Apple Valley MN Short Sales: What is a BPO?
Apple Valley MN – have you been researching Apple Valley MN short sales, then you have probably heard the term “BPO” and wondered what it meant.
BPO stands for Broker’s Price Opinion. A Broker’s Price Opinion is when a licensed real estate agent provides their opinion on the value of a property.
The BPO value is what lenders use to process a short sale. Most short sale approvals or denials are based a real estate agents BPO value.
The agent goes thru all recent sales of properties similar to the subject property they are valuating. An agent’s goal is to find the 3 closest comparable home sales within a 1 to 2 mile radius.
Minnesota realtors are looking for the most recent sales because, the more recent the sale the more accurate that comparable is in determining the subject properties value. The same goes for properties which are close geographically (in the same neighborhood is preferred) and close in size, number of bedrooms and baths.
Most Minnesota agents are not appraisers. Because an appraiser’s license is required to appraiser properties they give their opinion of the value. Now, I’m sure you are wondering,” Why do the lenders use these rather than an appraisal?”
Here is why. Many people think BPO’s are more accurate of a valuation than an appraisal. Agents are more in tune with exactly what a property can sell for. Not what the properties so called value might be. Because we all know, something’s true value is only what someone else is willing to pay.
After all, whatever opinion of value an Apple Valley real estate agent provides for a property is usually supposed to be backed up later by a sale at that price. That causes agents to be more accurate with their valuations.
That accuracy is why the lenders use local Minnesota real estate agents valuations rather than an appraisal. Thinking about a short sale?
I can help you short sale your property and never pay the bank another penny. Send me an e-mail at TimMurphy@MetropolitanHomeTeam.com. I will contact you for a free No Cost, No Obligation Consultation.
When we talk, I will explain how the process works in detail and answer any questions you may have. Or, if you prefer, you can call me at (952) 223-0999
Discover how other sellers successfully completed a short sale and request a free consultation by clicking here.
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Thanks for reading this, Tim Murphy.
Tim is a local Apple Valley Mn real estate agent @ Re/Max Results.
Phone: (952) 223-0999.
P.S. Please feel free to call or e-mail me at anytime for a FREE No Cost, No Obligation Consultation. My goal is to help as many people as I can in 2011.
Get the tools you need for a successful loan modification by clicking here.
Discover how other sellers successfully did a short sale and request a free consultation by clicking here.
Tim Murphy, MN & WI Licensed Realtor
Metropolitan Home Team
RE/MAX RESULTS
Phone: 952.223.0999
Tim Murphy specializes in helping Apple Valley Homeowners short sale and never pays the bank another penny. Apple Valley Loan Modification Help, Apple Valley Short Sales. Apple Valley Short Sale Realtor, Apple Valley Realtors, Apple Valley Realty, Apple Valley Realtor. Lakeville Short Sales, Rosemount Short Sale Realtor. Farmington Short Sales, Eagan Short Sale Realtor.
Copyright 2011 Murphy Inc. All Rights Reserved. This is not intended as legal, technical, or tax advice. Please speak with a licensed professional before making any decision. Information is deemed reliable but not guaranteed as of the date of writing.
The views expressed here are Tim Murphy’s personal views and do not reflect the views of the Metropolitan Home Team or Re/Max Results. This information on Apple Valley Short Sales: What is a BPO is provided as a courtesy to our viewers to help them make informed decisions.