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Broker Price Opinion
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A Broker Price Opinion is the term for the recommendation of a price at which to sell a property. Users of BPOs BPOs are can be used by lenders and other banks, in order to re-sell properties in their possession. With a BPO on the property, a lender can manage real estate inventory more easily, and price their properties appropriately. Additionally, BPOs can help protect a homeowner who is trying to attempting to prevent foreclosure. Attaining a BPO can help he or she obtain the information needed to support his situation when dealing with lenders. A homebuyer or investor looking to acquire property in this market can also use the data contained within a BPO to get information from a disinterested third party to make an educated purchase of a property. Offerers of BPOs Licensed real estate agents, brokers, or appraisers can offer BPOs. The real estate or appraiser license must be active and in good standing in the state the BPO is completed in. Contents of a BPO A BPO usually contains: *Several suggested listing prices, depending on how long the seller is willing to market the property. *Price reduction recommendations according to a timeline set by the sellers marketing plan. *The recommended sales price for each of the recommended listing prices, taking into consideration the current market conditions at the time of the report. *Other suggested marketing strategies to sell the property within the sellers marketing guidelines. Criticism of the BPO One often cited criticism of BPOs are that BPO producers lack the training required for a professional evaluation. Currently a simple real estate license is all that is required to provide BPO. A voluntary certification program is also offered by the National Valuation Standards Institute. During this program, Real Estate professionals are trained to have nationally standardized terminology, a clear understanding of BPO forms and associated field definitions, data gathering skills, uniform information and reporting standards. See Also
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