Hi there
I got question
What the difference between a bpo and an appraisal too me they seem like the same thing
joe
Howdy Killmerfl:
They are similar. The BPO is done by a licensed agent hopefully with some experience and knowledge about sales in the area. In a subdivision where all the houses are alike this is hard to beat and hard to get it wrong. If you have 1000 identical houses then odds are that your will be worth what the other 1000 sold for within 6 months or so.
Appraisals are done by again licensed professionals but with more education about value. Their education is especially important in commercial deals. They use the same data that the broker may use and make calculated adjustments as to size, condition, location and numerous other details. The more unusual the property and neighborhood the more complicated the work becomes. If there is a shortage of sales in MLS then they really have to dig up non MLS sales by tracking sales thru deeds at the courthouse and calling buyers and sellers to get the data.
The BPO can get the value on most deals as good as the appraiser except the lenders usually will not accept a BPO when making a loan. They are great for seeing if you have found a bargain to buy or pricing a property for sale.
thanks ted
now that make a little more
sence to me
one deal with market vaule (bpo)
an the other deal in what the property
is really worth makes good sence
thank joe