- MemberFebruary 7, 2021 at 11:03 am
What is the difference between bpo and appraisal?
BPO’s and Appraisals both are property valuation reports used by lending and financial institutions in the USA. The difference between both types of valuation is as follows:
- BPO (Broker Price Opinion) provides an estimated property value wherein appraisals are close to an accurate property value.
- BPO’s are completed by licensed real estate agents or brokers wherein appraisals are completed by licensed appraisers.
- BPO’s are processed by following Broker Price Opinion Standard and Guidelines (BPOSG) wherein appraisals are processed by following Uniform Standards of Professional Appraisal Practice (USPAP).
- In BPO real estate agents obtain property information from tax records or MLS which may or may not be accurate, wherein the appraiser measures all rooms and the property to complete the report with high accuracy.
- Each BPO costs around $30-$100 based on the location of the property and other parameters, wherein each appraisal report costs around $250 to $3000.
- BPO’s are unregulated services, wherein the appraisers follow strict guidelines and can be overseen by federal and state law.
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