a price evaluation of a piece or real estate by a licensed real estate agent or broker for a lending company or BPO services company.

Broker Price Opinions –BPO vs Comparative Market Analysis – CMA

BPOs and CMAs – Comparative Market Analysis are pretty much the same thing except for instead of realtor estimating the value of a piece of real estate for a lender or mortgage company they are giving a price opinion to the property owner.

What is a BPO? Or What is a Brokers Price Opinion? And How does a BPO work?

This is how a Broker’s Price Opinion works in general. Let’s say a lending company is going to foreclose on a home owner who is delinquent on payments for several months. The mortgage company or lender will need to know what the home is worth in that given area for that type and size of house.

Remember most home lenders are not local and aren’t familiar with local real estate market conditions. So the lender will normally outsource to a BPO company who then finds a local real estate agent or realtor at $40 to $100 to visit the property. If the bank has not foreclosed on the property and it is still legally in the hands of the home owner, a real estate agent may not be on the property without the owner’s permission or it’s considered trespassing. The agent can observe the property from the road and sometimes they can even see the house, especially in rural areas.

For the exterior BPO, a broker’s price opinion company’s normally will require the agent to take a series of pictures including the front of home, mail box / fire number to verify address, street view and sometimes a sign of the nearest intersection. When the home owner is cooperative the agent maybe allowed to do an interior broker’s price opinion where they get in the home and are allowed on the property without trespassing.

Now that the real estate agent has seen the property and gathered visual data and the BPO company will normally have old appraisals on hand with details of the home like number of rooms, finished square footage, lot size, basement size, type of garage, etc… Now the agent can basically perform a Comparative Market Analysis pulling up similar properties in a close proximity to the subject property for both active and sold properties. Bank like sold properties to be within 3 to 6 month but in rural slower markets a year is more common.

The real estate agent will look through all the comps and pick out 3 of the most similar active properties and 3 of the most similar sold properties to fill out their report. The report basically asks for the main details of the property type of home, size of home, total # of rooms, # of bathrooms, # of bedrooms, stalls in garage, finished or unfinished basement and age of home (hard to determine). The realtor is also asked their opinion of local real estate market condition, repair or upgrades for the home, to upload the photos and give a Sale price in 30 days, 60 days and 90 for both as is condition and repaired condition.

List of BPO Companies | BPO Services | Outsourcing BPOs

Corporate Asset Management llc - http://www.camreo.com
Elmo REO Services Inc. - http://www.elamreo.com
Market to Market.com - http://www.marktomarket.com
First American - http://www.firstam.com
First American Residential Value View - http://www.sourceoneservices.com