Broker price opinion
A real estate broker's written opinion of value, less formal than an appraisal. Common in short sales and REO deals. Cheaper and faster than an appraisal.
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Free to set up. No credit card.Part 1 of 4
Why a seller cares
A BPO is an agent's written estimate of value, cheaper and faster than an appraisal. Lenders use it in short sales; sellers meet it as the pricing document behind some agent conversations.
Part 2 of 4
A simple example
A short-sale lender orders a BPO on your home. The agent drives by, pulls three comps, and reports $245,000 within a few days for a fee of about $100.
| The document | Who makes it, and how deep it goes |
|---|---|
| Broker price opinion | A licensed agent, from comps and often a drive-by |
| Comparative market analysis | Your own agent, from comps, as a pricing conversation |
| Appraisal | A licensed appraiser, from comps and an inspection of the home |
A BPO is a quick professional read on value, not a lender's appraisal.
Part 3 of 4
What people get wrong
That a BPO is binding. It is an opinion a lender or a seller asked for, and an appraisal can disagree with it.
Part 4 of 4 · where to read next
Where it appears in the sale
What a definition is, and what it isn't
Keighbor is a software company, not a law firm, brokerage, or tax adviser. This is general information, not legal, tax, financial, or real estate advice about your sale. Your situation may differ. Before acting on a contract, disclosure, title, tax, or pricing question, ask an appropriately licensed professional in your state.
Written and researched by Keighbor Research · drawn from the reference glossary · how we research and check what we publish
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