What is a BPO

The BPO, or Broker Price Opinion, is a tool used by lenders, mortgage companies and owners to value properties in situations where they believe the expense and delay of an appraisal is not necessary. Real estate brokers are given an order to do a BPO by the owner,  lender, mortgage company or loss mitigation company. The broker does either a Drive By BPO or an Internal BPO in most cases. 

What Does Broker Price Opinion - BPO Mean?
The estimated value of a property as determined by a real estate broker or other qualified individual or firm. A broker price opinion is based on the characteristics of the property being considered.

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 appraisal.