POSTED BY offshore|
Valuing property is critical when engaging in buy/sell/refinance operations within the real estate market. Both BPOs and appraisals serve as essential tools. Making intelligent decisions relies upon understanding the difference between the two.
Broker Price Opinion (BPO)
Brokers or real estate agents carry out typical BPOs. To complete successful BPOs, these factors must work harmoniously — realtor expertise, current industry trends, and a comprehensive property evaluation through on-location observation.
While not as comprehensive, property valuations still hold significance for lenders during the loan process. BPOs are less time-consuming and relatively cheap.
Conducted by skilled experts called appraisers, this examination called an appraisal is a thorough evaluation of the property. It involves analyzing the state, nearby area features, and similar past transactions.
For legal purposes and mortgage approval, appraisals are usually necessary. These are more expensive and time-consuming.
Which Should You Use?
The answer to this is based on individual preferences and needs. BPO would be the answer for those needing a rapid approximation with reduced expenses. High-stake property deals mandate an assessment through an experienced professional appraiser rather than relying solely on inspections.