What is a real estate "broker price opinion" (BPO)?

A broker price opinion (BPO) is defined as an estimate of a property’s value provided by a licensed real estate broker. Brokers use their knowledge of the local market and comparable property sales to assess a property's worth. This opinion is often used in various scenarios, such as determining listing prices, assisting lenders in foreclosure situations, or providing insights for short sales. A BPO is based on the broker's expertise and the current market conditions rather than a formal appraisal, which is a more detailed and regulated process conducted by an appraiser.

In contrast, an official appraisal of a property requires specific qualifications and is a distinct process from a BPO. An offer made by the buyer to the seller refers to the proposed terms for purchasing the property and does not assess its value. Similarly, a loan estimate provided by a lender relates to the financing terms rather than the property's market value. Thus, the definition stating that a BPO is an estimate provided by a broker accurately encapsulates its purpose and function in the real estate industry.