What a BPO is, and what it is not
A broker price opinion is a licensed real estate broker’s written opinion of a property’s market value. I build it from the most recent closed comparable sales, the listings now competing with the property, and the public record on the lot and building. It answers one question: what would this sell for today.
An appraisal is a different document. It is prepared by a state licensed or certified appraiser under separate standards, and it is what a bank usually requires before approving a mortgage. A BPO is faster and narrower. It will not satisfy a lender’s mortgage file or any filing that calls for an appraisal.
I have been selling New York City real estate since November 2001. Pricing is the work of every week, and a BPO is that same work written up for someone who needs the number without necessarily selling.
Who asks for a BPO
Four situations come up most often.
Owners deciding whether to sell
You want the value before you decide to list, refinance or hold.
Partners and heirs
Two or more owners need a neutral number to buy one another out, divide an inheritance or close a partnership.
Attorneys and executors
An estate, a divorce or a dispute needs a documented opinion of value for the file.
Lenders and servicers
A loan portfolio, a short sale or a property taken back needs a quick, grounded read of the market.
The three types of BPO
Pick by the access you have to the property and what your file requires.
Exterior
I view the property from the street. I confirm the exterior condition, the block and the building, and rely on public record and prior sale photos for the interior. This is the most common type for estates and lenders.
Interior
I walk the property. I note condition, layout, renovations and what needs work. It is the fullest opinion of the three and needs an appointment for access.
Desktop
No site visit. I work from public record, prior listing photos and comparable sales. It is the fastest, and it suits a first read or a review of several properties at once.
What the report contains
Every BPO I prepare has the same six parts, in this order.
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Public record. Lot and building, building class, year built, square footage per the Department of Finance, the tax bill and the recorded sale history.
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Market snapshot. How similar properties are selling in the neighborhood: recent prices, how much is for sale and how quickly it sells.
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Closed comparable sales. Three to six closed sales of similar properties, with the adjustments for size, condition, floor and date explained one by one.
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Competing listings. What is on the market now and what yours would be up against if it listed tomorrow.
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Value range. A low and a high, a point value inside that range, and the reasoning that got me there.
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Limiting conditions. What I could verify and what I could not, what I assumed, and the use the opinion is good for. It includes the statement that this is not an appraisal.
How long it takes
A BPO is ready in two business days from the time I have the address, the type and the purpose. An interior BPO depends on when we can schedule access.
If you have a deadline, put it in the form. I confirm by email whether I can meet it before any work starts.
What it costs
If you own the property and are considering a sale, the BPO is complimentary. It is the same analysis I prepare to price a property I am going to represent, and it comes with no obligation.
For lender, legal or estate use, I charge a flat fee, quoted in writing on request before any work starts.
I work in all five boroughs of New York City and the Hudson Valley: co-ops, condos, townhouses, one- to four-family houses and small multifamily buildings.
Questions I get about BPOs
Is a BPO the same as a comparative market analysis (CMA)?
It is the same analysis with a different reader. A CMA is what I prepare for a seller to set an asking price. A BPO is written for a third party, such as a partner, an executor, an attorney or a lender, with the limiting conditions and signature that use requires.
Can a BPO be used for a mortgage?
No. A bank deciding a loan asks for an appraisal prepared by a licensed or certified appraiser. A BPO is not an appraisal and does not replace one.
Do I have to list with you if I request a BPO?
No. The BPO commits you to nothing. If you later decide to sell, I am glad to talk about representing you, but that is a separate conversation.
How do you value a co-op?
From closed sales of apartments in the same building and in similar buildings nearby, adjusted for size, floor, condition and maintenance. Co-op sales are not recorded as deeds, so public record alone misses them. I use closed sales from the listing service.
