Broker Price Opinion

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Simple Broker Price Opinion Template
Sample Broker Price Opinion

What is the difference between a broker price opinion and an appraisal?

The main distinction between a BPO and an appraisal is that an appraisal fulfills both the client’s request and the appraisal firm’s legal and USPAP-required obligations. Typically carried out by a real estate broker or agent, a BPO is exempt from USPAP or state appraisal regulations. A BPO can be done by a licensed or certified appraiser, but under USPAP and state law, it then becomes an appraisal. Most appraisers will turn out BPO jobs because of the limited scope and potential legal repercussions. How then is a BPO done, being such a high-level report? The broker or agent will often drive the target neighborhood and do an exterior assessment of the property. They might also have access to the interior, depending on the circumstances. The broker or agent submits their analysis via the BPO form after combining their inspection observations with data, typically from the MLS or public records. This is similar to what an appraiser performs, with the exception that appraisers are accountable to the law. BPOs are frequently used to estimate the worth of foreclosed houses because they don’t necessitate speaking with the property owners. Foreclosed property market value and list prices are frequently estimated using BPOs. An internal inspection may occasionally be part of a BPO, which results in a more thorough report. In these cases, the value will also take into account the condition of internal features such the walls, flooring, countertops, sinks, and air conditioning and heating systems. BPOs are often finished relatively quickly, which may be a benefit if you’re wanting to acquire information on the valuation of a property within a shorter time frame, whether an internal inspection is conducted or there is just a drive-by. Let’s now quickly review assessments. You get a thorough report containing information from the appraiser’s interior and exterior inspection when you request a full assessment on a property. The appraiser also looks for any elements that might affect the subject’s appeal and marketability on the subject site, adjacent sites, subject neighborhood, and overall market region. The appraiser changes the comparable sales and listings once all the data has been evaluated, taking into account the anticipated responses of a typical buyer for the subject property.

BPOs take into account many of the same variables as an assessment and may or may not make modifications. According to the legislation, the appraiser must be an impartial third party with no connection to the property. The appraiser must also be able to back up all the assertions made in the appraisal, and they must maintain a thorough work file as required by law.

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Broker Price Opinion

Summary

BPOs take into account many of the same variables as an assessment and may or may not make modifications. According to the legislation, the appraiser must be an impartial third party with no connection to the property.

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