Competitive Listings or Closed Sales

The most important part of determining a property’s value is to review what properties are currently for sale and what properties have recently sold. There is no better indication of value than recent data of comparable homes. If the house next door is twice the size of the subject property and is on the market or just sold that information is crucial in determining the value of the subjectRead more

The Power of Photos

Photos are an important part of any BPO. Always keep in mind that the party reviewing / requesting the BPO report is often in a completely different part of the country then where the property is located. You are playing the role of their eyes and ears in the field. When performing an exterior BPO you will not have access to the interior of the property and therefore cannotRead more

Selecting Comparable Properties

Selecting the appropriate comparable properties for your BPO is one of the most important and often most difficult steps of completing the BPO. Without relevant comparable properties you are going to have trouble determining the value of the subject property. Most BPOs will require three sold comparable listings, which should be sold within the last six months (or more recently if possible) and three active comparable listings. In anRead more

Market Conditions

An integral part of understanding the value of a property is understanding the factors that may effect this value. The old adage of Supply vs Demand is no more relevant than in Real Estate. These market conditions ultimately affect how much someone is willing to pay for a property and how quickly it may sell. Most BPOs have a section asking for current market conditions. It is important toRead more

What is a BPO?

BPO is an acronym for Broker Price Opinion. Broker Price Opinions are an easy way for a third party to get an objective opinion of value from a Real Estate Professional. A BPO typically requests multiple values from the individual performing the report, for example an “as is” and a “repaired” value. It is often commonplace to request an estimate of time required to sell a property. BPOs areRead more

BPO vs Appraisal

You may wonder what’s the difference between a Broker Price Opinion (a BPO) and an Appraisal and why wouldn’t people just hire an appraiser to get a valuation of the property. Appraisals are the industry standard when underwriting new loans on purchases and refinances, but in light of the dramatic increase in mortgage defaults, BPOs have become extremely popular. The cost of a BPO can range depending on whetherRead more

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