BPO is broker price opinion. When you do a short sale, your lender sends out someone to give a BPO as to the value that they use to determine whether the offer reflects current market value. Its not a formal appraisal and the lenders have a network of brokers they pay about $50 to $75 for each of them rather than about $400 for a full appraisal.
It was but I’m not seeing much of that anymore particularly in my business which is mostly distressed sales. Prices agreed to in the beginning of the year now look low compared to what homes can sell for in some of the hot markets. Its not market wide nor in every price range as I’m sure appraisal problems abound at higher prices.
