What's a BPO?

It's actually very simple, it's a Broker's Price Opinion.

When a bank wants to gather what it understands to be the value of a property, they take two main things into consideration. The first is comparables (or "comps") properties listed and sold that are similar to the property that would be sold in the short sale. This gives the bank an idea of what a, well, comparable property is worth.

But not all houses are alike! That comp down the road has a garage, adding to the value of the property! That other comp was just renovated and they have one more bathroom!

That's where the BPO comes in. A third party agent is hired by the bank to actually visit the property in question assess the value in person. There are exterior or "drive-by" BPOs and there are interior BPOs. We always insist that an interior is done in order for the agent to make note of the condition of the property. During an interior, they can inform themselves (and be informed by your listing agent) of mold issues, repairs that need to be made, and any other criteria which contribute to your property's unique value.

The agent then writes up a BPO report which is submitted back to the bank. This can take time to process, so there is always a delay. If you find yourself asking "the BPO was done three days ago, what do you mean the bank doesn't have it?" just remember that the bank can take up to a week to process it in their system.

So between the time it takes for the bank to schedule it on the front end and process it on the back end, the entire valuation process can take several weeks.