What is a BPO and how does it differ from an appraisal?
A Broker Price Opinion (BPO) is a valuation performed by a real estate agent or broker, typically ordered by a lender for pre-foreclosure, loan modification, or short sale purposes. It is less comprehensive than a full appraisal and costs less. A BPO reviews comparable sales and may include a drive-by or interior inspection. An appraisal is performed by a licensed appraiser following strict guidelines and is required for mortgage transactions. BPOs are quicker but less detailed.
Why It Matters
Understanding the difference between a BPO and an appraisal helps you know what to expect in different situations like refinancing, short sales, or loan modifications.
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