How to Influence a Broker Price Opinion
When you decide that it's time to jump into the real estate market and put a home up for sale, you will likely eventually encounter a real estate broker. One job of the broker is to estimate the total value of a home. Many factors go into the evaluation process. The price that the broker settles on is known as the broker price opinion, or BPO. While you might think this decision is final, there are several things that you can do to help influence the broker price opinion and shift it toward your favor.
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Instructions
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Clean up. You don't need to prepare a home as you would for an open house, but it should be clean and tidy. Stains on the tile or stacks of clothes in the laundry room could distract the broker from estimating the true value of the home.
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Get repairs done. Any repairs that need to be made, such as fixing a leaking roof or a water-damaged wall, will be recorded by the broker and will affect the BPO.
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Estimate the cost of repairs that you cannot get done yourself. The broker will estimate repairs and factor that cost into the BPO. If you can provide a lower estimate from a reputable repair company, you can successfully influence the BPO.
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Walk through the house with the broker as she assesses the property. Be prepared to answer any questions and point out areas that you have fixed or gotten estimates for fixing. If something raises the value of the home, such as a remodeled kitchen, don't be shy about pointing it out.
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Ask the broker what his estimate is after the walk-through. He may not have an exact figure yet, but he should have an idea. If it is lower than you feel the house deserves, say so. Talk about assets the house has and why you believe the home is worth more. Be straightforward, but respectful of the broker's opinion in order to positively influence the BPO.
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References
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