Is the Broker Price Opinion on Its Way Out?

Posted on 09-26-2017 by Joe Marcotte

The Broker Price Opinion is the process that an agent uses to decide the value or selling price of a home. The process is similar to that of Certified Market Analysis.

For many years now, BPOs have been the main way that note servicers or note holders have been using to decipher the short sale property's market value. The servicer may have ordered a more expensive appraisal for FHA or higher priced homes and properties but usually it has been the BPO.

As of lately, however, it seems change is coming. Over the past year we have been seeing more and more appraisers being used at all price levels of short sales. Appraisers give the most accurate property values as it is their profession, but it's always good to make sure they're aware of any major defects the property may have as well as any factors about the neighborhood that would affect the property's market value.

Sometimes change is not necessarily a good thing, but in this case it seems to be a positive approach. The short sale world is always morphing and it's a good idea to have a good handle on the changes coming and be able to incorporate them into the way you do things. If this change in deciphering the value of short sales becomes permanent, it should make short sales easier as the values should be more accurate and not looked up on as a weak link.

If you're concerned about the brokers price of your Chula Vista home or you are considering selling your home through a short sale, contact our office. We can help you price the home correctly, point you in the right direction and clarify the sometimes confusing issues of a short sale.