Option for Home Appraisal – Many firms are putting out a great deal of money in conducting researches to know the neurologic basis from which customers decide in buying a property or paying a service.
Option for Home Appraisal – In this noble pursuit, many of these firms failed to recognize and utilize available information that are handed free of charge by many customers who are more than willing to share their personal feedback.
Broker price opinion or BPO references a strategy utilized by mortgage lenders to acquire property value. Broker price opinion reports are mostly used by bank loss moderators to obtain estimated property values of homes in pre – foreclosure or short sale. Moreover, they are also used instead of traditional property appraisals when borrowers request a loan modification. Appraisals for homes Home values obtained through broker price opinion are based on predetermined factors.
These predetermined factors include property location, property condition, square footage, lot size and assessment of other homes in the area. Home prices are based on comparative analysis of the neighborhood as well as property condition. Property value declines when bank owned and foreclosure properties are in the area. There are two types of Broker Price Opinion available to mortgage lenders. These two are drive-by and internal. Both types provide estimated property value along with estimated repair costs. Because of this fact, almost all lenders depend on broker price opinion reports to determine if real estate qualifies for the intended transaction. The two types might have been designed for the said purpose and yet, there are still differences between the two. Drive-by broker price opinions are conducted by licensed real estate brokers who drive by the property to gather information. That is – brokers provide an estimate of the home’s square footage, number of rooms and lot size. Reports of brokers also document the homes exterior condition, approximate age and the available parking. More than that, it also includes information about the neighborhood. . Lenders want to know the number of foreclosure properties, homes for sale, and average cost of homes sold, along with homeowner's association regulations, if one exists. On the other hand, internal broker price opinions require entering the home to obtain property information. Because the assessment is done intricately, internal appraisals provide a more detailed report of property condition. This type allows a broker to conduct a thorough investigation to determine the exact condition of ceilings, floors, walls, appliances, fireplace, plumbing, electrical and working capacity of HVAC units. In addition to that, brokers must also inspect roofing, siding, gutters, fencing and swimming pools. The reports that are collected and documented by the internal broker price opinion are often used with mortgage refinance and loan modifications. Apart from any other usage of BPOs, lenders also make use of its reports when they enter into short sale agreements. With this transaction, lenders usually agree to accept less than the full amount owed on the home mortgage loan. Banks establish a listing price based on the aforementioned factors. Borrowers then list their property through a licensed realtor. Short sale homes are generally priced below market value to attract buyers. Home appraisals summary Lastly, broker price opinions are used when borrowers apply for home equity line of credit. See, broker price opinion is really useful in many ways. More than just a collection of documents, these opinions play an important role in making the real estate market run. Without the existence of which, the market would never be the same.