During the 2015 Real Estate market there are many Real Estate terms which are used frequently among brokers and lenders.
Two of the most common terms which are used Real Estate circles are BPO and Comp.
In today’s post we will break down what’s the difference between a BPO and Comp so you can be a more knowledgeable home buyer.
What Is A BPO?
A BPO is short for Broker Price Opinion.
Banks will typically hire brokers or Real Estate Agents to determine the estimated value of a home or property.
Lenders typically use a BPO when they believe that the delay or expense of hiring an appraiser is considered to be unnecessary.
Some of the other uses for BPO’s include:
- Pending Foreclosures
- Short Sales
- Asset Evaluation
- Due Diligence By The Financial Institution
What Is Comp?
Comp is one of the most commonly used terms by Real Estate Agents today.
A comp stands for Comparable Analysis, and it’s something that Realtors use to determine the value of a home or property they are selling.
At Fred Sed & Associates we will search for similar homes which have sold recently within a quarter mile radius of the home we are currently selling to determine its value.
Some of the data we look at when determining comps include: Square footage, bedrooms, bathrooms, amenities and location of similar homes nearby which have sold within the last six months.
Similar homes which have sold recently are your key to success when determining the value of a home because the “theory” behind a comp is that buyers who purchased comparable homes recently would be willing to pay the same price for a similar home which is nearby.
Why It Pays To Hire a Real Estate Agent
Although it’s easy in 2015 to find housing sales data online via websites like Zillow, Redfin and Trulia, the reality is that some websites don’t always post accurate data right away so you could find yourself basing the sales price of your home from old data which you’ve found online.
When you hire a Realtor ® you can have confidence that your house will be priced accurately thanks to data which we will use from the Multiple Listing Service and our other resources.
For help with pricing your home for sale contact Fred Sed & Associates today for a free consultation by calling us at (949) 272-0125 or click here.