Is a BPO the same as an appraisal?

The key difference between a BPO and an appraisal is that an appraisal completes the service and their obligation under the Uniform Standards of Professional Appraisal Practice (USPAP) and law. A BPO is typically completed by a real estate broker or agent and is not required to conform to USPAP or state appraisal law.

Can a BPO be used for financing?

When a BPO makes sense That thinking still applies today, albeit in a much healthier housing market. Sherman points out that Pennsylvania recently approved a law that “says that BPOs cannot be used for any type of mortgage purpose, except for short sales and pre-foreclosure work.”

How do I create a broker price opinion?

For an internal broker price opinion, take photographs of the exterior of the property as well as photos of each individual room. Photograph any damaged areas of the interior of the property. For both types of BPOs, write notes in regards to the visual appearance, including damage and cleanliness, on the forms.

What should a broker follow in preparing a broker price opinion?

Some of the factors that a broker will consider when developing a price opinion include the value of similar surrounding properties and sales trends in the neighborhood. The location of the property and its place among its surroundings factor into the opinion.

What is a brokers opinion of value?

A broker opinion of value, sometimes referred to as a broker’s price opinion, is an assessment of a commercial property’s value by a commercial real estate broker. Often, the opinion of value is used as a way to earn a property owner’s business and it is done free of charge.

What is a broker’s opinion?

A broker price opinion (BPO) is the estimated value of a property as determined by a real estate broker or other qualified individual or firm. A broker price opinion is based on the characteristics of the property being considered.

How long does a BPO take?

The amount of time and amount of substantive work, including detailed findings through appraisals, often takes a week or two to fully complete. On the other hand, both an external and internal BPO might take a much shorter amount of time – in some cases, less than one day to complete.

How can I get BPO?

Steps to start doing BPOs

1. Join as a member of NABPOP – National Association of BPO Professionals.
2. Take the BPO Course.
3. Pass the BPO Certification Test to become BPO Certified ASAP.
4. Sign up with Banks, Lenders, Asset Managers, BPO Companies etc.