What is a BPO, and why does it decide a short sale?

A BPO (Broker Price Opinion) is the lender's estimate of what the house is worth, done by a local real estate agent instead of an appraiser. The lender compares your offer to that number. If your offer is too far below the BPO, the short sale gets countered or declined, so the BPO visit is where most short sales are won or lost.

How it works

• After the lender has your package and offer, it orders a BPO, often an "as-is, quick sale" value.
• A local agent visits the property, takes photos and pulls comparable sales.
• The lender almost never tells you the BPO number. It approves, counters or declines based on it.
• FHA loans often use a full appraisal instead, but the same idea applies.

What to bring when you meet the BPO agent

Always meet the agent at the property. Don't just leave a lockbox code. Bring:

1. The signed sales contract, so they know a real buyer exists at a real price.
2. Comparable sales that support your value.
3. The MLS history, especially if it has been listed several times or sat with price cuts.
4. A written contractor estimate for needed repairs: roof, HVAC, plumbing.
5. Seller concessions on the comps. Call the listing agents on MLS comps and point out any concessions that lowered the real price.
6. "Unqualified" comps, sales the agent might use that don't really compare, and why.
7. Relevant local market news that affects value, such as insurance costs or flood events.

Is this allowed?

Yes. Giving the BPO agent accurate information is normal and legal. What's not allowed is pressuring a valuer to hit a number. Appraisers in particular are barred from letting anyone influence their value, so stick to facts and documents.

Next step: Watch the free case study to see a BPO visit in a real deal. → Watch the free case study →