What does "broker's price opinion" (BPO) mean?

A broker's price opinion (BPO) refers to a valuation of a property provided by a real estate broker. This assessment is typically done when the broker uses their expertise and knowledge of the local real estate market to estimate the property's value, often for the purpose of pricing a home for sale or for use in a short sale.

Unlike a formal appraisal conducted by a licensed appraiser—which is usually more comprehensive and follows strict guidelines—a BPO is less formal and can be based on a variety of factors including recent sales of comparable properties, current market trends, and the broker's personal insight into the property and its neighborhood. This makes BPOs more accessible and quicker to produce than formal appraisals.

While negotiating sales prices and assessing market conditions are important skills for brokers, these actions do not specifically define what a broker's price opinion is. Instead, BPOs serve as a specific tool that brokers use to provide a quick valuation based on their local expertise.