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Real estate glossaryNational exam concept

Broker price opinion (BPO)

A broker price opinion is a real estate broker's estimate of a property's probable selling price, often prepared for a lender, servicer, investor, or other client for a permitted purpose.

Exam area: Valuation and Market Analysis

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What does “broker price opinion (BPO)” mean in real estate?

A broker price opinion is a real estate broker's estimate of a property's probable selling price, often prepared for a lender, servicer, investor, or other client for a permitted purpose.

How is “broker price opinion (BPO)” different from the closest wrong answer?

A BPO is not an appraisal and must not be represented as one. A CMA is commonly used to advise a buyer or seller in a prospective listing or purchase.

What is the Georgia-specific rule?

A Georgia licensee must remain within license law, disclose the nature of the service, and avoid implying appraiser credentials the licensee does not hold.

Worked exam example

Scenario

A loan servicer asks a broker for a current probable selling price to help evaluate a possible short sale.

What is the most common exam trap?

Trap correction

The person paying for the report or the presence of a fee does not convert a BPO into an appraisal.

Original exam check

Apply the definition

A loan servicer pays a broker $150 for an estimate of a home's probable selling price to evaluate a possible short sale. What is this report?

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Related terms to learn next

Appraisal

An appraisal is an independent, supportable opinion of value developed by a qualified appraiser for a stated property interest, effective date, intended use, and set of assignment conditions.

Comparative market analysis (CMA)

A comparative market analysis is a broker's analysis of relevant market data and comparable properties to help a seller choose a listing strategy or a buyer evaluate an offer.

Automated valuation model (AVM)

An automated valuation model is a computer-based system that estimates property value by applying statistical or machine-learning methods to public records, property characteristics, and market data.

Short sale

A short sale is a sale in which the anticipated net proceeds are insufficient to pay the mortgage debt and related claims in full, so the secured creditor's approval is needed for a release on agreed terms.

Recommended next complete lesson

Continue with Valuation and Market Analysis complete lesson. It places this term inside the full rule, worked examples, exam traps, and mixed practice required for mastery.
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