Rentana Knowledge Base

In the real estate industry, deciphering property value plays a crucial role. One tool often employed by real estate professionals is the Broker Price Opinion (BPO). This assessment is a real estate professional’s estimate of a property’s market value. Financial institutions and mortgage lenders commonly use it to set listing prices or evaluate properties for various purposes.

There are two main types of Broker Price Opinions: the internal BPO and the external BPO.

The internal BPO involves an in-depth evaluation that resembles a traditional home inspection. Here, the real estate professionals examine the interior and exterior details of the property.

On the other hand, an external BPO—or drive-by BPO—focuses on evaluating the property based solely on external observation and neighborhood analysis, without entering the home.

Each type of BPO serves distinct needs within the real estate market. Internal BPOs provide a thorough insight into a property’s condition, making them ideal for detailed assessments. In contrast, external BPOs offer a quicker, broader view of the property’s value. They are often used when time or access is limited. Understanding the differences between these methods can empower those in the real estate sector to choose the most suitable approach for their valuation needs.