If you have been working with a San Diego short sale realtor, you may already know what a BPO is when it comes to your short sale, but if you haven’t consulted with a short sale realtor yet, we are here to tell you about one of the most important topics when it comes to short selling your home.

A BPO is a broker priced opinion, which is essentially similar to an appraisal but isn’t completed by someone that is licensed as an appraiser. A BPO also doesn’t have to coincide with all of the stipulations of an appraisal. As long as someone that is experienced completes the BPO, the appraisal price is typically pretty accurate as long as they spend a significant amount of time looking at the home.

Typically broker priced opinion’s are completed by licensed real estate agents and short sale realtors that the lender has hand picked. They are trained to accurately evaluate your home and assign a value to it for the bank. The bank then takes the value received from the BPO and determines if the offer received on the home is comparable to the market value of the property.

One important thing to note is that the homeowner does not have to pay for the broker priced opinion when doing a short sale. The lender pays for it as part of the final offer on the home. You also do not have to worry about handling the BPO, you just need to ensure the home is available when the BPO is ordered; your short sale realtor should handle the entire process for you.

If you have additional questions about a BPO you should contact a San Diego short sale realtor; they will be able to answer all of your questions and provide you with further clarification.