A broker price opinion is a prominent way to estimate a value of a property. Some of the standard reasons for ordering a broker price opinion often involve estimating value before purchase or sale, knowing collateral worth while obtaining a new loan or refinancing, measuring liquidation value, purchasing a partner’s interest in a property, and several others.
In other words, a BPO is a report prepared by a licensed real estate professional and is close to an appraisal. Moreover, it is extremely important to know that the BPO is not an appraisal since appraisal should only be performed by certified appraisers.
If you’re wondering what composes a BPO, here’s a checklist you can use as a reference:
1.Interior or exterior photos, based on the type of BPO. On one hand, interior BPOs mandate the real estate agent to inspect the interior aspect of the property and typically charge more than external BPOs. External BPOs, on the other hand, require pictures of the property to be captured from the street view.
2. Three listed comparable properties and three comparable sold properties. Take note that you may need to identify comps that are close to the subject property and input the details for those comps in the BPO form.
3. Subject property details must also be included in the form and should present the following information: room number, square footage, location, condition and amenities, type of property, and tax ID numbers.
4. You will have to make significant remarks about the BPO as well as the description of the comparable properties, the area, the market, the properties you are valuing, and how you managed to come up with your value.
5. A variety of BPO forms allow the agent to make modifications to comparable properties. If the product has specific characteristics than similar assets, you should change the price of a comparable property just like it was identified by an appraiser. When the subject has AC and the comp does not have that pointed out, you will have to add value to the comp property because of the absence of AC.
6.Some companies also demand the agent to upload MLS or public record information to validate that the data submitted by the agent was accurate.
As a real estate agent, if all of this is too much for you to handle on your own, WePro BPO is willing to take that heavy workload off your shoulders. As a fast-growing broker price opinion outsourcing and management company to residential real estate agents and brokers in the U.S, we are committed to providing you with a top-notch service for your BPO needs!