What is a broker's price opinion (BPO)?

A broker's price opinion (BPO) is a professional assessment of a property's value that real estate professionals, such as brokers or agents, provide. It is often commissioned by banks, attorneys, or even homeowners who need to understand the potential market value of a property. The BPO typically considers several factors, such as the condition of the property, recent sales of comparable homes in the area, and current market trends.

The key aspect of a BPO is that it is not as comprehensive as a formal appraisal. Instead, it serves as an opinion to guide decision-making regarding buying or selling a property. It is especially useful in situations such as short sales or foreclosures where a quick and cost-effective valuation is needed.

In contrast, the other options do not accurately represent what a BPO entails. A detailed property inspection report focuses more on the physical condition of the property rather than its market value. Comparing similar properties sold, while a part of the BPO process, does not capture the entire essence of what a BPO is, as it also incorporates the broker's insights and market analysis. Finally, a binding agreement on property valuation suggests a formal contract, which is not the case with a BPO; it is merely an opinion rather