What is a Broker Price Opinion?

A Broker Price Opinion (BPO) is primarily utilized to provide an estimate of a property's value, often requested in situations where a financial institution or bank is involved, particularly in the context of bank-owned properties or foreclosures. BPOs are less formal than appraisals and are typically carried out by licensed real estate brokers who analyze various factors, including recent sales of comparable properties, current market conditions, and the overall state of the property. This estimation helps banks and other financial entities assess the value of the property when considering aspects such as a potential sale or eviction of tenants.

The other options do not accurately define a Broker Price Opinion. An official appraisal for tax purposes is typically performed by a certified appraiser and serves a different function than a BPO, focusing on taxation rather than value estimation for a specific property ownership context. A comparison of property values in a neighborhood may describe an aspect of a BPO but does not encapsulate its specific application as utilized for bank-owned properties. Similarly, an investment analysis of commercial properties is relevant to broader real estate evaluations but does not directly pertain to the purpose or function of a Broker Price Opinion.