The Broker Price Opinion (BPO) form is a valuable tool used by real estate professionals to estimate the market value of a property. This document provides a detailed analysis of the property’s condition, comparable sales, and current market trends. By utilizing this form, agents can offer informed opinions that assist lenders, buyers, and sellers in making strategic decisions in real estate transactions.
A Broker Price Opinion is a report prepared by a licensed real estate broker or agent that provides an estimated value of a property. It is often used by lenders, banks, or investors to assess the value of real estate, especially in situations involving foreclosures or short sales. The BPO takes into account various factors, including the property's condition, location, and recent sales of comparable properties in the area.
A BPO generally includes several key sections. First, it assesses the general market conditions, such as employment trends and the supply of comparable listings. Second, it evaluates the subject property's marketability, including its range of values and any financing options available. Additionally, the BPO compares the subject property to similar properties that have recently sold, detailing their sale prices and adjustments based on various factors like condition and location. Finally, it may outline necessary repairs to bring the property to marketable condition.
The value in a BPO is determined by analyzing recent sales of comparable properties, known as "comps." The broker will look at properties similar in size, location, and features that have sold recently. Adjustments are made based on differences between the subject property and the comps, such as condition, amenities, and market trends. The final estimated value aims to reflect what the property would likely sell for in the current market.
A BPO is often requested by banks, mortgage lenders, or real estate investors. These parties may need a quick assessment of a property's value for various reasons, such as determining the listing price for a foreclosure or evaluating an investment opportunity. Real estate agents may also request a BPO to help clients understand the market value of their property before listing it for sale.
A BPO is not an appraisal. While both provide property value estimates, a BPO is typically less detailed and used for different purposes, such as determining a listing price or assessing market conditions.
Although BPOs are often used in foreclosure situations, they can be requested for any residential property. Homeowners, lenders, and real estate agents may all utilize a BPO to gauge market value.
Not all BPOs follow the same format or methodology. Different brokers may have varying approaches, which can lead to different valuations for the same property.
A BPO provides an estimate based on current market conditions and comparable sales. It does not guarantee that the property will sell at that price, as many factors influence the actual sale.
While property condition is a factor, a BPO also considers market trends, neighborhood conditions, and comparable sales. It provides a broader view of the property's potential value.
BPOs can be completed by licensed real estate brokers or agents, not just appraisers. They use their market knowledge and expertise to assess property value.
A BPO is generally quicker to complete than a full appraisal. Brokers can often provide a BPO within a few days, depending on the complexity of the property and market conditions.
While lenders frequently use BPOs, homeowners and real estate agents can also benefit. A BPO can help sellers set a competitive price or assist buyers in making informed offers.
BPOs remain relevant in today’s real estate market. They provide timely insights and are often used to make quick decisions in fast-moving markets.
Failing to provide accurate property address information can lead to confusion and miscommunication. Ensure that the address is complete and correct.
Not specifying the current market conditions accurately can misrepresent the property’s value. Take time to assess whether the market is depressed, stable, or improving.
Omitting details about financing availability may limit potential buyers. Clearly indicate if certain types of financing are unavailable and provide explanations if necessary.
Underestimating the necessary repairs can mislead potential buyers. List all repairs needed to bring the property to an average marketable condition.
Inaccurate comparative sales data can distort the property’s value. Ensure that the sales prices and details of comparable properties are up-to-date and relevant.
Neglecting to include comments on property condition can overlook important factors. Provide specific notes on positives and negatives, including any environmental concerns.
Forgetting to sign and date the form can result in delays. Always ensure that the form is signed and dated before submission.
RESIDENTIAL BROKER PRICE OPINION
Loan #
REO #:This BPO is the
PROPERTY ADDRESS:
FIRM NAME:
PHONE NO.
Initial
2nd Opinion
Updated Exterior Only
DATE
SALES REPRESENTATIVE:
BORROWER’S NAME:
COMPLETED BY:
FAX NO.
I.GENERAL MARKET CONDITIONS
Current market condition:
Depressed
Slow
Stable
Improving
Employment conditions:
Declining
Increasing
Market price of this type property has:
Decreased
%
in past
months
Increased
Remained stable
Estimated percentages of owner vs. tenants in neighborhood:
% owner occupant
There is a
Normal supply
oversupply
shortage of comparable listings in the neighborhood
Approximate number of comparable units for sale in neighborhood:
No. of competing listings in neighborhood that are REO or Corporate owned:
No. of boarded or blocked-up homes:
Excellent
% tenant
II.SUBJECT MARKETABILITY
Range of values in the neighborhood is $
to $
The subject is an
over improvement
under improvement
Appropriate improvement for the neighborhood.
Normal marketing time in the area is:
days.
Are all types of financing available for the property?
Yes
No
If no, explain
Has the property been on the market in the last 12 months?
If yes, $
list price (include MLS printout)
To the best of your knowledge, why did it not sell?
Unit Type:
single family detached
condo
co-op
mobile home
single family attached
townhouse
modular
If condo or other association exists: Fee $
monthly
annually Current?
Fee delinquent? $
The fee includes:
Association Contact:
Insurance
Name:
Landscape
Pool
Tennis
Other
Phone No.:
III. COMPETITIVE CLOSED SALES
ITEM
SUBJECT
COMPARABLE NUMBER 1
COMPARABLE NUMBER 2
COMPARABLE NUMBER 3
Address
Proximity to Subject
REO/Corp
Sale Price
$
Price/Gross Living Area
Sq. Ft.
Sq. Ft..
Sq.
Ft.
Sale Date &
Days on Market
VALUE ADJUSTMENTS
DESCRIPTION
+(-) Adjustment
Sales or Financing
Concessions
Location (City/Rural)
Leasehold/Fee Simple
Lot Size
View
Design and Appeal
Quality of Construction
Year Built
Condition
Total
Bdms
Baths
Above Grade
Room Count
Gross Living Area
Basement & Finished
Rooms Below Grade
Functional Utility
Heating/Cooling
Energy Efficient Items
Garage/Carport
Porches, Patio, Deck
Fireplace(s), etc.
Fence, Pool, etc.
Net Adj. (total)
+
-
Adjusted Sales Price of
Comparable
Fannie Mae Revised 03/99
Page 1 of 2
REO#
IV. MARKETING STRATEGY
As-is
Minimal Lender Required Repairs
V. REPAIRS
Occupancy Status: Occupied
Repaired Most Likely Buyer:
Vacant Unknown
Owner occupant Investor
Itemize ALL repairs needed to bring property from its present “as is” condition to average marketable condition for the neighborhood. Check those repairs you recommend that we perform for most successful marketing of the property.
GRAND TOTAL FOR ALL REPAIRS $
VI. COMPETITIVE LISTINGS
COMPARABLE NUMBER. 2
COMPARABLE NUMBER. 3
List Price
Sq.Ft.
Data and/or
Verification Sources
+ (-)Adjustment
+(-)Adjustment
Days on Market and
Date on Market
Leasehold/Fee
Simple
Adjusted Sales Price
of Comparable
VI. THE MARKET VALUE (The value must fall within the indicated value of the Competitive Closed Sales).
Market Value
Suggested List Price
AS IS REPAIRED
30 Quick Sale Value
Last Sale of Subject, Price
Date
COMMENTS (Include specific positives/negatives, special concerns, encroachments, easements, water rights, environmental concerns, flood zones, etc. Attach addendum if additional space is needed.)
Signature:
Date:
Page 2 of 2
CMS Publishing Company 1 800 235-1600 [0399]
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