What is a broker price opinion (BPO)? A first guide for real estate agents

KW Default Solutions

Last updated October 30, 2026

If you've built a CMA, you can learn BPO work. Here's what an order asks of you and what to check before you accept your first one.

This guide is for licensed agents who are new to BPOs. KW Default Solutions (KWDS) trains agents to work with default-related sales. Here you'll learn what the work involves, how agents find orders and how to decide whether an order is worth taking. It's an introduction. Before you take an order, check with your broker.

01Why would an agent learn BPO work?

If you've built a comparative market analysis (CMA), you already know how to study local sales to help a seller or buyer choose a price. Some of that carries over. What changes is the reader. Your report goes to a client with a loan or property decision to make, and the order sets what you must include.

There are three good reasons to learn BPO work. The fee is just one of them.

1. It builds the habit of supporting your price. A BPO asks you to weigh comparable sales, condition and the market, then write down why. That habit helps in every pricing conversation.
2. It shows you how short sales and foreclosures get priced. NAR says non-appraisal opinions such as BPOs may suit short sales, foreclosures and loan modifications when the law doesn't restrict them. [2] Once you've written one, you can respond to a lender's value with your own evidence.
3. It can be paid work. Orders come with a fee. Whether the fee makes sense depends on your time, travel and costs, covered below.

A BPO doesn't guarantee you a listing. NAR notes that a licensee who completes these services isn't necessarily assured of receiving the listing. [2] When a company pays for a BPO, it's paying for the report. Listing the home is a separate decision.

02Who orders a BPO, and what do they use it for?

Common requesters include:

• Lenders: companies that make mortgage loans.
• Loan servicers: companies that collect loan payments and manage the loan account.
• Asset managers: firms that manage and sell properties for a lender or investor.
• Investors: people or firms that own loans or properties.
• Valuation companies: vendors that take orders from clients like these and assign them to local agents.

Fannie Mae's glossary says BPOs are commonly used for quality control and loss mitigation. [1] Loss mitigation means ways to reduce a lender's loss on a loan that's in trouble. The purpose can differ from order to order. Read each one to find the intended use, which is the decision the report supports, and the intended user, which is who will rely on it.

Not every BPO involves a foreclosure. An order doesn't mean the home is REO, which is a home owned by a lender or loan investor. It doesn't mean foreclosure has started, either.

03How is a BPO different from a CMA or an appraisal?

Sources for the table: NAR, except the Standards row. [2] Don't describe a BPO as a small appraisal or a replacement for one.

Federal law adds one limit. In conjunction with the purchase of a consumer's principal dwelling, a BPO may not be the primary basis for determining a property's value for the purpose of originating a residential mortgage loan secured by that property. [3] That doesn't answer every state licensing question or client rule. Some states limit who can prepare a BPO and what it can be used for. Your broker will know your state's rules.

04What does the agent do on a BPO order?

The order controls what you must do, and every order is different. The example below is fictional. It shows one possible exterior assignment, not a standard order.

A valuation company sends an order for an exterior BPO on a house in your market. It gives you the address, a due date, a fee, a report form and photo requirements. Here are the six steps on an order like this:

1. Review the order. Confirm the property, the intended use, the due date and exactly what it asks you to do. An order doesn't, by itself, give you permission to enter a property.
2. Research the property. Pull facts such as bedrooms, bathrooms, square footage, year built and lot size from public records and the MLS (multiple listing service). If sources disagree, write down the conflict. Don't just pick the easier number.
3. Make the observations the order allows. Follow the access instructions, note what you can see and take the required photos.
4. Choose comparable sales. A comp is another property you use as evidence of the home's probable price. Pick homes that compete for the same buyers, and explain why. Support any adjustment, which is a dollar change for a difference between a comp and the home, with market evidence. Don't copy a number from another report.
5. Explain your price opinion. Orders can ask for different price types. An as-is value is the home in its current condition. A quick-sale value is the likely price if the home must sell in a short window. The order defines which ones it wants, so read it closely.
6. Check and submit. Make sure the photos, fields, comps and comments all describe the same house and that you've met the deadline.

Keep neighborhood comments to facts about the setting and the market, and follow fair housing rules.

The most useful habit in the job is keeping three kinds of information apart:

An exterior view can't tell you the home's interior condition, whether the utilities work or what caused damage you can see from outside. An interior BPO adds approved access inside, and it still isn't a home inspection. If a key fact is missing or the order is unclear, say so and ask the client how to proceed. Write it so the client can follow your reasoning, and only sound as sure as your evidence lets you.

05How do agents get BPO assignments?

There is no single portal that connects you with every BPO company. Agents apply to valuation companies and platforms one at a time. Each company sets its own approval process and decides who gets orders. KWDS's sign-up guide suggests this path:

1. Get your basics ready. That means your license and brokerage details, the counties or ZIP codes you can truly cover, E&O insurance details if the company asks and your MLS and board memberships. E&O is errors and omissions insurance. Add a short summary of your experience.
2. Build a shortlist. Look for companies that are active in your area. Applications often ask which services you'll do, such as exterior, interior or desktop assignments. A desktop assignment is done from records, without a visit.
3. Apply to a manageable batch. KWDS suggests about 5 to 10 companies instead of every name you can find. Be honest about your experience.
4. Keep a record of each application. Note the company, the date, the status and your follow-up date.
5. Watch which companies actually send orders. Approval doesn't mean steady work.

These steps are KWDS's suggestions, not industry rules. Don't assume one company's requirements apply to another.

06Is a BPO order worth taking?

Run this checklist before you accept any order:

☐My broker confirmed this work is allowed in my state and under our brokerage's rules.

☐I know the client, the intended use and who will rely on the report.

☐I've read the scope, access instructions, photo requirements and report terms.

☐The property is within my skills, and I can meet the deadline. An unusual property type may not be within them.

☐I've disclosed any interest I have in the home, such as a listing or a chance to represent a buyer or seller.

☐The fee covers all the work: driving, photos, research, writing, data costs and revisions.

☐I know when I'll be paid, what happens if the order is canceled and which revisions the fee covers.

☐The client and payment process look legitimate. I won't send sensitive account details through an unverified request.

Base your price on the evidence, even if you're hoping for the listing. And remember the fee isn't all yours to keep once you count your time and costs. A few scattered orders are different from a planned line of business. If you want the second, track where your orders come from, which companies pay on time and how often reports come back for revision.

Your next step: before your first order, take a sample assignment to your broker and ask, "Am I allowed and prepared to do this for this intended use?"

Check yourself

1. An order arrives for a house. Does that mean foreclosure has started?
2. Is a BPO a smaller appraisal?
3. From the street, you see peeling paint. An old listing says the roof was replaced. How do you write each one?
4. A valuation company approves your application. Does that mean steady orders?
5. Can a BPO be the primary basis of value for a loan to buy a consumer's main home?

Answers:

1. No. An order doesn't mean the home is REO or that foreclosure has started. Read the order to find the intended use.
2. No. It's a separate kind of opinion. It must make clear to the user that it isn't an appraisal.
3. "I observed peeling paint on the exterior trim." And "An earlier listing reported a roof replacement." Add that current interior condition was not verified.
4. No. Each company decides who gets orders.
5. Not as the primary basis. Federal law says a BPO may not be the primary basis of value for originating that kind of loan. Check state and client rules, too.

07Where can you learn more with KWDS?

KWDS trains agents to work with default-related sales, and BPOs are one part of that. Inside the KWDS community, you'll find BPO training and a BPO companies directory.

If you're a KWDS member, start with the BPO training. Then use the directory to build your shortlist.

KWDS teaches the work. It doesn't supply orders, and it can't promise that any company will approve you.

If you're weighing your first BPO order and want a second set of eyes, reach out to the KWDS team.

Sources

1. Broker price opinion, Fannie Mae Selling Guide glossary
2. Responsible Valuation Policy, National Association of REALTORS® (NAR)
3. 12 U.S.C. § 3355, Broker price opinions, U.S. Government Publishing Office

This article is general education for real estate professionals. It isn't legal, tax or credit advice. State law, your brokerage's rules and the specific assignment decide what BPO work is allowed and how a report can be used. All examples are fictional.