What is a BPO?

By
Real Estate Broker with Long & Foster REALTORS®, Gainesville, VA VA License # 0225089470

What is a BPO?  As a Short Sale Listing Agent I am asked that at least once in every transaction by my short sale sellers.

So what is a BPO?  What does BPO stand for?

BPO stands for BROKER PRICE OPINION

A BPO is often ordered in lieu of an appraisal by mortgage holders when they are trying to determine the current market value of a short sale property.  A BPO is cheaper than an appraisal because you can hire a Licensed Real Estate Agent to do one for $50-$100.  A licensed appraiser charges $400.

BPO's give three ACTIVE listings and three SOLD listings within the last 60-90 days.  The Real Estate Agent will figure out what the short sale property is worth based on these six listings, which should be as similar as they can find to the subject property.

A BPO is also known as a CMA (Competitive Market Analysis).  Once the mortgage holder has a value of the short sale property, they are able to determine whether or not to approve the short sale contract.

Posted by

Chris Ann Cleland, Associate Broker- Licensed in Virginia, GRI, SFR, Northern Virginia Short Sale Specialist. Affiliated with Long & Foster, 7526 Limestone Drive, Gainesville, VA 20155.  To contact Chris Ann, call 703-402-0037 or email chrisann@LNF.com.  Or you can visit her website:  www.nvarealestate.net.

Header photos taken by Chris Ann Cleland.

The opinions expressed in this post are those of Chris Ann Cleland, not those of Long & Foster REALTORS®.

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Re-Bloggged 3 times:

Re-Blogged By Re-Blogged At
  1. Melissa Zavala 08/24/2009 06:44 PM
  2. Renée Burrows 08/24/2009 06:46 PM
  3. Pat Fenn 08/25/2009 06:39 PM
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Topic:
Home Selling
Location:
Virginia
Groups:
Short Sale REALTORS®
Short Sale Support Group
Tags:
what is a bpo
short sale bpos
short sale realtor
prince william county short sale realtor

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Ambassador
1,804,664
Chris Ann Cleland
Associate Broker, Northern VA
Long & Foster REALTORS®, Gainesville, VA

Richard:  You should elaborate.  What type of issues are you seeing in HI?

Sharon:  I'd say they are more accurate about 85% of the time. 

August 25, 2009 10:40 AM
Rainmaker
313,014
Liz Loadholt
Realtor--Broker-in-charge - Trainer--Relocation Director Covering SC
Liz Loadholt- AgentOwned Realty- Covering SC

Chris Ann --- I agree with the others --- this is such a clean concise explanation of a BPO -- so many people don't have any idea.  Thanks.

Mama Liz's Signature

August 25, 2009 03:27 PM
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1,804,664
Chris Ann Cleland
Associate Broker, Northern VA
Long & Foster REALTORS®, Gainesville, VA

Liz:  We use so many terms and acronyms that it may make our clients' heads spin. 

August 25, 2009 05:50 PM
Rainmaker
117,447
Anne Clark
Metro Referrals

Good explanation of a BPO.  It's funny the way agents throw terms like this around and think nothing of it since we hear them all the time.

November 16, 2010 11:34 PM
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1,804,664
Chris Ann Cleland
Associate Broker, Northern VA
Long & Foster REALTORS®, Gainesville, VA

Anne:  I've used this post over and over to explain it to my Short Sale Sellers.

November 16, 2010 11:54 PM
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Chris Ann Cleland

Associate Broker, Northern VA
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