What is a Broker's Price Opinion (BPO)?

A Broker's Price Opinion (BPO) is defined as an informal opinion of value provided by a real estate licensee. This assessment is typically less formal than a comprehensive property appraisal, which includes a detailed analysis of various factors affecting property value and is usually conducted by licensed appraisers.

The BPO is often used by real estate agents to provide sellers with an estimate of what their home might sell for in the current market, guiding decisions on pricing for listings. It can also be used by lenders in considering short sales or foreclosures. This opinion utilizes comparable sales, current market conditions, and the characteristics of the property, emphasizing its informal nature.

Choosing other options would not accurately reflect what a BPO entails. A detailed property appraisal involves extensive analysis, while a type of listing agreement is a contractual arrangement between a seller and a broker. The standard response to market inquiries does not specifically refer to the practice of providing a value opinion like a BPO does. Thus, the definition of a BPO as an informal opinion of value is the most accurate representation of the concept.