What is Broker Price Opinion (BPO)?
A Broker Price Opinion is an estimate of a property's value prepared by a licensed real estate broker or agent, often ordered by a lender during a short sale or foreclosure instead of a full appraisal. The lender uses the BPO to decide whether the proposed short sale price is reasonable. It is faster and cheaper than an appraisal but less formal.
Example: After receiving the short sale offer, the bank orders a BPO; a local agent inspects the home and reports a value, which the lender compares against the offer before approving.