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The Broker Price Opinion (BPO) form serves as a critical tool for real estate professionals, particularly in assessing the value of residential properties. This comprehensive document not only outlines the property address and relevant identification numbers, such as loan and REO numbers, but also captures essential details about the market conditions surrounding the property. It provides a snapshot of current employment trends and the overall health of the real estate market, indicating whether conditions are depressed, stable, or improving. The form asks evaluators to estimate the percentage of owner-occupied versus rental properties in the neighborhood, offering insights into community dynamics. Additionally, it delves into the subject property's marketability by assessing its condition, type, and any necessary repairs, while also considering the availability of various financing options. Furthermore, the BPO includes a comparative analysis of closed sales, enabling the appraiser to gauge the subject property against similar listings in the area. This comparison not only highlights competitive pricing but also allows for adjustments based on unique property features and conditions. By synthesizing all these elements, the Broker Price Opinion form becomes an indispensable resource for making informed decisions in the real estate market.
Common mistakes
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Incomplete Information: Failing to fill out all required fields can lead to confusion. Ensure that every section, including the property address and loan number, is complete.
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Incorrect Market Conditions: Misrepresenting the current market conditions can skew the entire evaluation. Take the time to accurately assess whether the market is depressed, stable, or improving.
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Ignoring Comparable Sales: Not providing accurate data for comparable properties can undermine the opinion. Always include relevant sales data, including sale prices and dates, to support your assessment.
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Neglecting Repairs: Overlooking necessary repairs can mislead potential buyers. Clearly itemize all repairs needed to bring the property to marketable condition.
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Inaccurate Value Adjustments: Failing to make proper adjustments for unique features can distort the value. Carefully consider aspects like location, condition, and amenities when calculating adjustments.
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Forgetting to Include Comments: Omitting comments about the property can leave out critical information. Always note any special concerns or unique features that could impact marketability.
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Key takeaways
Accurate completion of the Broker Price Opinion (BPO) form is essential for determining the property's market value. Make sure to provide precise information on the property address, loan number, and REO number.
Understanding the general market conditions is crucial. Assess factors such as employment trends and the supply of comparable listings in the neighborhood to gauge the market's health.
Clearly identify the subject property's marketability. Consider its condition and improvements compared to local standards. This will help in estimating the appropriate marketing strategy.
When analyzing competitive closed sales, gather data on similar properties. Include details like sale price, gross living area, and any adjustments needed for differences in features.
Documenting repairs is vital. List all necessary repairs to bring the property to an average marketable condition. This information can influence potential buyers’ perceptions and offers.
Review competitive listings to understand pricing strategies in the area. Compare the subject property with similar listings to determine a competitive price point.
Finally, ensure the comments section is thorough. Include any specific positives or negatives about the property, such as environmental concerns or special features, to provide a complete picture.
Broker Price Opinion Example
RESIDENTIAL BROKER PRICE OPINION
Loan #
REO #:This BPO is the
PROPERTY ADDRESS:
FIRM NAME:
PHONE NO.
Initial
2nd Opinion
Updated Exterior Only |
DATE |
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SALES REPRESENTATIVE: |
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BORROWER’S NAME: |
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COMPLETED BY: |
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FAX NO. |
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I.GENERAL MARKET CONDITIONS
Current market condition: |
Depressed |
Slow |
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Stable |
Improving |
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Employment conditions: |
Declining |
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Increasing |
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Market price of this type property has: |
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in past |
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in past |
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Remained stable |
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Estimated percentages of owner vs. tenants in neighborhood: |
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% owner occupant |
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There is a |
Normal supply |
oversupply |
shortage of comparable listings in the neighborhood |
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Approximate number of comparable units for sale in neighborhood: |
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No. of competing listings in neighborhood that are REO or Corporate owned:
No. of boarded or
Excellent
% tenant
II.SUBJECT MARKETABILITY
Range of values in the neighborhood is $ |
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to $ |
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The subject is an |
over improvement |
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under improvement |
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Appropriate improvement for the neighborhood. |
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Normal marketing time in the area is: |
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days. |
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Are all types of financing available for the property? |
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No |
If no, explain |
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Has the property been on the market in the last 12 months? |
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No |
If yes, $ |
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list price (include MLS printout) |
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To the best of your knowledge, why did it not sell? |
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Unit Type: |
single family detached |
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condo |
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mobile home |
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single family attached |
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townhouse |
modular |
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If condo or other association exists: Fee $
monthly
annually Current?
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Fee delinquent? $ |
The fee includes:
Association Contact:
Insurance
Name:
Landscape
Pool
Tennis |
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Phone No.: |
III. COMPETITIVE CLOSED SALES
ITEM |
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SUBJECT |
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COMPARABLE NUMBER 1 |
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COMPARABLE NUMBER 2 |
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COMPARABLE NUMBER 3 |
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Address |
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Proximity to Subject |
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REO/Corp |
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REO/Corp |
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REO/Corp |
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Sale Price |
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Price/Gross Living Area |
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Ft. |
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Sale Date & |
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Days on Market |
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VALUE ADJUSTMENTS |
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DESCRIPTION |
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DESCRIPTION |
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DESCRIPTION |
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DESCRIPTION |
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Sales or Financing |
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Concessions |
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Location (City/Rural) |
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Leasehold/Fee Simple |
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Lot Size |
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View |
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Design and Appeal |
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Quality of Construction |
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Year Built |
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Condition |
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Total |
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Bdms |
Baths |
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Total |
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Baths |
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Total |
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Bdms |
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Baths |
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Total |
Bdms |
Baths |
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Above Grade |
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Room Count |
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Gross Living Area |
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Sq. Ft. |
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Sq. Ft. |
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Sq. Ft. |
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Sq. Ft. |
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Basement & Finished |
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Rooms Below Grade |
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Functional Utility |
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Heating/Cooling |
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Energy Efficient Items |
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Garage/Carport |
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Porches, Patio, Deck |
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Fireplace(s), etc. |
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Fence, Pool, etc. |
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Other |
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Net Adj. (total) |
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Adjusted Sales Price of |
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Comparable |
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Fannie Mae Revised 03/99 |
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Page 1 of 2 |
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REO# |
Loan # |
IV. MARKETING STRATEGY
Minimal Lender Required Repairs |
V. REPAIRS
Occupancy Status: Occupied
Repaired Most Likely Buyer:
Vacant 
Unknown
Owner occupant 
Investor
Itemize ALL repairs needed to bring property from its present “as is” condition to average marketable condition for the neighborhood. Check those repairs you recommend that we perform for most successful marketing of the property.
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GRAND TOTAL FOR ALL REPAIRS $ |
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VI. COMPETITIVE LISTINGS |
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ITEM |
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SUBJECT |
COMPARABLE NUMBER 1 |
COMPARABLE NUMBER. 2 |
COMPARABLE NUMBER. 3 |
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Address |
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Proximity to Subject |
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REO/Corp |
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REO/Corp |
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REO/Corp |
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List Price |
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Price/Gross Living Area |
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Sq.Ft. |
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Data and/or |
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Verification Sources |
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VALUE ADJUSTMENTS |
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DESCRIPTION |
DESCRIPTION |
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DESCRIPTION |
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DESCRIPTION |
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Sales or Financing |
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Concessions |
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Days on Market and |
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Date on Market |
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Location (City/Rural) |
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Leasehold/Fee |
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Simple |
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Lot Size |
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View |
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Design and Appeal |
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Quality of Construction |
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Year Built |
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Condition |
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Above Grade |
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Bdms |
Baths |
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Bdms |
Baths |
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Total |
Bdms |
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Baths |
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Bdms |
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Baths |
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Room Count |
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Gross Living Area |
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Sq. Ft. |
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Sq. Ft. |
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Sq. Ft. |
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Sq. Ft. |
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Basement & Finished |
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Rooms Below Grade |
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Functional Utility |
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Heating/Cooling |
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Energy Efficient Items |
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Garage/Carport |
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Porches, Patio, Deck |
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Fireplace(s), etc. |
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Fence, Pool, etc. |
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Other |
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Net Adj. (total) |
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Adjusted Sales Price |
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$ |
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of Comparable |
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VI. THE MARKET VALUE (The value must fall within the indicated value of the Competitive Closed Sales).
Market Value |
Suggested List Price |
AS IS REPAIRED
30 Quick Sale Value
Last Sale of Subject, Price |
Date |
COMMENTS (Include specific positives/negatives, special concerns, encroachments, easements, water rights, environmental concerns, flood zones, etc. Attach addendum if additional space is needed.)
Signature: |
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Date: |
Fannie Mae Revised 03/99 |
Page 2 of 2 |
CMS Publishing Company 1 800 |
Understanding Broker Price Opinion
What is a Broker Price Opinion (BPO)?
A Broker Price Opinion (BPO) is a professional assessment provided by a licensed real estate broker or agent to estimate the market value of a property. This opinion is often used by lenders, investors, and real estate professionals to determine the potential selling price of a property, particularly in situations involving foreclosures or short sales.
When is a BPO typically used?
BPOs are commonly utilized in various scenarios, including:
- Determining the value of a property for a potential sale.
- Assessing property value for loan underwriting.
- Evaluating properties for short sales or foreclosures.
- Providing insights for investors looking to purchase properties.
What information is required to complete a BPO form?
To complete a BPO form accurately, the following information is typically needed:
- Property address and loan details.
- Current market conditions, including employment and pricing trends.
- Details about comparable properties, including sale prices and characteristics.
- Occupancy status and any necessary repairs.
How does the BPO process work?
The BPO process generally involves the following steps:
- The broker inspects the subject property and comparable properties.
- Market conditions are analyzed to determine trends and pricing.
- Data is compiled and adjustments are made based on property features.
- A final value estimate is provided in the BPO report.
What factors influence the value in a BPO?
Several factors can impact the estimated value in a BPO, including:
- Location and neighborhood conditions.
- Property size and layout.
- Recent sales of comparable properties.
- Market demand and economic conditions.
- Condition of the property and any necessary repairs.
Can a BPO replace an appraisal?
No, a BPO cannot replace a formal appraisal. While both provide value estimates, an appraisal is a more comprehensive evaluation performed by a licensed appraiser and is often required by lenders for financing. A BPO is typically less formal and quicker to obtain.
How long does it take to complete a BPO?
The time required to complete a BPO can vary, but it typically takes a few days to a week. Factors that can influence the timeline include the availability of comparable sales data and the broker's schedule for property inspections.
What should I do if I have questions about my BPO?
If you have questions regarding your BPO, it is important to reach out to the broker or agent who completed the opinion. They can provide clarification on the findings, methodology, and any recommendations made in the report.
How to Use Broker Price Opinion
Completing the Broker Price Opinion (BPO) form requires careful attention to detail and an understanding of the property and its market. Each section of the form gathers important data that will help in assessing the property's value. Follow the steps below to accurately fill out the form.
- Begin with the top section. Fill in the Loan #, REO #, and PROPERTY ADDRESS. Include your FIRM NAME and PHONE NO.. Indicate if this is an Initial, 2nd Opinion, or Updated report.
- Next, provide the DATE, SALES REPRESENTATIVE, BORROWER’S NAME, and COMPLETED BY details. Include your FAX NO..
- In the first section, GENERAL MARKET CONDITIONS, assess the current market condition. Choose from Depressed, Slow, Stable, or Improving.
- Evaluate the Employment conditions as Declining, Stable, or Increasing.
- Indicate how the market price of similar properties has changed in the past months: Decreased, Increased, or Remained stable.
- Estimate the percentage of owner occupants in the neighborhood and note the supply of comparable listings as Normal, Oversupply, or Shortage.
- Provide the number of comparable units for sale and the number of REO or Corporate owned listings.
- In the SUBJECT MARKETABILITY section, indicate the range of values in the neighborhood and assess if the subject property is an over improvement, under improvement, or has appropriate improvement.
- Estimate the normal marketing time in days and note if all types of financing are available for the property.
- If the property was on the market in the last 12 months, provide the list price and reasons it may not have sold.
- Specify the Unit Type and any association fees, along with the details of the association.
- In the COMPETITIVE CLOSED SALES section, list the comparable properties. Provide their addresses, proximity to the subject, sale prices, and other relevant metrics.
- Make value adjustments for each comparable property based on various factors such as location, condition, and amenities.
- Complete the MARKETING STRATEGY section by indicating whether the property will be sold As-is or with Minimal Lender Required Repairs.
- Document the occupancy status and identify the most likely buyer.
- Itemize all necessary repairs and check those recommended for successful marketing.
- Fill in the COMPETITIVE LISTINGS section with comparable listings, including list prices and relevant adjustments.
- Determine the MARKET VALUE based on the competitive closed sales and provide a suggested list price.
- Finally, include any comments regarding the property, such as positives, negatives, or special concerns. Sign and date the form.