This post is written in response to many questions I have received from Brevard County, Florida real estate agents on BPOs (what are they, how are they done, any secrets, etc). If you are a seller involved in a short sale then this information is appropriate for you as well.
First of all...a BPO is a Broker Price Opinion. It is an opinion of a property's market value. It is not an appraisal as appraisals are conducted by licensed appraisers. These are usually requested by lenders who are facing a decision in how to handle a mortgage issue (restructure loan, accept short sale, foreclose on the property, etc).
So, is there a secret to a BPO? The short answer is no.
I conduct BPOs in pretty much the same manner as I conduct a comparative market analysis for potential seller clients. I consider three active listings that are very similar to the subject property. Ideally these are located in the same subdivision or, at a minimum, within a mile of the subject. I also look at three recent sales within the same parameters.
Because there are so many short sales in the market at this time several of these comparatives may very well be short sales of even REO/ Bank Owned properties. Upon selecting these comparative properties adjustments are made for any differences such as a private pool, upgrades, repairs needed, etc.
My opinion of value is then supported by these nearby "comps." No secret or specialized formula used at all. By the way, when I conduct a BPO on a specific proeprty I am not allowed to discuss the opinion submitted.
If you are considering selling your Viera, Suntree or Rockledge home, please give me a call. I would welcome a chance to discuss my marketing plan and how I may assist you in the process. Likewise, if you are considering a purchase in the Viera, Suntree or Rockledge, I would be honored if you gave me a chance to assist you as well.
Gary Waters, Florida licensed real estate agent, Century 21 Baytree Realty, Rockeldge, Florida. Call me directly at 321-693-3850 or email me at firstname.lastname@example.org.