Similar to an appraisal, a Broker Price Option (BPO) is an estimated value of a property as determined by a Orange County real estate broker. A broker price opinion is based on the characteristics of the South Orange County property being considered. Banks often order BPOs instead of appraisals during short sales, foreclosures, or loan refinancing, since BPOs are usually less than half the cost of an appraisal.
Some of the factors that a broker will consider when pricing a property include: the value of similar surrounding properties, sales trends in the neighborhood, an estimate of any of the costs associated with getting the property ready for sale and/or the cost of any needed repairs. It is important to note that a BPO is not the same as an Orange County appraisal.