What is a BPO in the context of property evaluation?

A Broker Price Opinion, or BPO, is an assessment typically conducted by a licensed real estate broker or agent to determine the potential sales price of a property. This evaluation is based on various factors, including the condition of the property, recent comparable sales in the area, and current market trends. A BPO is often requested by lenders or investors to provide a quick estimate of a property's value, usually as part of the process for determining loan amounts or during short sale negotiations.

In contrast to a formal appraisal, which must adhere to strict guidelines and is typically conducted by a certified appraiser, a BPO offers a more subjective view of a property's value. It relies on the broker's expertise and understanding of the local market, making it a useful tool for preliminary pricing decisions without the extensive time and costs involved in getting a full appraisal.