The Broker's price opinion (BPO) is the central point in a short sale evaluation. In most markets, prices are trending downward. The banks and lenders only have one way to determine whether they should sell the home now at a loss or hold it and sell it on their own. This is called the 'BPO', or "Broker's Price Opinion. It's basically a very fancy CMA.
Remember, the BPO is not based in any way on what the seller OWES.
The banks are not in business of owning Real Estate. They are in business for lending money for others to own real estate. With that being said, the banks do not make foolish business decisions. The bank would rather take a small loss now rather than a larger one later. It's simply a business decision.
The manner in which the lenders detemine whether they should accept an offer, reject the offer or counter it is all based on the BPO. With the BPO taking such a critical role in whether the deal will get approved or not, this suggests that the Agents 'price' the house correctly using a few standard formulas. Always try to compare Apples to Apples: three sold comps and three active comps. The bank will do a BPO without feelings, care, thoughts: do not try to humanize the BPO. The bank only cares about the numbers. When you do your BPO think like the bank. This provides you with the opportunity to price the property correctly.