By Bryant Tate

BPO is an acronym for Broker Price Opinion, and is most commonly referred to as a BPO in the real estate.

What is the purpose of a BPO? A BPO is performed to determine an "opinion" of value for a home. It's most commonly used when a home is in default and the bank would like to know what the current value is if the home were sold as an REO asset. A BPO will also be completed prior to a home being listed for sale when it has become an REO. BPO's are typically completed at the request of a loss mitigation or REO department. Local real estate agents are most commonly asked to perform BPOs because of their familiarity with the local real estate market.

What's in a Brokers Price Opinion report? There are two basic types: exterior BPO's and interior BPO's. They both require a drive by visual inspection of the property. The inspection of the property will require that you take a photo of the front of the subject, one of the side, a photo that verifies the address, and one street scene photo. There are also 24 and 48 hr rush orders that can be requested.

If you're doing a interior BPO you'll need access to the property and take several interior photos so the lender can verify the interior condition of the property. The additional data needed for a BPO will be 3 recent sales comps, and 3 current listing comps all of which should closely match your subject property.

These comps should all be within a 1 mile radius of the property and you'll need to upload the photos online to the Lender or BPO requester. You'll want to use sales comps that are within 90 days and closely match the subject property.

The other data that is required is information regarding the current state of the local real estate market. Information such as the number of homes currently listed for sale and the number of homes sold within the last 30 days. How many days properties are listed before being sold and other relevant data to evaluate the the current local market conditions.

If you'd like to learn more about Broker Price Opinions stop by. The demand is still growing for this niche in real estate.

Bryant Tate is a Real Estate agent and has been in real estate for over 17 years.

He is a martial arts and fitness enthusiast.

http://www.bpocashgenerator.com

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