Guess it depends on where your at .For those of us that live in the 19th century it is called a order because most of the time it’s only used by out of state lenders asking a broker or any one other than a appraiser to get a idea of what a property is worth in this area.
The above ansewers are correct, as I said here it is a order prob. because of the lenders calling us to get the value and using a order form that is used to bill for the service. I have did 2 in the last three months for a bank in Denver and was paid $125 each but both were within a mile of my house and there’s not but 4 houses per mile so that was a easy $250.
It means “Broker Price Opinion.” What the property would sell for if offered on the open market.
Here in CA that means a “drive-by appraisal” or “windshield appraisal.” They are not done by appraisers, but by real estate brokers, familiar with the market in the area but, without access to the interior of the building. So it is a look-see appraisal, perhaps backed up with some comparables–recent sales of similar properties in the nearby area.
Lenders will order them from the brokers when the property loan is in default. They may use it to decide what strategy to take with the defaulting borrower. They may use it to determine whether to take a deed in lieu of foreclosure if offered by the property owner.
Brokers who do them tell me that the lenders offen pay about $60 or $75 for them. That is a lot less than an appraiser would charge. They often involve taking pictures and giving written description of the property and, I suppose, the local market conditions.
Good Investing*****************Ron Starr*******************************
This is usually a drive by apprasil of a specific property. With a photo of the exterior. Generally it calls for three comparable sales within the past six months.
The BPO is usually ordered by the lender because the payments are not being made on time. There may be other reasons. The lender wants to verify if the property is occupied, or sitting empty.
It is usually a real estate broker, in the same area where the house that is asked to do the BPO.