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A broker opinion of value, or a broker price opinion, is a value estimation made by a real estate broker on the basis of several factors, including the propertys condition, values of surrounding properties, and the market conditions in an area.
Expert-Verified The true statement about Broker Price Opinions (BPOs) is that both BPOs and appraisals may be prepared by a real estate licensee. BPOs are estimates of property value that do not require appraiser certification.
A real estate opinion of value is an estimate of the price that a property would likely sell for on the open market. A real estate opinion of value may be requested for a variety of purposes, such as to determine the value of a property for insurance purposes, estate planning, or tax assessments.
A brokers price opinion is often considered a personal opinion, not a representation of fact. So, it is a cost-effective way to determine value but cannot be relied on to get a loan.
To fill out a Broker Price Opinion, the broker should collect relevant data about the property, including its physical condition, comparable property sales, and current market trends. This information is then compiled into a standardized report format that details the estimated value and supporting rationale.
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The sales comparison approach, also known as the market data approach, is used for almost all properties. It also serves as the basis for a brokers opinion of value.

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