Your real estate agent will provide you with a comparative market analysis, or CMA. This is an in-depth review of your home’s worth in the current market based on the recent sale prices of comparable homes. Any differences, such as the size of the lot or value-added items like a swimming pool, are taken into consideration and the value adjusted accordingly. The broker price opinion (BPO) is another type of estimate, produced by a real estate agent in response to a request from a mortgage lender. A few years ago, when 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 a Realtor® who will stand by his/her appraisal throughout the sale process. BROKER PRICE OPINION
THE COST APPROACH
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