What is a BPO?
BPO is an acronym for Broker Price Opinion. A local agent or broker that will obtain photos of the property and forwards them along to the respective lender who hired that agent for the job. Accompanying those photos are comparables of the recent activity within the area. With this information, your lender establishes a ‘fair market value’. Fact: Lenders utilize the BPO over the full blown appraisal because it is more cost effective. Many lenders won’t require that the subject property be entered by the hired BPO agent; only require that the agent drive-by the property and take photos of the street name and address to validate that they were outside the property. The average price for a full interior BPO is approx $90, paid to the agent upon completion. The average price for a drive by BPO is $60, paid to the agent. The ratio of full interior ordered to exterior is 1:4.
