Why Was a Broker Price Opinion
(BPO) Done on My Home?

A Broker Price Opinion, or BPO, is a report done by a licensed real estate agent to estimate how much a home is worth.  It’s not the same as a full appraisal, but it’s often used to get a quick, expert opinion on the home’s value.  There are many reasons why a BPO might be done on your home.  Some of the most common include:

  • A bank or lender wants to know the value for a loan or refinancing
  • A mortgage company is checking on the home during a late payment or foreclosure process
  • A real estate investor or buyer is thinking about purchasing the property
  • A divorce, estate, or legal situation requires a value estimate
  • A landlord or homeowner is thinking about selling or renting out the home

Whether or not a BPO means there’s a problem really depends on your personal situation.  Sometimes it’s just part of a routine process.  Not sure why a BPO was done on your home?  Contact us and we’ll help you understand what it might mean and what to do next.

What Is a BPO and Why Did the Bank Order One on My Home?

Homes Values and BPO Most of the time, a BPO is ordered by the bank that holds your mortgage.

Banks want to find out the fair market value of the home, and a BPO is a faster and less expensive option than a full appraisal.  

There are many reasons a bank might want to know your home’s value. It could be:

  • Part of a loan review
  • A step before refinancing
  • A check-in during a late payment
  • A look at the value if the home might be sold

Just because a BPO was done doesn’t always mean there’s a problem.  It depends on your specific situation.  Have questions about a BPO on your home?  Contact us and we’ll help you understand what it means and what steps (if any) you should take next.

Why Did the Bank Order a Broker Price Opinion (BPO) on My Home?

You might not know it, but a Broker Price Opinion (BPO) may have been done on your home.  This is especially true if you’re going through a tough time financially or working with your bank.  Here’s how it usually works:

  • The bank contacts a valuation company to get a home value.
  • That company then hires a licensed real estate agent to visit the property.
  • Most of the time, the BPO is an “exterior” or “drive-by” only. The agent takes photos of the outside of the home and the neighborhood.
  • You may never even know this happened because the bank doesn’t have to tell you when they do an exterior BPO.

4 Common Reasons a Bank Orders a BPO

  • Your home is distressed or heading toward foreclosure.  If this might be your situation, it’s a good idea to talk with your bank and a licensed real estate agent.  We may be able to help you sell the home before foreclosure happens.
  • You’ve asked for a “deed-in-lieu” of foreclosure.  In this case, the bank may do an interior BPO and contact you directly.  But selling the home with an agent might still be a better option than handing the home back to the bank.
  • Your home is listed as a short sale.  If you’re going through a short sale, you probably already have a real estate agent helping you.   The BPO helps the bank understand the market value before approving the sale.
  • You’re doing a loan modification, refinance, or trying to cancel PMI.  The bank will want to know how much the home is worth to move forward with your request.  You may also be applying for a home equity line of credit (HELOC).

Worried About Your Home’s Value or Facing Trouble?

We’re here to help you understand your options. If you think your home might be in distress, or you just want to be sure you’re making the best move, reach out to us.

Tell us what days and times work best for you, and we’ll handle the rest.  We believe it’s better to have a face-to-face chat than to sort things out over email or texts.  Let’s talk soon.  We’d love to become your trusted real estate agent and property manager.