A Broker Price Opinion (BPO) is an estimate of the value of a property, typically prepared by a licensed real estate broker or agent. It is used to provide a quick, less formal alternative to a full appraisal. BPOs are often requested by lenders, investors, or financial institutions for purposes like assessing a property’s current market value, determining the amount of a foreclosure sale, or evaluating a distressed property.
There are two main types of BPOs:
- Exterior BPO: The broker evaluates the property from the outside, usually from the street or through public records, and gives an estimated value based on the external condition of the property, nearby comparable sales (comps), and market trends.
- Interior BPO: The broker performs an interior inspection of the property in addition to the exterior inspection, providing a more detailed estimate of value based on both the internal and external condition of the property.
BPOs are generally less expensive and quicker to produce than full appraisals, but they may not carry the same level of detail or legal standing, depending on the situation.