ArtsAutosBooksBusinessEducationEntertainmentFamilyFashionFoodGamesGenderHealthHolidaysHomeHubPagesPersonal FinancePetsPoliticsReligionSportsTechnologyTravel

The BPO: The Link that Ties the Entire Short Sale Together

Updated on January 31, 2013

The BPO Explained

You've certainly heard the term "BPO" if you've been researching short sales. You may be wondering what those 3 little letters stand for, but have been too afriad to ask or didn't want to look stupid. It's o.k. You don't have to worry any more. This fantastic HUB will fully explain the BPO and how it plays a role in the short sale process.

BPO stands for Broker's Price Opinion. It's a process similar to that of an appraisal where a licensed Realtor gives their opinion of value on the property. The assigned Realtor vsits the property, takes photos and then researches comparable sales in the area to determine the market value of the subject property.

There are different types of BPO's. The most common are interior BPO's and drive by BPO's. There is greter detail in the interior BPO, as the agent is required to go inside the property to identify any repairs, or disfunctional charachterisitcs of the property. Then, they list this information on the bank's BPO form, along with 3 comparable properties that are on the market , and 3 comparable properties that have sold within the last 6 - 12 months. FInally, the Realtor gives their recommendation of what the property would sell for in a 30 day "quick" sale.

The Role that The BPO plays in the short sale

There are several important elements of the short sale and how the bank determines what they will accept as a final purchase price.  The BPO does play a very big (if not the biggest) role in determining that amount.  Remember that the banks are nationwide, and they have no idea what condition, location, or situation that the house is in. The only thing that they can rely on is the help of professionals who are familiar with the market and can offer their advice.

What You Can Do To Help

You should always (and I mean always) make it a point to be at the property when the BPO agent is there. Bring the BPO agent some of your own research, showing him/her your own comparable sales and actives to help him determine the value.  ALso be sure to let him know that the hosue is in foreclosure, and that this is a short sale.  You shoud also bring a copy of the purchase and sale agreement, so that he will see what your target purchase price is.  Also, walk around the property with the BPO agent and point out every single little repair that you can find.  If you have an estimate of repairs, be sure to bring them to the BPO appointment, as well.

What Happens Once the BPO is Done

Once the BPO has been completed by the BPO agent, they will email or fax it to the bank/lender who requested it. The BPO will be presented and the offer to purchase the property will be considered. The bank will call the contact person on the file within 3 to 5 days afer the BPO has been received by the bank. The bank will typically accept 70% - 80% of the BPO value. If the offer to purchase the property was not close to that, then the negotiations will begin. 


    0 of 8192 characters used
    Post Comment

    • tribe-consulting profile image

      Tribe consulting 

      3 years ago from USA

      That is awesome point you have shared.

    • Research Analyst profile image

      Research Analyst 

      7 years ago

      Its going to be the only way for real estate agents to get REO listings from what I hear.

    • tracycaywood profile imageAUTHOR


      8 years ago


      While most people seem to think that the BPO is a "hush hush", I have found that if you call the BPO agent and ask them, they'll tell.

    • profile image


      8 years ago

      can you find out how much the bpo came in at from the lender? or can you call the bpo agent directly to get their value of the property?

    • profile image

      bob smith 

      9 years ago

      once again this is very informative and a stepping stone to concuring the fear of the bpo {realtors are only people to} don't let them stand in your way of success I know I wont{newbie} these first 8 hubs where grate the last two will be just so

      thank you

    • Pearldiver profile image

      Rob Welsh 

      9 years ago from Tomorrow - In Words & NZ Time.

      Thank for that Tracy.. Good Hub


    This website uses cookies

    As a user in the EEA, your approval is needed on a few things. To provide a better website experience, uses cookies (and other similar technologies) and may collect, process, and share personal data. Please choose which areas of our service you consent to our doing so.

    For more information on managing or withdrawing consents and how we handle data, visit our Privacy Policy at:

    Show Details
    HubPages Device IDThis is used to identify particular browsers or devices when the access the service, and is used for security reasons.
    LoginThis is necessary to sign in to the HubPages Service.
    Google RecaptchaThis is used to prevent bots and spam. (Privacy Policy)
    AkismetThis is used to detect comment spam. (Privacy Policy)
    HubPages Google AnalyticsThis is used to provide data on traffic to our website, all personally identifyable data is anonymized. (Privacy Policy)
    HubPages Traffic PixelThis is used to collect data on traffic to articles and other pages on our site. Unless you are signed in to a HubPages account, all personally identifiable information is anonymized.
    Amazon Web ServicesThis is a cloud services platform that we used to host our service. (Privacy Policy)
    CloudflareThis is a cloud CDN service that we use to efficiently deliver files required for our service to operate such as javascript, cascading style sheets, images, and videos. (Privacy Policy)
    Google Hosted LibrariesJavascript software libraries such as jQuery are loaded at endpoints on the or domains, for performance and efficiency reasons. (Privacy Policy)
    Google Custom SearchThis is feature allows you to search the site. (Privacy Policy)
    Google MapsSome articles have Google Maps embedded in them. (Privacy Policy)
    Google ChartsThis is used to display charts and graphs on articles and the author center. (Privacy Policy)
    Google AdSense Host APIThis service allows you to sign up for or associate a Google AdSense account with HubPages, so that you can earn money from ads on your articles. No data is shared unless you engage with this feature. (Privacy Policy)
    Google YouTubeSome articles have YouTube videos embedded in them. (Privacy Policy)
    VimeoSome articles have Vimeo videos embedded in them. (Privacy Policy)
    PaypalThis is used for a registered author who enrolls in the HubPages Earnings program and requests to be paid via PayPal. No data is shared with Paypal unless you engage with this feature. (Privacy Policy)
    Facebook LoginYou can use this to streamline signing up for, or signing in to your Hubpages account. No data is shared with Facebook unless you engage with this feature. (Privacy Policy)
    MavenThis supports the Maven widget and search functionality. (Privacy Policy)
    Google AdSenseThis is an ad network. (Privacy Policy)
    Google DoubleClickGoogle provides ad serving technology and runs an ad network. (Privacy Policy)
    Index ExchangeThis is an ad network. (Privacy Policy)
    SovrnThis is an ad network. (Privacy Policy)
    Facebook AdsThis is an ad network. (Privacy Policy)
    Amazon Unified Ad MarketplaceThis is an ad network. (Privacy Policy)
    AppNexusThis is an ad network. (Privacy Policy)
    OpenxThis is an ad network. (Privacy Policy)
    Rubicon ProjectThis is an ad network. (Privacy Policy)
    TripleLiftThis is an ad network. (Privacy Policy)
    Say MediaWe partner with Say Media to deliver ad campaigns on our sites. (Privacy Policy)
    Remarketing PixelsWe may use remarketing pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to advertise the HubPages Service to people that have visited our sites.
    Conversion Tracking PixelsWe may use conversion tracking pixels from advertising networks such as Google AdWords, Bing Ads, and Facebook in order to identify when an advertisement has successfully resulted in the desired action, such as signing up for the HubPages Service or publishing an article on the HubPages Service.
    Author Google AnalyticsThis is used to provide traffic data and reports to the authors of articles on the HubPages Service. (Privacy Policy)
    ComscoreComScore is a media measurement and analytics company providing marketing data and analytics to enterprises, media and advertising agencies, and publishers. Non-consent will result in ComScore only processing obfuscated personal data. (Privacy Policy)
    Amazon Tracking PixelSome articles display amazon products as part of the Amazon Affiliate program, this pixel provides traffic statistics for those products (Privacy Policy)