Broker Price Opinion
The broker price opinion (BPO), also known as a broker opinion of value (BOV), is a real estate professional’s opinion of a property’s estimated value. A BPO is helpful in the early stages of the real estate transaction when setting the list price of a property.
An opinion on the broker price costs significantly less than an evaluation of the land and full appraisal conducted by a third party. The price is based on local and regional real estate market information, current neighborhood conditions, and comparable properties that are currently for sale or have been sold. Valuation techniques used in any comparative market analysis, such as a broker price opinion, are similar to the approaches used by a certified or licensed appraiser.
There are four methods of real estate valuation:
• The sales comparison approach, which relies on sales comparables.
• The cost approach looks at the cost of rebuilding the property.
• The income capitalization approach is the most common technique and is based on the amount of income the property is expected to generate.
• The gross rent multiplier method is based on the possible rental income that can be achieved.
At Real Assistance, Inc. we offer BPO services to brokers and real estate agents and can prepare draft Broker Price Opinion reports as an outsourcing services provider. We follow the standards and guidelines contained in Broker Price Opinion Standards and Guidelines (BPOSG) in determining the probable selling price of residential properties. We do our best to provide our clients detailed reports with the most accurate property information at its inception, as well as providing them the highest quality Broker Price Opinions (BPOs) available. Also, as an additional service, we provide tax projections and tax opinion letters for subject properties of our clients.
*Disclaimer. Draft Broker Price Opinion reports we offer are not an appraisal of the market value of the property. If an appraisal is desired, the services of a licensed or certified appraiser must be obtained.