Freddie Mac 1092: Broker’s Price Opinion (BPO) Form
The real estate purchase and sale transaction can be influenced by various circumstances, from a simple desire to change one’s place of living to an inability to pay the mortgage. In the latter case, the deal is very likely to be closed as a Short Sale, which is favourable to a seller, as it helps reduce the chance of foreclosure. Therefore, a Broker’s Price Opinion (BPO) is essential as it contributes to the propriety of the price for the real estate in question. The Broker’ Price Opinion can be made in two ways: by entering the residential property or by doing a drive-by evaluation without estimating the interior of the real estate property. Therefore, the evaluation can result in either the Drive-By Broker’s Price Opinion or the Interior BPO. There is a special form that should be filled out to record the professional’s opinion of a reasonable price. In this blog post we will take a closer look at the Freddie Mac 1092 form, which helps denote the BPO.
Who needs a Broker’s Price Opinion form (Freddie Mac 1092)?
Any person interested in selling or buying real estate can order the evaluation of property they are interested in. This assessment is carried out by an appraiser using the BPO form. Also, this real estate appraisal can be performed for transactions related to obtaining credit or changing credit conditions.
What is the Broker’s Price Opinion form for?
This form gives an idea of the overall condition of the property and its value. Depending upon the type of evaluation ordered, the form may be used as the Interior or as the Drive-by Broker’s Price Opinion form. If the interior evaluation is made, all types of repairs that must be done are taken into account. Also, the interior BPO form contains reviews of a competing property and several deals closed in the area. This information allows estimation, not only of the property itself, but also of the overall situation in the real estate market in the area. The Drive-by BPO is made based on what the broker manages to evaluate from the exterior of the real property while driving by.
Is the Broker’s Price Opinion form accompanied by other forms?
There is no need to accompany the Drive-by BPO or the Interior BPO form by any other forms when they are submitted immediately after the evaluation. However, the overall transaction to be properly recorded must be documented in the package of the relevant documents.
When is the Broker’s Price Opinion form due?
The expiration term of this evaluation is six months — if the period is longer, one should consider that the assessment may not reflect the actual value or condition of the property
How do I fill out Broker’s Price Opinion form?
This fillable BPO template contains the following points to be filled out:
- Subject property description;
- Estimate of repairs needed for subject property;
- Neighborhood review;
- Value Estimation;
- Competitive listing and closed sales.
Where do I send Broker’s Price Opinion form?
The completed Broker’s Opinion should be directed to the property owner (the seller) and the person who ordered the BPO (if it is not the same individual as the seller).