A few years ago, when distressed real estate sales around the country were at their peak, lenders found it difficult to handle the staggering number of transactions. The BPO concept was born. It is less elaborate, and thus less costly, than an appraisal, but more involved than a CMA. There are two kinds of BPOs: drive-by and interior. If the agent has access to the interior of your home, you will obtain a more in-depth and accurate evaluation. No matter your circumstances, you’ll obviously want top dollar from the sale of your home. Therefore, it is crucial to get a reliable evaluation generated by an experienced Realtor®, who will stand by his/her BPO throughout the sale process.
THE COST APPROACH
The cost approach is based upon what it would cost to rebuild your home new, minus depreciation and obsolescence. Would any person buy the property at a price greater than the value of the land and the improvements? It's not likely.
PROFESSIONAL APPRAISAL
A professional appraisal for the valuation of marital property is required when a court is dividing the couple’s assets. Some states require a judge to independently determine the fair market value. There are some circumstances in which a judge may consider information provided by a spouse. You should understand that when a valuation is determined, it may not include latent cost-related issues. If there are plumbing problems under the foundation or the structure has been compromised by a termite infestation, these situations will affect the sale price.
PROFESSIONAL INSPECTION
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