In association with REO properties many times you will see "BPO" also related to homes. BPO stands for "Broker Price Opinion". When a bank takes possession of a property through foreclosure they will hire real estate agents to go out to a home and do a BPO to help them establish market value. Usually the banks will hire 3 different agents to do BPO's just so they can have different opinions. The 3 agents are paid for their work and have and give an unbiased opinion on the property's value. After the banks decide on a price they usually will have a different agent actually list the property for sale.
When people see the term foreclosure tagged to a property they usually think they can get the home for a deal. This is not the case as the banks rely on agents and their BPO's to understand the local market. Agents compare the foreclosure to other sold homes with similar qualities. Some foreclosures don't need any work done to them while others need a complete overhaul. More often I have seen a majority of foreclosures just needing a little love and some minor repairs.
Every community has it's share of foreclosures. In the last year Hawley has had 7 foreclosures ranging in price from $39,000 up to $239,900. Some homes were located in town while others were in the country. In Moorhead there were 38 sold foreclosures in the last year. Currently Moorhead has only 6 foreclosed properties on the market. They range in price from $112,000 up to $174,900.