Broker Price Opinion (BPO)

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FLORIDA REAL ESTATE SALES ASSOCIATE COURSE

Real Estate Appraisal

Section 5 of 26

A Broker Price Opinion (BPO) is a more formal estimate of value than a CMA but less formal than a full appraisal. BPOs are frequently requested by lenders who need a quick, inexpensive valuation for a property that is in foreclosure (REO), a short sale, or for portfolio management. In these cases, a broker is hired to drive by the property or inspect the interior and provide a written opinion of price. While real estate licensees can charge a fee for a BPO, they must ensure the report clearly states that it is not an appraisal. The BPO is often used when the expense and detail of a full appraisal are not necessary for the lender’s decision-making.