What is a BPO and Why would one be ordered ?

What is a BPO

A "BPO" is a "Broker Price Opinion". It is similar to what many Real Estate  Licensees call a "CMA" or Competitive market Analysis. A "BPO" in NOT an appraisal. Appraisals can only be preformed by Licensed Appraisers. A "BPO" is an estimate of what the subject property might sell for on the open market.

Why would a BPO be ordered

There are many reasons that a "BPO" my be ordered. Often, we are not informed of the reason. Sometimes, we don't even know what lending institution ordered the "BPO". Banks often go through other parties to contract us. This may be to keep your finances confidential. Since we do not know the exact reason for the order, we just take our pictures.

Some of the reasons a "BPO" is ordered include (but are no limited too):

• Someone has used the subject property as collateral and the institution needs to verify the value of the asset.

• Someone has requested to refinance the subject property.

• Someone has requested to modify the PMI (Principal/Private Mortgage Insurance) on the subject property.

• The institute is revaluing it's asset portfolio.

• The institute is evaluating it's insurance coverage of it's assets.

• Someone is attempting a short sale and the institute needs to verify the value of the subject.

• The institute may be evaluating foreclosure or loan modification with a borrower.

• Any other reason that a bank/lender needs to make a financial decision on a property.

Contact Information

Office

845-469-5590

Direct

845-774-6991

FAX

845-469-5719

Postal address

64 E. Main St., Washingtonville, NY 10992

Electronic mail

General Information: Brandon@BrandonNielsen.com

Webmaster: foremost@fbmconsulting.com

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Last modified: May 14, 2009