Price Your Foreclosure with an Interior Broker Price Opinion
Posted on | December 22, 2009 | No Comments
Why choose an interior broker price opinion over a certified appraisal if you’re purchasing a foreclosure? Well, it all depends on the condition of the home that you want to buy.
Many foreclosures are not well kept and if you’re looking at a dilapidated home why spend more money than you have to when an interior broker price opinion can still provide a fair market value to present to the lender?
An interior broker price opinion will cost less than half of what a certified appraisal will cost. But this is only suggested on homes that are prone to a low fair market value. A bpo may cost between $25 and $75 dollars whereas a certified appraisal may cost upwards of $200.
A certified appraiser will base his report on the economic value of the home and cost to replace the home, not to mention the analysis of market trends and comparisons for that community. However, an interior broker price opinion will not provide any real analysis. The interior broker price opinion is developed to provide a fair opinion of what they believe the home will sell for. This may include pulling county information together like tax assessments off of the internet to justify the opinion but the pricing will be based on professional opinion. Some of the things a bpo may “glance” at while developing an interior broker price opinion is;
- How many rooms?
- Is there a basement?
- Condition of interior home such as peeling paint, holes in walls
- Windows intact?
The interior broker price opinion is providing their report based on an “at-a-glance” walkthrough. Not much thought and not much time will be given to this endeavor. Especially with foreclosures; an interior broker price opinion will be quick and non-evasive which can make this a good deal if you’re investing in a short sale or foreclosed home. You’ll want the lowest price available and an interior broker price opinion will probably get you closer to what you’ll look to pay in a foreclosure.
A certified appraiser will carefully do an intensive walkthrough, unless the home is dilapidated, and may even go through the added expense of calling in extra hands such as an inspector to provide a report on the design, operation and maintenance of the home. Some of the items a certified appraiser will research that a bpo will not include;
- How many rooms
- How many bathrooms
- Central air available?
- Is there a basement?
- Garage included? Attached or Detached or simply a carport?
- Condition of roof, electrical systems, foundation
An interior broker price opinion may be the perfect choice to getting a reasonably priced home if you’re looking to get a broad view with very few details included.
Tags: Bpo > Broker Price Opinion > Economic Value > Endeavor > Foreclosed Home > Foreclosure > Foreclosures > Holes > Market Trends > Peeling Paint > Purchasing > Tax Assessments
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