A Broker Price Opinion, or BPO as it is commonly called, is an estimate of price as determined by a real estate broker or qualified person.

In most cases a lender or mortgage company would send a request to an approved real estate broker for either a drive-by BPO or interior broker price opinion. Real estate broker are previously approved by the lender to perform such a price evaluation.

When an interior BPO is requested, the broker must take pictures of the interior and exterior of the property. The broker compares characteristics of the property with other like properties in the area, using a method similar to the comparable market analysis performed by real estate agents. The broker is also required to evaluate damage and estimate repair cost.

A drive-by broker price opinion, is just that --the broker drives by the property and takes pictures of only the outside, along with using a similar process to the CMA.

Most real estate broker sign up with mortgage companies to perform Broker price opinions in order to subsidize their income and generate more business. Most lenders pay just under $100 for an exterior BPO and between $150-$300 for an interior broker price opinion.

If the property is foreclosed, the broker will generally get the listing for the property, and also be charged with it's maintenance and overseeing repairs.

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