broker price opinion is a report made by a licensed real estate agent, broker or appraiser. This is similar to doing CMA (Comparative Market Analysis) but most of the time real estate professionals get paid to do BPO. ODS may be a Drive-By or Interior report. When conducting BPOs, pro real estate examines 'subject properties', they take pictures, they also reach the environment and attract 6 comparable properties (3 Active Comps and 3 Composites Sold) in their MLS (Multiple Listing Service). They then take all of this information, the pictures they take from the subject and their knowledge of the local real estate market and they put it into a BPO form. The final BPO is used to support their professional opinion which will help determine the potential selling price or approximate value of real estate property.
Video Broker's price opinion
Parties involved
Opinion brokerage prices initiated by financial institutions. Examples are banks, mortgage companies, and loss mitigation companies.
BPO is performed by a real estate professional acting on behalf of a financial institution. Such a professional may become a real estate agent, real estate broker, appraiser, or other qualified person. Through ODS, real estate professionals can improve their skills in property inspection, market knowledge, evaluation, and property prices. At a price of US $ 30- $ 100 per BPO, employment can provide side income or regular income to a real estate agent. Agencies can also create working relationships and relationships with financial institutions. Some BPO agencies work through BPO companies that provide a single point of contact to clients and oversee their agents and reports.
Maps Broker's price opinion
Use of ODS
Financial institutions may order BPOs to:
- situations that do not support the cost or time of the full real estate assessment
- property owned real estate (REO)
- pending foreclosure or foreclosure
- short sale
- adding or cross-checking into ratings
- a home equity loan and a home equity line of credit of less than $ 250,000
- refinancing
- is interesting to cancel the mortgage insurance lender (LMI or PMI)
- due diligence by financial institutions
- evaluation of assets and bookkeeping by financial institutions
- the selling or buying price for an individual property or a home loan portfolio (sometimes for thousands of loans)
BPO process overview
A real estate agent or broker is hired to complete a BPO report on a property. An ODS may occasionally be requested at no cost in the hope that a financial institution, bank or lender will receive a sales list for the property.
BPO professionals then conduct an investigation. Many factors affect the price of a property:
- characteristics of individual properties, such as structure type, size, space usage, age, lot size, and parking
- how the property matches the immediate environment
- according to local zoning requirements
- environmental characteristics
- similar property values ​​in the surrounding area
- the amount of cleaning, repair, and preparation needed to create valuable properties
The result is a brief report, usually two or three pages in length. The report includes property and environmental analysis, photos, comparable properties ("comps"), and local and regional market information.
Types of BPO
A broker can do drive-by BPO or BPO interior. In drive-by BPOs, professionals do not have access to the interior of the property; they rely on exterior look, environmental information, comparison, and other documentation. The interior of BPO is more profound; it requires the agency to make contact with the borrower or point of contact (POC) to schedule an inspection, and when it arrives the agent sees the property and records all necessary repairs to bring the property to fair market value conditions (updates and improvements are not permitted, unless the agent can indicate that the local market is requesting an update or upgrade, ie granite countertops and hardwood flooring). The front, rear, and both sides of the exterior are taken, as well as photos of every interior room, as well as all the equipment and mechanics. When completing the report, the value is selected for 30 days of quick sales, and the value is 60-90 days, and the suggested selling price for each is calculated based on market conditions and sales list ratios for that market. Improved fair market value is subtracted by a detailed repair cost to find the value of what it is.
Comparison with other value analysis types
- Auto-rating model
In the automated assessment model (AVM), the computerized mathematical model evaluates the basic features of the property, compares with the sale of the area, and determines the coarse value. Calculations take into account information about the size of the property, the bedroom, and the bathroom. AVM is a basic evaluation - "just to ensure that property values ​​are in the right football park" - and can be replaced with a full real estate assessment. Because AVM does not involve site visits, it does not include factors such as conditions or upgrades.
- Comparative Market Analysis
A person who wants to sell or buy a home may ask the agent to conduct a comparative market analysis (CMA) to determine the fair listing price or the offer price. The process of deciding the price of a CMA is similar to a BPO. However, BPO - whether the exterior drive-by BPO or BPO interior is full - is more thorough than most CMA.
- Real estate appraisal
Unlike BPO professionals, real estate appraisers must have licenses or certifications in most countries. ODS is less thorough than assessment.
Only licensed or certified Appraisers may conduct appraisal or assessment.
See also
- BPO Standard and Guidelines
- Your BPO Coach - Nicole Ocean
- Free BPO, REO and Asset Management Directory
References
Source of the article : Wikipedia
0 Comments