|Posted by LA Real Estate Broker on April 14, 2012 at 6:00 PM|
First, briefly I explain what the BPO means. Broker Price Opinion or BPO is a product that we offer to our clients. A BPO is an assignment that an asset manager or a company requests (i.e. Banks) to evaluate a property weather residential and single family or commercial and apartment or office building. We evaluate the property by specifying the characteristics of the subject property and then selecting comparables that are very similar to the subject property. The comparables are the three recently sold homes, and three active listings for sale on the market. It is essential to note that we use specific BPO form that is provided according to the receiver request and we explain in detail why we think the comparables are the best match for the subject property. The comps we select are within the shortest distance to the subject property and possibly in the same block and very similar characteristics with regards to building’s square footage, lot size, number of bedrooms, and number of bathrooms, the year built, the style, and etc. After comparable homes are selected, we define our reasons for our comparison. We normally take 10 to 15 pictures from the subject property and that depends to the BPO requested weather it is an exterior only or an interior and exterior inspection. Finally, by comparing all these information to the subject home, we will express our opinion of the suggested value for the subject property for that specific time. This is a summery of our BPO service. Our BPO service is available to anybody who will request. However, most of our current clients are asset managers that handle the process for short sale homes, pre-foreclosure homes or foreclosed homes. Because most investors and lenders (Banks) who are going to foreclose on a home due to none payment of the borrower, want to know how much is the value of the home.
Categories: Real Estate Informational Posts