Broker Price Opinion (BPO)
A Broker Price Opinion is the process a hired sales agent utilizes to determine the selling price of a real estate property. BPOs are popularly used in situations where lenders and mortgage companies believe the expense and delay of an appraisal to determine the value of properties is unnecessary. A financial institution will order a BPO from a Real Estate Broker in which the broker will do a drive by BPO or an Interior BPO, which is more common.
A Financial institution may order a BPO for:
- REO property (Real Estate Owned property)
- Foreclosures
- Short sale
- An addition or a cross check to an appraisal
- Home Equity Loans and Home equity lines of credit
- Appeals to get rid of PMI (Private Mortgage Insurance)
- Diligence for Financial Institutions
- A selling/purchase price for a portfolio of home loans (usually for thousands of loans)
Pulse Realty & Investments - Internal BPO Process:
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