What Is a Broker Price Opinion (BPO)?

A Broker Price Opinion (BPO) is an estimate of a property's value prepared by a licensed real estate broker or agent. Lenders, investors, and asset managers use BPOs as a faster, more cost-effective alternative to a full appraisal.

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💡 Why BPOs Matter

BPOs provide a quick pricing estimate when a full appraisal isn’t required. They help determine market value for loan decisions, distressed properties, and situations where speed and cost efficiency matter.

  • Used by lenders during refinances, short sales, and foreclosures.
  • Faster and cheaper than full appraisals.
  • Helpful for investors analyzing market value.
  • Not the same as an appraisal and may not be accepted for all loan types.

For related valuation tools, visit: What Is a CMA?

📌 What Does a BPO Include?

A Broker Price Opinion typically includes a pricing estimate along with market data and property condition details. Depending on the type of BPO, it may be an exterior (drive-by) or full interior inspection.

  • Recent comparable sales (comps)
  • Active and pending listings
  • Estimated days on market (DOM)
  • Neighborhood trends
  • Property condition and needed repairs
  • Recommended price range
  • As-is vs. repaired value

BPO formats vary depending on whether they are ordered by lenders, asset managers, or real estate investors.

🔎 Types of BPOs

There are two main types of Broker Price Opinions:

  • Drive-By (Exterior) BPO — Broker evaluates the property from the outside and uses market data.
  • Interior BPO — Broker enters the home, photographs it, and evaluates the full condition.

Interior BPOs are generally more accurate but take more time to complete.

❗ FSBO Warning: A BPO Is NOT an Appraisal

Many sellers assume a BPO is the same as an appraisal — but it’s not. BPOs are quicker and cheaper but may not be accepted by lenders for mortgages or formal underwriting.

  • BPOs cannot replace a licensed appraisal in most home loan situations.
  • Pricing may vary based on broker experience.
  • Lenders may reject BPOs for conventional or FHA loans.
  • Use BPOs for guidance, not as the only valuation method.

For a full lender-approved valuation, consult a licensed appraiser.

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