What are the types of BPO carried out by a real-estate broker?
BPO also called as broker price opinion is a powerful tool that is used both by the lenders and the mortgage companies to estimate the value of the property in the current real-estate market. This kind of report is basically prepared while selling and buying a property. This report will give the property value that you can expect from selling your property without getting deceived. The key reason to hire a real-estate broker to do BPO is to avoid appraisals, pending foreclosures, and illegal payments.
However, if you are planning to write a BPO Letter to bank or lender, then you can hire a broker, who will help you in writing the BPO letter in a professional way for a small fee. If you want to write the letter by yourself, you can find many BPO letter to bank in online. You can take them as a reference and write the letter. The broker prepares the BPO for a property by thoroughly analyzing the marketing condition of your location and repairs of the property. This type of letter is ordered by the lender to cut down the expenses and time consumption for a full appraisal. The broker carry out the following BPO
Internal BPO: This BPO has more clear information compared to drive by BPO. In this type of BPO, the broker instead of just giving an approximate estimation of the number of rooms, they personally go and measure the rooms and calculate the square feet. Also, this BPO includes the age of the property, size of basement and parking lot. The broker will thoroughly inspect all the rooms and document the repairs and damages in the home.
Drive by BPO: This type of BPO is prepared by the lender without actually visiting the property. Generally, the broker will take a few pictures of the property and submit them to the lender along with this BPO letter. This drive by BPO includes the broker information and the information of neighbors. In this letter, the broker has to document the property size, number of rooms, the size of the parking area and zoning information.
Next post: Broker Price Opinion
Previous post: Affidavit by Grantor That He Or She Has Title and Possession