NV Law may be a little different (OP is from VA) This is a simple breakdown. In Nevada, we determine list price (mostly for distressed property), not value.
Here is the basic definition defined by NV Law:
Notwithstanding any preprinted verbiage to the contrary, this opinion is not an appraisal of the market value of the property. It is intended only for the benefit of the requesting party in deciding the listing, offering, sale, exchange, option, lease or acquisition price of the real property and not for any other purpose, including, but not limited to obtaining financing. If an appraisal is desired, the services of a licensed or certified appraiser must be obtained.
What is a BPO? As a Short Sale Listing Agent I am asked that at least once in every transaction by my short sale
sellers.
So what is a BPO? What does BPO stand for?
BPO stands for BROKER PRICE OPINION
A BPO is often ordered in lieu of an appraisal by mortgage holders when they are trying to determine the current market value of a short sale property. A BPO is cheaper than an appraisal because you can hire a Licensed Real Estate Agent to do one for $50-$100. A licensed appraiser charges $400.
BPO's give three ACTIVE listings and three SOLD listings within the last 60-90 days. The Real Estate Agent will figure out what the short sale property is worth based on these six listings, which should be as similar as they can find to the subject property.
A BPO is also known as a CMA (Competitive Market Analysis). Once the mortgage holder has a value of the short sale property, they are able to determine whether or not to approve the short sale contract.
