Purpose of the BPO:
A Broker Price Opinion is used primarily by banks and other lending institutions because of the quick turnaround time and low cost. These institutions have large portfolios of assets, so using a broker’s opinion to determine the values of their mortgage notes is vital to understanding current market trends. BPO reports are typically performed every 3 months, and each report follows the notes for a period of time.
The BPO serves many purposes:
- Its Used to remove a mortgage’s PMI
- Owner refinance
- Alternative types of collateral loans
- Dispute property taxes
- Determine what your home would sell for in today’s market
Its’s more than just a real estate agent’s CMA (Comparative market Analysis)
Should I get a BPO, or do I need a full appraisal?
As a homeowner, it is important to get a professional’s opinion on what your home is worth, so why not use the standards of lending institutions? Appraisals are expensive and range from $500 – $1200 depending on the size of the property, whereas a BPO ranges from $100 – $250 depending on the size of the property. Many real estate agents offer CMAs for free in hopes of getting you to list with them – AND there is nothing wrong with that approach! However, so as not to feel obligated to them, you should compensate them for their time and effort for a professional BPO report that will detail the qualities, features, and pros and cons of your home when compared to the comparables recently sold and currently active on the market? The BPO offers a professional opinion by a real estate broker at a significantly more affordable cost than an appraisal and is more much reliable than 3rd party sites like Zillow, Redfin, Trulia and others. Since the cost is small when compared to the sale price of your property, we strongly recommend getting multiple BPO reports from multiple brokers.