If you’ve been asking your friends and acquaintances, “How can I sell my house fast in Charlotte, NC?” you might have heard about getting a broker price opinion to set a fair and accurate asking price. In this post, we provide all the information you need to know about the broker price opinion, and we’ll also say whether we think it’s worth it or not.
What Is A Broker Price Opinion?
A broker price opinion (BPO) is just what it sounds like—it’s a professional real estate agent or broker’s opinion regarding the value of your home. Like a home appraisal, the broker price opinion will help you determine the actual value of your home. That said, a BPO is not a legal substitute for an appraisal. Think of one as an informal professional opinion that helps you decide on an appropriate listing price for your home.
How Does A Broker Price Opinion Work?
To provide the BPO, a real estate agent must compare similar properties in the neighborhood that have been sold recently, preferably within the last three months. They then make pricing adjustments to account for various factors, such as location, condition, and home size. BPOs are generally presented as formal written reports, and sometimes they include a professional analysis and summary of the current market conditions in Charlotte.
Generally, broker price opinions have a short shelf life, as property prices are fluid and fluctuate with market conditions. Moreover, some BPOs are based solely on a visual inspection of the home’s exterior, whereas others also take interior elements into account.
Generally speaking, homeowners get broker price opinions when they’re looking to sell a house fast in Charlotte, NC. They use this report to determine whether or not it makes sense to renovate the home before selling. And sometimes, though this is rare, a lender will use a BPO instead of an appraisal to verify the value of your home.
Pros Of A Broker Price Opinion
- It provides a price range based on prevailing market conditions. Since the BPO provides a price range instead of a hard, fixed number, it is helpful when you need to set an asking price.
- It’s quicker than an appraisal. Appraisals are hard to schedule, especially in a busy market. BPOs, on the other hand, are faster and more convenient.
- It costs less than an appraisal. Appraisals are 4 to 5 times more expensive than a BPO.
Cons
- It isn’t as accurate as an appraisal. Appraisals are done by certified and licensed appraisers, whereas BPOs are done by real estate brokers and agents.
- It’s not always an alternative to an appraisal.Most lenders do not accept the BPO as an alternative to a home appraisal.
- It’s subjective. Since the BPO is performed by a real estate agent whose commission is determined by the selling price, it’s considered subjective. On the other hand, a home appraisal is an objective, third-party assessment of your home’s value that’s free of any bias.
When Should A BPO Be Used?
You can use a BPO if you’re looking to refinance your mortgage or determine a fair asking price for your home. It can help with other aspects of the home-selling process too. That said, you cannot use a BPO to obtain a mortgage or a home equity loan. And a lender will require you to get a formal home appraisal before you can sell to a buyer who needs a mortgage.