CMA vs BPO

7 Replies

I just wanted to know the difference between a CMA and a PBO?

Also, what is the best way to obtain them? Thanks, Bc 

Competitive market analysis and a Brokers Price Opinion (BPO not PBO) are both provided by real estate agents. I am not sure there is a difference but there may be. A CMA is usually given to consumers. A BPO is usually given to banks. Neither has the weight of an appraisal. Any agent can provide them.

Medium crab1 copyNed Carey, Crab Properties LLC | http://baltimorerealestateinvestingblog.com/

Thanks Ned. I have found your posts very helpful. If I am looking for my next SFH rental unit, then would be best to use an agent to get a good valuation?

CMA is a basic report of 3 listed and 3 sold's etc. by a listing broker.

BPO's use to be very basic but now banks and BPO mills demand reports almost like an appraisal where you have to take off for decks, views, and all kinds of things. BPO's are much more involved.

Medium allworldrealtyJoel Owens, All World Realty | [email protected] | 678‑779‑2798 | http://www.AWcommercial.com | Podcast Guest on Show #47

By rental unit do you mean hold it for income?? If that is what you are saying the CMA versus BPO debate doesn't really matter.

What matters is that you use a broker/agent who owns investment property themselves and knows how to estimate for repairs and cash flow model things out for your holding time.

Of course you verify their numbers yourself.  

Medium allworldrealtyJoel Owens, All World Realty | [email protected] | 678‑779‑2798 | http://www.AWcommercial.com | Podcast Guest on Show #47

A CMA can be done by any realtor. A BPO must be done by the broker of a real estate company. As Ned mentioned this is usually given to a bank. Both reports determine the FMV of a property based on recently sold properties usually within the last 90 days. As an investor you will want to learn to do comps yourself. Getting a CMA or BPO will cost you money. Save your money.

Originally posted by @Brian Christensen  :

Thanks Ned. I have found your posts very helpful. If I am looking for my next SFH rental unit, then would be best to use an agent to get a good valuation?

Heed what @Joel Owens said. Most real estate agents don't have a clue what makes a good investment. (I don't mean this as a slight against RE agents. It's just their focus is selling pretty houses to home owners) Make sure it is an agent that understands the rental business. 

Given the right data you should be able to evaluate a deal yourself. If you do not know how there are plenty of threads on evaluating deals here. There is a difference between market value and what makes sense to an investor.

Medium crab1 copyNed Carey, Crab Properties LLC | http://baltimorerealestateinvestingblog.com/

thanks again. Can you point me in the right direction to doing my own CMA or is that for those who have access to the MLS? I have prelim searched online, but am not getting anywhere.

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