Broker Price Opinions? - BPO's

[JJohnson1985]

Hi, I am starting my classes this June or Sept (depending on my money situation ) for both appraisal and real estate sales, but I have just heard about BPO's and am wondering what the vet's out there think about them? They are cheaper for mortgage company's ect. than to have a true appraisal, so why would they want an appraiser? I am guessing an appraiser is more reliable, but I guess I'm asking are BPO's used more and more over an appraiser? Besides the cost factor, what situations do company's use a BPO over an appraiser and vice versa? Thank you.

 

[Doug Wegener]

The sad fact is that appraisals are not always more reliable than BPO'S,depends on the appraiser and the broker. There are many threads on BPO'S

 

[JJohnson1985]

The sad fact is that appraisals are not always more reliable than BPO'S,depends on the appraiser and the broker. There are many threads on BPO'S

That is sad. Yes before starting this thread I searched BPO, and got no listings (too general). After I started this thread I searched broker price opinions, and have been reading a couple. I have found info on doing BPO's and I am learning alot (sorry TC :new_smile-l: ). From what I am gathering BPO's are used by sellers to suggest a good listing price, while not truely showing a property's value. Appraising is showing an opinion of value and not neccessarily listing price. BPO's are for the seller's use not for mortgage company's ect. I am still confused on how mortgage company's and brokers get away with doing it, I have even seen links on mortgage company web sites to apply to do BPO's for them.
Still a :new_newbie:

 

[Vegan702]

That is sad. Yes before starting this thread I searched BPO, and got no listings (too general). After I started this thread I searched broker price opinions, and have been reading a couple. I have found info on doing BPO's and I am learning alot (sorry TC :new_smile-l: ). From what I am gathering BPO's are used by sellers to suggest a good listing price, while not truely showing a property's value. Appraising is showing an opinion of value and not neccessarily listing price. BPO's are for the seller's use not for mortgage company's ect. I am still confused on how mortgage company's and brokers get away with doing it, I have even seen links on mortgage company web sites to apply to do BPO's for them.
Still a :new_newbie:

They have their place in the real estate world. My wife does about 5-10 a week lately, mostly for preforeclosure work from different lenders. They don't take too long and they average $50-$100 each.

 

[J in Florida]

I am seeing BPO's off (as in wrong) by hundreds of thousands of dollars. One recent one "valued" a home at around $250k that was actually worth $800k. Seems the broker missed the fact the subject was on the chain of lakes. Only used one comp. Oops! But hey, it only cost $60. There's cost savings for you.

 

[Lobo Fan]

Most BPO's are done for pre-foreclosures. The bank is trying to get an idea about value. If they proceed with the foreclosure they will order a full appraisal (usually). Many Realtors do BPO's as a channel for listings. So often the value will reflect what the lender wants to hear rather than the truth.

 

[JJohnson1985]

Ok, so BPO's aren't used to take the place of an appraisers work, but a cheaper way of getting an idea ( as long as it's not 600k off lol ) but still use an appraiser if the next steps are made. At looking at BPO's I thought they were used in place of an appraiser, but BPO's don't really cut into an appraiser's business then. Thank you for answering my question, and helping me to understand the "place" of BPO's. Like I mentioned I am just begining to get into appraising (haven't even taken my classes yet) and with the way technology and the internet is changing, and finding out about BPO's, I am pretty much trying to see how the demand for appraisers are headed. Thanks again

 

[Offshore]

Sadly there are appraisal products being cheerfully offered for less than the price of a BPOs, some are even available at no charge.

 

[JJohnson1985]

Sadly there are appraisal products being cheerfully offered for less than the price of a BPOs, some are even available at no charge.

Yeah, for instance are you talking about websites that "with a few clicks and information you can see the value of your home in minutes" deals? I read a couple months ago about some website, sorry I can't remember the name now (shame on me:blush: ) that two guys who worked at Microsoft have developed, I read it on cnn.com, that is going to be the one stop shop to find out your homes' value type of deal. The way I see it though is that they need to get their info and numbers from people who know how to value propertry and have seen it all personally to be accurate atleast. The question is how accurate do they want to be? Sell the site as the only place you need to go but then in font #2 type a disclaimer that they can't be held responsible and to not use this info as a base for financial transactions, that stuff makes me sick.

 

[Offshore]

JJohnson I wasn’t referring to the websites which have a fill in your address, instant value feature; I’m referring to real appraisers offering versions for free or at fees lower than BPOs. Those websites you speak of may be fairy accurate in cookie cutter subdivisions with GLAs that only vary slightly. In some neighborhoods the results can be amusing. I receive requests for BPOs regularly since I have both licenses. Most BPO requests I receive are for pre-foreclosures and they tease you with the prospect of a listing. Since I can’t provide the cheap BPO and be fully complaint I refuse them. I know other real estate agents who provide BPOs, but they don’t provide them for every company that requests them. Like lenders and other clients, there are good and bad companies which order REO BPOs. One company recently discussed in here is having a difficult time getting decent listing agents to work with them at all because they’re stiffing agents as well as appraisers. My point is that many appraisers are providing similar products at lower fees or no fees and claim to be complaint. One has to assume if they’re compliant they’re grossing $3 an hour or they’re being profitable and less than compliant.
Back to your original question, eventually Microsoft or Google will run virtually all MLS systems and some values may be just a click away.