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BPO (Broker Price Opinion)
A property valuation prepared by a licensed real estate broker, less rigorous than an appraisal but used for many lender and investor decisions.
In depth
A BPO is a price opinion provided by a licensed real estate broker, typically based on an exterior or interior inspection plus a CMA-style analysis. BPOs cost $50 to $200, far less than the $400 to $700 typical for an appraisal. Misconception: BPOs do not satisfy lender appraisal requirements for traditional mortgage origination, but they are widely used for short sales, REO disposition, and note investing decisions. Practically, in seller-financing and note investing, BPOs are common because they are fast and cheap. Note buyers commission BPOs to confirm collateral value before purchasing a note. FSBO sellers can use a BPO as a second opinion alongside their own CMA. BPOs are not regulated by the Appraisal Foundation and standards vary widely.
Educational content only. Definitions reflect typical usage in US owner-finance and FSBO transactions; statutes and case law vary by state. Consult a licensed real-estate attorney for fact-specific guidance.