broker price opinion

Intermediate 🏠 Real Estate

Definition

An estimate of a property's value provided by a licensed broker rather than a certified appraiser, often used by lenders for less critical valuations. It's the fast-food version of an appraisal—quicker, cheaper, and potentially less reliable.

Example Usage

The bank ordered a broker price opinion instead of a full appraisal to expedite the short sale process.

Origin

Developed in the 1990s as a cost-effective alternative to formal appraisals

Fun Fact

BPOs became controversial during the foreclosure crisis when some argued their lower standards contributed to inaccurate property valuations.

Source: Real estate appraisal and lending terminology

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