Which description best matches a broker price opinion (BPO)?

• A. CMA based on recent sales
• B. BPO is a value estimate more detailed than CMA but not an appraisal
• C. Appraisal performed by a licensed appraiser
• D. Market rent estimate for a property

Answer: (B)

A broker price opinion is a value estimate prepared by a real estate broker or agent that sits between a CMA and a formal appraisal. It’s more detailed than a typical CMA, often incorporating additional data and analysis of factors like property condition and local market trends, but it isn’t prepared to the standardized, formal methods required for an official appraisal. Lenders use BPOs to get a quick, practical estimate of market value for loans, short sales, or foreclosures when a full appraisal isn’t necessary or feasible. An appraisal, by contrast, is conducted by a licensed appraiser and follows strict standards to produce a defensible value, while a market rent estimate focuses on rental value, not sale price.