Why broker price opinion

Join our network. Personalized Service Your dedicated customer account team works to understand your goals and establish guidelines before starting on the assignment. We keep in touch with you every step of the way — and our team is available seven days a week to help you get the most of your Clear Capital BPO experience.

Market Expertise We work hard to find the perfect broker or agent for your needs, based on a mix of performance ratings and geographic proximity to your subject properties. These brokers represent the absolute cream of the crop in the real estate industry and will work hard to deliver top-notch opinions for you.

We employ three layers of quality checks for each BPO. An automated set of rules validate the data upon submission and looks for errors that brokers can fix immediately. A human then reviews the automated review and calls attention to any red flags for further review. This process is designed to help eliminate revision requests, saving you time and money. Timely Delivery Use the workflow management tool within your customer account on ClearCapital.

Origination When verifying the value conclusion of the origination appraisal. Servicing BPOs are perfect for updating your collateral value.

Many appraisers visit the property within 48 hours, but then require another day or two to process the information and create the full report. Testimonials Homes for Heroes Contact Us. Which Mortgage? Appraisals require detailed square footage measurements. Appraisals use a standard format recognized and used by lenders and mortgage professionals for precise property valuations.

Appraisals are typically pages long with detailed information on each aspect of a property. Bank of America is now offering Principal Reductions! An easy way to think about the difference between a broker opinion of value and an appraisal is that the first is more informal, while the latter is more formal. An appraisal is a formal document completed by a certified appraiser, who must go through a lengthy training and certification process for this role.

In addition, the methods used to value the property in appraisal are more rigorous and must meet standards set forth by an oversight body. In both cases, they will create a stabilized pro forma for the property and use the resulting Net Operating Income NOI as a basis for value.

They will also look at NOI for comparable properties, prices achieved in comparable sales, and market based cap rates. Finally, they may both use one of the major valuation approaches—the income approach , sales comparison approach, or cost approach —to arrive at a final value of the property. Again, a broker price opinion is more of an informal approach to value, so the output can vary widely depending on the broker, brokerage firm, or real estate professional who prepared it.

However, there are several items that investors should look for in the resulting documentation:. For those that choose to solicit a broker price opinion, there are benefits and risks to doing so. The primary benefit of getting a broker price opinion is that it can provide a property owner with a reliable opinion of value. This value can be used to solicit investment capital, and can guide an asking price in a sale transaction. It will not be accepted by a lender and it may or may not be accepted by investors.