So what’s the difference between a Broker’s Price Opinion and an Appraisal? For starters cost. A B.P.O. is almost always less expensive. It can be provided by a broker or even an appraiser, however it is generally conducted by a licensed real estate agent. An appraisal also contains far more detail.
A B.P.O. is similar to a C.M.A. or “Competitive Market Analysis”, but the agent is paid for an official signed report. Reports can be a simple exterior drive-by or a full interior/exterior report.
Our B.P.O.s start at $75 for a simple exterior report with 6 photos and a paragraph regarding the exterior condition and the condition of surrounding areas, along with a computer generated report of the general market trends for the area. A full report including the interior condition with photos, exterior condition, full comparables and the neighborhood report will run around $295 depending on the size of the property. Island homes, very large homes, homes on large parcels or homes with numerous outbuildings will of course cost more.
In today’s marketplace we generally email the report as a pdf file, however for an additional $5 we can hardmail a copy of the report.
A B.P.O., when possible, will include:
- Three sold comparables as close to similar as possible and as recent as possible, as well as 3 active comparable properties. (this can be impossible on for instance an island, so we use whatever we can find that is even close to similar in type and size and adjust)
- It should include at least 6 pictures: front, back, 2 sides, 2 street views
- Neighborhood market info when available.
- The agents opinion using their local knowledge and expertise.
Some common uses of Broker’s Price Opinion Reports include:
- Opinions for a trust, family or other group of owners.
- Financial Institutions.
- Pending Foreclosures.
- Short Sales.
- Double checking an appraisal.
- Lower dollar home equity loans.
- Mobile home loans.
- Private cash sales.
- Organizations evaluating assets.
- Tax appeals.
- Appeal to cancel PMI or LMI, or data to make a decision as to whether or not to appeal.
- JUST CURIOUS
When I perform a BPO I attempt to provide as narrow a price range as possible. Being in two MLS in my region often allows me to access more comparables than a majority of agents, giving me more data for a more accurate report.
The Hisey Group covers the following Northern Ohio areas:
- Western Cuyahoga County
- Western Medina County
- Lorain County
- Northern Erie County
- Northern Ottawa County
Where legal we are able to add drone or aerial photos for an additional fee.
To order a B.P.O. directly call 440-315-6000 or [email protected]