Broker Price Opinion Template

Instructions on How to Fill Out Broker Price Opinion

Filling out the Broker Price Opinion (BPO) form requires careful attention to detail. Each section must be completed accurately to ensure a comprehensive assessment of the property's market value. Follow these steps to complete the form effectively.

1. Enter the Loan # and REO # at the top of the form.
2. Provide the PROPERTY ADDRESS, FIRM NAME, PHONE NO., and the name of the SALES REPRESENTATIVE.
3. Indicate whether this is an Initial, 2nd Opinion, or Updated BPO.
4. Fill in the DATE and the BORROWER’S NAME.
5. Complete the COMPLETED BY section, including FAX NO..
6. In the GENERAL MARKET CONDITIONS section, select the current market condition: Depressed, Slow, Stable, or Improving.
7. Assess the Employment conditions: Declining, Stable, or Increasing.
8. Indicate the market price trend for the property type: Decreased, Increased, or Remained stable.
9. Estimate the percentage of owner occupants in the neighborhood.
10. Assess the supply of comparable listings: Normal, Oversupply, or Shortage.
11. Provide the approximate number of comparable units for sale in the neighborhood.
12. List the number of competing listings that are REO or Corporate owned.
13. Indicate the number of boarded or blocked-up homes.
14. In the SUBJECT MARKETABILITY section, enter the range of values in the neighborhood.
15. Determine if the subject property is an over improvement, under improvement, or appropriate improvement.
16. Estimate the normal marketing time in days.
17. Confirm if all types of financing are available for the property.
18. If the property was on the market in the last 12 months, provide the list price and explain why it did not sell.
19. Specify the Unit Type and provide details about any condo or association fees.
20. Complete the COMPETITIVE CLOSED SALES section with details of comparable properties.
21. Fill out the MARKETING STRATEGY and REPAIRS sections, including occupancy status and necessary repairs.
22. Complete the COMPETITIVE LISTINGS section with details of current listings.
23. Finally, assess the MARKET VALUE and provide any comments regarding the property.
24. Sign and date the form.

When filling out and using the Broker Price Opinion (BPO) form, there are several important aspects to keep in mind. Understanding these can enhance the effectiveness of your analysis and ensure accurate property evaluations.

• Market Conditions Matter: Accurately assess the current market conditions, including employment trends and the supply of comparable properties. A clear understanding of whether the market is improving or declining can significantly impact your valuation.
• Subject Property Analysis: Evaluate the subject property’s marketability by considering its condition and the type of financing available. Determine whether the property is over or under improved compared to neighborhood standards, as this will influence its appeal to potential buyers.
• Comparable Sales Are Key: Use comparable sales effectively to justify your pricing recommendations. Analyze the sale prices and characteristics of similar properties to make informed adjustments that reflect the subject property's unique features.
• Repairs and Marketing Strategy: Identify necessary repairs to bring the property to a marketable condition. A well-defined marketing strategy that outlines whether the property will be sold as-is or with repairs can help attract the right buyers and facilitate a quicker sale.

When preparing a Broker Price Opinion (BPO), several other documents can enhance the process and provide additional insights. Each of these forms plays a crucial role in ensuring that the valuation is accurate and comprehensive. Below is a list of commonly used documents alongside the BPO form.

• Comparative Market Analysis (CMA): This document assesses the value of a property by comparing it to similar properties that have recently sold in the area. It provides a broader market context.
• Property Condition Report: This report details the physical state of the property, noting any repairs needed. It helps inform potential buyers about the condition of the home.
• Listing Agreement: This contract outlines the terms between the seller and the broker regarding the sale of the property. It includes commission rates and duration of the listing.
• Sales Contract: This legal document outlines the terms of the sale between the buyer and seller. It includes price, closing date, and contingencies.
• Title Report: This report provides information about the property’s ownership history and any liens or encumbrances. It ensures that the title is clear for the new owner.
• Appraisal Report: Conducted by a licensed appraiser, this report provides an independent valuation of the property. It is often required by lenders for financing purposes.
• Inspection Report: This document details the findings of a professional home inspection. It highlights any major issues that could affect the property’s value.
• Neighborhood Profile: This report gives insights into the local community, including demographics, schools, and amenities. It helps buyers understand the area better.
• Market Trends Report: This document outlines current real estate trends in the area, including pricing trends, average days on market, and inventory levels.

Using these documents in conjunction with the Broker Price Opinion form can provide a well-rounded view of the property’s value and marketability. Each form contributes valuable information, helping both sellers and buyers make informed decisions.

When filling out the Broker Price Opinion (BPO) form, there are several key practices to keep in mind. Here’s a list of what you should and shouldn’t do:

• Do provide accurate and complete information for each section of the form.
• Do check the current market conditions thoroughly before making any assessments.
• Do include detailed descriptions of the property and its condition.
• Do ensure that all comparable sales data is up-to-date and relevant.
• Do clearly state any repairs needed to bring the property to marketable condition.
• Don't leave any sections blank; incomplete forms can lead to misunderstandings.
• Don't exaggerate the property's value or condition; honesty is crucial.
• Don't overlook the importance of accurate contact information for all parties involved.
• Don't forget to sign and date the form before submission.

By following these guidelines, you can help ensure that the Broker Price Opinion form is filled out correctly and effectively.