Why Was a Broker Price Opinion (BPO)
Performed on My Home?
There are many reasons why a Broker Price Opinion (BPO) could have been done on your home. Whether or not this is an indication of a future problem depends upon your individual circumstances.
A BPO is almost always ordered by the bank that holds the mortgage on the property. It is done so that they can learn the fair market value of the property. Banks order a BPO because they are less expensive than appraisals. The bank usually contacts a valuation service company. That company then passes the request on to a licensed real estate agent.
The majority of Broker Price Opinions are “drive by” or “exterior” valuations. During this type of BPO, the agent takes pictures of the home’s exterior and the neighborhood. You may actually never know that an exterior BPO was done. This is because the bank who orders the BPO has no obligation to notify the homeowner. There are four main reasons a BPO is ordered by the bank.
- The first reason for a BPO is that your home is distressed and heading towards foreclosure. In this case, you may want to speak with your bank and a licensed real estate agent. An agent can help you sell the home.
- The second reason for a BPO is that you have contacted your lender to do a “deed-in-lieu” agreement to stop a foreclosure action. In this case, you would likely be notified because the lender would do an interior BPO. You may wish to speak with a licensed real estate agent about selling. That could be more beneficial than a “deed-in-Lieu” foreclosure.
- The third reason for a BPO is that your home is being sold through a “short sale.” If this is the case, you have likely already listed the home with a licensed real estate agent.
- The fourth reason for a BPO is that you are doing a loan modification, a re-finance, or a home equity line-of-credit with their lender. You may also be trying to eliminate your Private Mortgage Insurance (PMI). This can be done if the equity in the home reaches a certain level.
The lender will want to know the value of the home before completing any of these. If you believe that your home is distressed, you should Contact us today! We will be happy to discuss your situation with you and help you determine the best course of action. You can also Request a FREE market analysis of your home.
You can easily set up a Zoom Meeting with us to get even more information. We can provide you with information that is specific to your circumstances. The meeting would last no more than 30 minutes. It would help if you provide a couple of times that you would prefer. We think this may be a better way to start the process than using just email, texts and phone calls. We hope you’ll give it a try! We would like to become your preferred real estate agent and property manager and look forward to speaking with you.