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Residential Bpo Form: What You Should Know

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Video instructions and help with filling out and completing Residential Bpo

Instructions and Help about Residential Bpo

Hey, what's up? It's Jay Lucky Henry. Today, we're gonna talk about BPO in terms of real estate. Get ready, this is Jay Lucky Henry, Keller Williams agent in the Greater Boston area. You won't believe how many people need to get real estate explained in 90 seconds. Welcome back. Today, Jay Lucky Henry is talking about BPO in real estate terms. So, BPO stands for brokers price opinion. Does that mean the broker just gives an opinion on what they think the price should be? No, what happens is a BPO is typically ordered by a bank, and there are typically two times when they order these things. They order them during short sales and foreclosures. So, the broker price opinion is basically a broker or a representative, a real estate agent like myself, going out and comparing a property to three or more other properties that have sold to try to determine the value for that property. Now, this is not to be confused with fair market value. The bank may use the BPO as a way of determining the value, or they may just use it as additional information as required during these processes. So, the bank can use it or they may not. They may order BPOs from different agencies to find what they feel is their market value for the property. It's really a way for them to determine if they're not taking too big of a loss during the short sale or foreclosure. Two things about BPOs: it can be the more in-depth BPO, which is sometimes referred to as an interior BPO, where you actually go into the property, take pictures, and compare the subject property to pictures of properties that have sold. The other type is the exterior or desktop BPO, which...