Real estate agents perform all the required documentation for the bpo then they input the figures into an automated form that asks for 30, 60 and 90 day values. A value is then presented to the bank that is actually about 15 percent lower than the fair market value of the property. Why is this done? So the bank can move the property quicker.

But many real estate agents will confirm that they use newer documented values than they are supposed to use. If the automated form asks for 90 day comparisons many real estate agents will input 30 day values. Banking institutions know how the broker price opinion is formulated. It’s no surprise and they welcome a low-priced home that will sell quickly. In fact, agents who routinely provide low-ball values and off load homes within 30 days will get a load of business from the banking institution.

A certified appraiser will be requested by the financer to ensure their interest is secure. They want to make sure the home is not overpriced. So if the asking price comes in undervalued then it’s surely to entice the buyer and pacify the financer. It looks like a great deal the buyer is getting.

Broker price opinions and the real estate agents making money with them know this is an easy money game. To get the listings and keep the business coming in you support low values and a 30day liquidated price. What does this mean to the buyer? All-in-all it can mean a good deal to jump on if you have a good real estate agent on your side to point out deficiencies in the home. So buyers beware; it’s up to you to determine all the other characteristics of the reo property and whether you need to negotiate on the price.

Incoming search terms:

• MAKE MONEY WITH BROKER PRICE OPINIONS
• buyers price opinion
• what is bpo in real estate
• making money on the side as a real estate agent
• RRR BROKER PRICE OPINIONS CAPTCHA
• real estate broker price opinion companies
• makin money with bpos
• making money from bpo
• making money with bpo
• making money with bpos

The list has overwhelmingly grown for bank owned properties, more commonly known as real estate owned, or REO properties. These foreclosures have multiplied way beyond what the banks were prepared for and now banks are looking to off load the homes while keeping expenses down. So they’ve turned to using an exterior broker price opinion to develop a fair market value to price these homes.

What is an exterior broker price opinion? It’s an opinion conducted by a licensed real estate agent or broker of the home’s value. It’s by no means all-encompassing; for the purpose of selling these reo foreclosed homes it only provides a snap-shot view of what the home *may* be worth. It doesn’t take into consideration the intricacies of interior effects. The licensed realtor or broker performs a drive-by and using their professional experience and knowledge they produce a price for the bank. This price is what they believe the bank should sell the property for and what the bank could reasonably receive in its current condition.

Why would banks want to use this method when it’s not based upon a true well-thought out cost analysis? This is because it’s much cheaper for banks to pay up to $50 per home instead of paying for a certified appraisal which could cost about $200 per home. Banks have already lost money on non-payment of mortgages and the entire foreclosure process so now it comes down to getting these reo properties off of their books.

However, can the home buyer count on the exterior broker price opinion as a fair opinion? Not always.

Take into consideration that the banks want to recoup as much money as possible. An exterior broker price opinion doesn’t really get a full picture of the foreclosed home’s worth. No structural considerations have been introduced when you rely on the exterior broker price opinion. This is why many investors who purchase a reo property submit a new offer and try to renegotiate the selling price.

For new real estate investors looking to purchase a reo property it’s not something to dive into lightly without the benefit of professional knowledge. If you’re relying on exterior broker price opinion for a market value of an reo property you should perform your own investigation to ensure you’re getting the home’s true value.

Incoming search terms:

• exterior broker price opinion