OfflineI've noticed that banks are using a BPO's for an estimated home value. What is this? Why is it different then Zillow or Realquest? Can you use you own appraiser for an actual number to submit to a bank or is that a waste of time? Why do banks do it this way? Is it to save them money on getting actual appraisals which cost money and using their own broker saves them money in long run? Curious Beth at it again!! I start to ask one question and it turns into 15! Im so sorry! I cant keep up with myself here!!!
Beth-A-Roni Your San Francisco Treat
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Broker Price Opinions are used to verify what the property is actually worth... fmv minus rehab that is necessary, what the other comps in the area are, minus materials. It is there way to prove that the offer you are making in this type of market is accurate. Usually, BPOs are used when doing a short sale.
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The reason why lenders prefer BPO's is: You were on the right track, when you said, that it saves them money, because it does!, see the banks use BPO's instead of Appraisers is; Appraisers charge between $200-$350 per Appraisal, while they can get a regular old real estate agent to give their "OPINION" for around $50 bucks, BIG difference when talking about 50-100 properties or more. ALL a BPO REALLY is, is a educated "OPINION" for what they think a properties worth, using the comparable sales method.
YOUR HERO, SULLY