What is a Broker Price Opinion (BPO)?

A Broker Price Opinion (BPO) is defined as an estimate of the probable selling price of real property. It is typically prepared by a licensed real estate broker or salesperson and serves as a professional opinion regarding the value of a property. BPOs are often used in various situations, such as when a lender is considering a short sale, or during the process of determining listing prices for a property.

The BPO takes into account various factors, including the current market conditions, recent sales data of comparable properties, and the condition of the property in question. This professional estimation assists clients in making informed decisions about selling or purchasing real estate by providing insight into what the property may realistically sell for in the current market.

Other answer choices focus on different aspects of property valuation or market analysis but do not specifically describe the purpose or content of a BPO. For instance, estimating rental value or summarizing tax history does not relate directly to the sales price estimation that a BPO encompasses. Similarly, while understanding market conditions is important in real estate, it is not the primary focus of a Broker Price Opinion, which is distinctly about estimating a property's selling price.