Real Estate Glossary

BPO (broker’s price opinion)

This is known as the broker’s price opinion, the primary method for banks determining value when they accept/reject short sales.  The process can take anywhere from a few days to a few weeks.  The accuracy of BPO’s are often disputed because of its lack of thoroughness – usually, done in bulk by appraisers or real estate agents.

While it may have its drawbacks, it still allows the bank a quick and dirty way of determining value and a price range in which it will accept offers at a loss.

Short Sale

A short sale is where the bank receives less than the amount owned on the house.  Typically, this involves a process (the can draw out for months) in which the seller (or borrower) must submit a short sale package that details seller’s income, distressed circumstances/hardship and financial position.