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The term “Retro” makes many people think of the 1970s. For real estate agents doing BPO, “Retro” has a completely different meaning.

Simply put, a Retro BPO is a Broker Price Opinion (BPO) that asks the real estate agent to give their opinion of a property’s value as of a specific date in the past. It may seem strange, but it is a useful tool that will be explained in this article.

Here’s an example of how a Retro BPO works: A bank or lender needs to know how much a property was worth on 3/7/2006. They don’t want to know the value of the property today, they want to know the value as of 3/7/2006. The real estate agent needs to access your MLS program and search for comparable sales from that time period. The real estate agent will state that TODAY is 7/3/2006. For most broker price opinions, the lender wants an agent to go back in time, up to 6 months for comparable sales. With a retro BPO, the agent will look back 0-6 months from the retro date, in this case 7/3/2006. The real estate agent will look at comparable sales from 3/1/2006 to 3/7/2006 in this example.

sales from before 01/03/2006 You will probably need a more detailed explanation of why the agent had to go back so far to get comparable sales. In addition, any comparable sale dated then 07/03/2006 will be rejected because they fall after the given retroactive date.

super simplicity

Carrying out a Retro BPO is very simple. Photographs are not normally required. The real estate agent will need to physically verify if the property is still standing, in most cases. The actual Retro BPO form is also less complicated than a standard interior BPO. This is because there are typically no competitive listings involved like in a normal inside BPO. Only 3 comparable sales, no photos. What could be more easy?

What is the reason for a Retro BPO? There are several reasons – Reason #1 is to determine if fraud has been committed (mortgage and/or appraisal fraud). Some other reasons include probate, divorce, bankruptcy, and insurance. In some cases, a bank will use it as a “check” to make sure their processes/procedures have been followed.

Whatever the reason, retro BPOs serve an important purpose in today’s unstable real estate environment. For real estate agents looking for additional income, Retro BPO is a good way to go.

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