How to Fill Out a Broker Price Opinion
A Broker's Price Opinion (BPO) determines the value of a residential property. BPO forms are filled out before a property is listed for sale, particularly when the listing is for a real-estate-owned property. A BPO is also required when a home is in foreclosure and the bank needs an estimate of the current value of the property. Usually, a real estate agent who has a broker's license performs a BPO, because they are familiar with the local real estate market. A licensed appraiser, real estate agent or broker can complete a broker price opinion. It is illegal for an unlicensed person to engage in any activity for which a license or certificate is required.
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Instructions
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Print out the BPO form and fill out the order information. Fill out the inspection date, BPO firm name, a description of the property, the broker's name and the service being provided.
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Fill out the property description and estimate of repairs needed for the subject property. Property information includes the number of units, property type, age, sales price and other aspects about the property. You will also need to fill out estimates for the exterior and interior repairs that are needed on the property and provide information about the condition of the property, such as title and legal issues.
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Write and check off information about the property's neighborhood. Explain whether the property's value is increasing, stable or declining; if the property has a tenant or an owner occupant; and the number of months for market time. You will also be required to report information about crime, the location of the property and the market price for the homes in the neighborhood.
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Fill out the proportion for real estate comparative market analysis. This includes competitive listings, comparable sales and closed sales within the property's neighborhood.
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Complete the interior information and price option sections. The interior information includes room count and square feet, the interior condition and gained interior access. Write down the price option for recommended repairs and improvements, features and market information.
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Tips & Warnings
It is illegal for any unlicensed person to engage in any activity for which a license or certificate is required. However, state regulations and the penalty for engaging in activities such as performing a BPO without the proper qualifications vary greatly by state, according to Realtor Magazine.
Many states prohibits fee-based BPOs.
References
Resources
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