Broker price opinion FAQs
What is the definition of a broker price opinion?
A broker price opinion is a licensed real estate broker's written opinion of a property's likely sale price, based on recent comparable sales, condition and market conditions. It is not an appraisal.
What does BPO stand for?
BPO stands for broker price opinion. Some people write broker's price opinion or broker opinion of value.
Who orders a BPO?
Banks, credit unions, loan servicers, asset management companies, investors, mortgage insurers, attorneys and estates order BPOs. Home sellers also ask agents for a price opinion before listing.
Why do banks order a BPO?
A BPO tells a bank what a home is worth right now so it can price a bank-owned home, approve or deny a short sale, decide on a loan modification or review collateral.
What is the difference between a BPO and an appraisal?
A BPO comes from a licensed broker, costs less and returns faster. An appraisal comes from a licensed appraiser and is required to originate a mortgage.
What is the difference between a BPO and a CMA?
A CMA is a market analysis an agent prepares for a seller or buyer. A BPO uses the same comparable-sales method but is prepared for a lender or asset manager, on their form, with photos and a condition report.
What is an exterior BPO?
An exterior BPO is a drive-by. The broker photographs the home from the street and prices it from comparable sales without going inside.
What is an interior BPO?
An interior BPO includes a walkthrough of the inside, with photos, condition notes and repair estimates. It costs more and takes about 72 hours.
How much does a BPO cost?
Lenders and asset managers pay brokers about $50 to $150 per BPO. A direct order from a credit union, attorney or estate runs about $150 to $450 depending on the property.
How long does a BPO take?
The industry range is one to four days. Our exterior BPOs return in 24 hours and interior BPOs in 72 hours.
How long is a BPO good for?
Most servicers treat a BPO as current for about 90 days. The value is effective on the report date and changes as the market moves.
How accurate is a BPO?
Clients judge a BPO by how close the opinion lands to the final sale price. Accuracy depends on good comps, clear photos, correct condition notes and local knowledge.
Who can do a BPO in Colorado?
A licensed Colorado real estate broker can prepare a BPO. Asset managers also check E&O insurance, a W-9 and turn-time history before they assign orders.
Can a homeowner order a BPO?
Yes. Homeowners, estates and attorneys can order one directly for a sale, a short sale, probate or a divorce. A broker price opinion is not valid for a mortgage application.
What should I do if my bank orders a BPO on my house?
Let the broker in, point out repairs and upgrades, and share your list of improvements. An accurate condition report protects your value.
Do BPOs affect short sales?
Yes. The servicer compares the BPO value to the buyer's offer before it approves a price below the loan balance. A strong BPO with good comps speeds approval.
Can I order a BPO from the Kenna Real Estate Group?
Yes. Use the order form on our Denver BPO page. Exterior BPOs return in 24 hours, residential and commercial, and every order includes a Smart Pricing Report™ with three values.
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