So the lender orders a BPO to determine the value - usually an exterior BPO unless we push for an interior BPO due to repairs and such. What about an appraisal? Is an appraisal completed once they have approved the short sale offer?
Some lenders will order a BPO and some will use a licensed appraiser. It really depends on who the lender is and who they have making those rules. The difference between them can be night and day.
A BPO, or Brokers Price Opinion, is generally a Broker or Realtor who has been around for a while. Generally they will just pull comps and do a drive, by then call it good. Sometimes they will actually get into the house to take pictures if the bank requests.
An appraiser will come into the property every time possible and take pictures and measurements of each room, and the outside. They put together a full appraisal opinion. Generally appraisers look down on BPO’s because they had much more strict requirements to become an appraiser than a Realtor or Broker go through.