Vito.... I thought it might be helpful for many readers to know just what a BPO Commercial form is:
There has been a trend for real estate agents and brokers in residential properties to earn extra commission income by doing Broker Price Opinions, (“BPO”s). While the income from BPO is not great for each individual property, a Broker can supplement transaction income by having a system where by the use of a routine set of forms and procedures a good BPO is produced and are cost-efficient. It would be wise to have these forms designed so they can be completed on-line.
There are two fundamental types of BPOs, the drive by and the internal BPO. The drive by is used for a more cursory report, while the internal BPO will also examine the interior of the property and other factors as well. The internal BPO is far more complete, but avoids being a full-fledged appraisal, and remains only a Broker’s Opinion about value.
Generally, a BPO is more useful in residential real estate. In commercial real estate, a lender usually wants a more complete report.
It is my general belief that in commercial real estate, one should leave a BPO to the most trusted sources, since there are many factors that verge on the need for a full appraisal in order to get a true valuation of commercial properties. Good luck Vito…. Rob Baird, CA RE License #544165 (One of the oldest, active licenses in CA) 951 515-5855 Email: robertbaird@NewportCpC.com
Mar 1, 2011