What is a BPO?
BPO is an acronym for Broker Price Opinion. BPOs are ordered by mortgage servicers typically through BPO companies, with the goal of determining fair market value for a specific property. Less expensive and faster than an appraisal, a BPO is performed by a licensed real estate broker or agent. A Broker Price Opinion is an estimation of the probable sales price of a residential or commercial property based on the recent sales comparables sold within the area.

Why are BPOs ordered?
The most common reason for a BPO is a delinquent debtor. The mortgage servicer now needs to find the value of the property in order to determine a course of action, i.e. restructure of payments, short sale or foreclosure. Removal of mortgage insurance and mortgage refinancing are two other common reasons for a BPO. It is also often used when assisting with short sales or loan modifications.

What information is required on a BPO order?
Much like a comparative market analysis (CMA), the information typically requested on a BPO order is the specific physical characteristics of the subject property, 3 active listing properties, 3 sold listing properties and digital photos of the subject property.

What is required to perform BPOs?
An active real estate agent or real estate broker already has the items required to perform BPOs - an active real estate license, broker's license or appraiser's license is required along with access to your local Multiple Listing Service, a computer with internet access and a digital camera.

How much experience is required?
BPO’s Inc. prides itself in holding experienced licensees who have a minimum of 2 years experience in real estate and have successfully passed training with our company.

Who uses BPO’s?
A financial institution may order a BPO for the following situations:

• REO property – an accounting designation for a property that a bank has gone through the foreclosure process and has repossessed the property)[2]
• Foreclosure
• Short sale
• As a supplement to an appraisal
• To cross check an appraisal
• HELOC Home equity lines of credit
• Home equity loans
• Requests to remove PMI - Private Mortgage Insurance
• Due diligence for investors or investment bankers
• To determine a selling price for a portfolio of home loans (usually thousands of loans)
• To perform due diligence for a purchase of a portfolio of home loans (usually thousands of loans)
• Any other reason that a bank/lender needs to make a financial decision on a property