Bountiful UTAH – If you have been reading about short sales, then you have probably heard the term "BPO" and wondered what it meant.
BPO stands for Broker's Price Opinion. A Broker's Price Opinion is when a licensed real estate agent gives their opinion of the value of a property. Besides
That value is what the lenders use to process the short sale. Most short sale approvals or denials are based off of that opinion of value.
The agent goes thru all the recent sales of properties similar to the property they are valuating. They want to find the 3 closest comparable sales.
Discover how other sellers successfully did a short sale to avoid foreclosure by clicking here.
The more recent a sale is then the closer of a comparable it is considered to be. The same goes for properties that are close geographically (in the same neighborhood is preferred) and close in size and number of bedrooms or baths.
Most agents are not appraisers. Because an appraiser's license is required to appraiser properties they give their opinion of the value. Now, I'm sure you are wondering, " Why do the lenders use these rather than an appraisal?"
Here is why. Many people think they are more accurate of a valuation than an appraisal. Agents are more in tune with exactly what a property can sell for.
After all, whatever opinion of value they put for a property is usually supposed to be backed up later by a sale for that price. That causes agents to be more accurate with their valuations.
That accuracy is why the lenders use their valuations rather than an appraisal. Thinking about a short sale?
I can help you short sale your property and never pay the bank another penny. Send me an e-mail at utahhomesaver@gmail.com. I will contact you for a free consultation.
When we talk, I will explain how the process works in detail and answer any questions you may have. Or, if you prefer, you can call me at (801) 651-0707
Discover how other sellers successfully completed a short sale and request a free consultation by clicking here.
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Thanks for reading this, dave forsberg.
dave is a Real Estate Agent at Prudential Utah Real Estate - Bountiful. Layton Short Sales Realtor:
Phone: (801) 651-0707. utahhomesaver@gmail.com.
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