i can't remember what the actual acronym stands for (stupid, i kno), but it's basically a quick comp that they run on the property and neighborhood to see what they should be expecting to get for it. i'm assuming you're doing a short sale ...
CHUCKB,
REO stands for Real Estate Owned and is the real estate owned by banks (from foreclosures). Banks have REO departments that deal with the property they own.
You are probably already aware of this but on your myTCI page is a selection called "TOOLS". This has a list of abbreviations and acronyms, however, I just looked and REO has not been entered yet.
hahahaha, this thread is so funny .. b/c a lot of people apparently don't kno all the acronyms .. which i dont either. the only one i really don't know and don't even know what it's telling me is PITI. i kno enuff to kno i SHOULD kno it! hehehe.
I love Buzz words, every little faucet in the mercantile world has them. Some are a little strange. For example when a lender tells you they have obtained a BPO, they are tipping their hand. Instead of springing for a full blown appraisal of the property they paid some slightly retarded highly unqualified Real Estate Person to drive by, open his window look at the property and write a small streamlined report as to his opinion of value.
What is even stranger is the lender has in his base file a copy of an appraisal made at time the loan was recorded. He could have called the appraiser and got an up dating of that appraisal. Probably for the same chump change he paid the real estate broker. But that is the way of the world.
Buzz words change and what you use this day will probably be forgotten ten years from now. Who today uses the term met hook? Thats the oversized cotter pin appraisers used to hook the end of the tape at the edge of a building so they could pull it and get a measurement. Who uses Estate Agent, I do but I go back to the flood. Estate Agent a Real Estate Broker fifty years ago. Twenty years ago it meant a Real Estate Broker who carried his handkerchief stuffed up his sleeve.
Perhaps you have heard the word Baracuda used to describe a lady Real Estate Agent, well twenty years ago they were all called Crocodiles.
Double Escrow, cleaned up and called Concurent Closing. President Johnson used that one. And on and on.
I no longer call my girl friends Dames or Even Dolls, now they are all Business Ladies, come to think of it, they are strictly business ladies, wonder if they will take a check?
lenders typically pay anywhere from
$ 50 to $75 for a driveby bpo and up to $100 for an interior bpo...an appraiser even if it is an update it is a minimum of $250....multiply this by millions of homes....you get my drift..thats what makes sense to them.
You gets what you pays for. A BPO is done by entry level agents who generally don't have a clue, have trouble finding the property, and are easily influenced by everyone. An appraiser is much more skilled (hopefully) and will clock the value more accurately.
This is a case of being penny wise and pound foolish.
but the problem with an appraiser is that they must have access to the interior of the property in order to value the property most accurately..given that 90% of the time the bank doesnt have access a driveby bpo would probably be as accurate as an appraiser because both use the mls as a source of comps when they are valuating a property. (apples for apples) .
as far as the agent being easily influenced, that may happen in a short sale deal whereby the investor meets with the agent at the home and may or may not convince the agent in determining an accurately repair value...being that 90% of the time a driveby BPO is done the influence factor is removed...are there crooked agents that are willing to price a property high because the bank will foreclose on it hoping to get the listing? the answer is yes..
do you think a bank is willing to give repeat business to a broker if they are not doing their job right ..if the bank gets burned by wrong valuations they will eventually give their business to someone else who is more competent. in my area there are brokerages that all of they do is bpo's , manage and sell REO's for banks....this has become a very lucrative business and will become even more in the years to come as foreclosure rates are going up.
are there appraisers that bring valuations on properties to make a loan go through ? absolutely.. being a broker i see this type of thing all the time..remember the S&L scandals....i wonder if those licensed appraisers of the 1980's are still around.
i can't remember what the actual acronym stands for (stupid, i kno), but it's basically a quick comp that they run on the property and neighborhood to see what they should be expecting to get for it. i'm assuming you're doing a short sale ...
brokers price opinion
Thank you very much for the feed back.
Does anyone know what REO stands for.
I Know Stupid.
CHUCKB,
REO stands for Real Estate Owned and is the real estate owned by banks (from foreclosures). Banks have REO departments that deal with the property they own.
You are probably already aware of this but on your myTCI page is a selection called "TOOLS". This has a list of abbreviations and acronyms, however, I just looked and REO has not been entered yet.
-Ed
Real Estate Owned.
How about FSBO?
for sale by owner
how bout ROI and TB?
[addsig]
hahahaha, this thread is so funny .. b/c a lot of people apparently don't kno all the acronyms .. which i dont either. the only one i really don't know and don't even know what it's telling me is PITI. i kno enuff to kno i SHOULD kno it! hehehe.
roi - return on investment
t/b - not sure how you mean, but probably tenant/buyer if referring to L/O
PITI - Principle, Interest, Taxes and Insurance
I love Buzz words, every little faucet in the mercantile world has them. Some are a little strange. For example when a lender tells you they have obtained a BPO, they are tipping their hand. Instead of springing for a full blown appraisal of the property they paid some slightly retarded highly unqualified Real Estate Person to drive by, open his window look at the property and write a small streamlined report as to his opinion of value.
What is even stranger is the lender has in his base file a copy of an appraisal made at time the loan was recorded. He could have called the appraiser and got an up dating of that appraisal. Probably for the same chump change he paid the real estate broker. But that is the way of the world.
Buzz words change and what you use this day will probably be forgotten ten years from now. Who today uses the term met hook? Thats the oversized cotter pin appraisers used to hook the end of the tape at the edge of a building so they could pull it and get a measurement. Who uses Estate Agent, I do but I go back to the flood. Estate Agent a Real Estate Broker fifty years ago. Twenty years ago it meant a Real Estate Broker who carried his handkerchief stuffed up his sleeve.
Perhaps you have heard the word Baracuda used to describe a lady Real Estate Agent, well twenty years ago they were all called Crocodiles.
Double Escrow, cleaned up and called Concurent Closing. President Johnson used that one. And on and on.
I no longer call my girl friends Dames or Even Dolls, now they are all Business Ladies, come to think of it, they are strictly business ladies, wonder if they will take a check?
Remonissing Lucius
lenders typically pay anywhere from
$ 50 to $75 for a driveby bpo and up to $100 for an interior bpo...an appraiser even if it is an update it is a minimum of $250....multiply this by millions of homes....you get my drift..thats what makes sense to them.
www.acronymfinder.com
Good post, because I think a lot of people on this site, even "experienced" people don't know what some of that stuf means.
I think Joel and them should work on having a completely dictionary of sorts that we can all compile together and use as a reference.
Christian "The Solutions Kid" Beebe
[addsig]
lp1:
You gets what you pays for. A BPO is done by entry level agents who generally don't have a clue, have trouble finding the property, and are easily influenced by everyone. An appraiser is much more skilled (hopefully) and will clock the value more accurately.
This is a case of being penny wise and pound foolish.
but the problem with an appraiser is that they must have access to the interior of the property in order to value the property most accurately..given that 90% of the time the bank doesnt have access a driveby bpo would probably be as accurate as an appraiser because both use the mls as a source of comps when they are valuating a property. (apples for apples) .
as far as the agent being easily influenced, that may happen in a short sale deal whereby the investor meets with the agent at the home and may or may not convince the agent in determining an accurately repair value...being that 90% of the time a driveby BPO is done the influence factor is removed...are there crooked agents that are willing to price a property high because the bank will foreclose on it hoping to get the listing? the answer is yes..
do you think a bank is willing to give repeat business to a broker if they are not doing their job right ..if the bank gets burned by wrong valuations they will eventually give their business to someone else who is more competent. in my area there are brokerages that all of they do is bpo's , manage and sell REO's for banks....this has become a very lucrative business and will become even more in the years to come as foreclosure rates are going up.
are there appraisers that bring valuations on properties to make a loan go through ? absolutely.. being a broker i see this type of thing all the time..remember the S&L scandals....i wonder if those licensed appraisers of the 1980's are still around.