Most of my divorce mediation clients think they need an expensive appraisal to value their house during their divorce. I usually suggest avoiding the cost of an appraisal and, instead, obtain one or two BPOs. But what is a BPO? Real Estate Agent Daniel Brown from Myriad Real Estate Group explains:
A broker price opinion (“BPO”) is an estimate of the value of a property based on current market conditions, recent sales of similar properties, and other factors that can impact the value of a home. This information is typically used to determine the asking price for a property when it is put on the market.
For those going through a divorce, a broker price opinion is an essential piece of information as it can help determine the value of the property that is subject to division. Having an accurate estimate of the value of the property is critical when it comes to negotiating a settlement that is fair and equitable to both parties.
Why is this helpful? Well, if one of wants to keep the house and buyout the other, you need to agree on the Fair Market Value (“FMV”) of the house. If you’re not going to sell it, then usually you’d have to obtain an Appraisal, which can run about $600-$700. In lieu of an appraisal, you can obtain a free BPO from a knowledgeable realtor. That way, you can determine FMV quickly and without the expense of an appraisal.
How do you obtain a BPO? You’ll want to ask a reputable and experienced real estate professional, so you can feel confident you’re both working with a realistic current FMV. Market conditions are fluid, so someone with an expert view of the current local housing environment can help you obtain an accurate value.
Daniel R. Brown is a real estate agent with over 20 years of experience in the industry. He has worked with countless clients going through divorce. He understands the complexities and sensitivity of such situations and offers his services for free to anyone going through a divorce who needs a broker price opinion on their real estate property.
You can reach Daniel Brown at 480.648.9234 (https://www.myriadaz.com/home)