What is a "broker's price opinion"?

A "broker's price opinion" (BPO) is defined as an estimate of a property's value provided by a licensed real estate broker. This assessment is typically based on the broker's knowledge of the real estate market and recent sales data in the area. It represents the broker's professional judgment regarding the likely selling price of a property, taking into account factors such as location, property condition, and market trends.

BPOs are often used in various scenarios, including setting a listing price for a property, evaluating a property for sale, or even for short sales and foreclosures. They are less formal than a full appraisal but are still grounded in research and market analysis conducted by someone knowledgeable about the local real estate landscape.

A choice regarding an opinion expressed by the borrower does not capture the essence of a broker's price opinion, as a BPO is constructed by a broker based on their expertise rather than the borrower's perspective. Similarly, while a report based on previous sales can be part of the analysis leading to a BPO, it does not fully represent what a BPO is. Lastly, a BPO is not the same as an appraisal, which is a more detailed and regulated evaluation typically required by financial institutions when underwriting loans. Thus,