Broker’s Price Opinion (BPO)
A broker’s price opinion (BPO) is a quick property value estimate. See how BPOs use comparables and inspections to aid lenders and sellers.
Definition
A broker’s price opinion (BPO) is an estimate of a property’s value prepared by a licensed real estate agent or broker. BPOs are less formal and less costly than full appraisals, but they provide a useful snapshot of value for lenders, investors, or homeowners considering short sales, foreclosures, or refinancing. An exterior BPO ("drive‑by") is based on a curbside inspection and comparable sales data, while an interior BPO includes a walkthrough and more detailed analysis. Although a BPO can inform pricing decisions, it does not replace a certified appraisal when accuracy is critical.
Why It Matters
A broker's price opinion is a licensed agent's estimate of value, produced faster and far cheaper than an appraisal. Lenders lean on them for short sales, foreclosures and portfolio reviews. The distinction that matters is legal: a BPO is not an appraisal, most mortgage lending cannot rely on one, and its quality depends entirely on the comparables the agent picked.
Examples
A lender orders a $150 exterior BPO on a Tacoma property in default, rather than paying $600 for a full appraisal.
A short sale is priced off a BPO, and the seller successfully challenges it by submitting three closer comparables the agent had not used.
An investor asks for a BPO before bidding at a trustee sale, because there is no access to the interior for a full appraisal.
Tips
Ask which comparables were used and how far away they are. A BPO built from three sales a mile out in a different school zone is not worth arguing from.
If a BPO is pricing your short sale, you can rebut it. Provide recent nearby sales and photographs of any condition issues the exterior view missed.
Do not substitute a BPO for an appraisal when real money depends on the number. It is a screening tool, not a valuation you can lend or litigate on.
Related Terms
Appraisal
Appraisals estimate property market value. Learn how licensed appraisers evaluate comparables, condi...
Broker
A real estate broker is a licensed professional who supervises agents and manages transactions. Lear...
Market Value
Market value is the price a property would fetch in a competitive, open market. Discover how apprais...
Ready to Use Your Real Estate Knowledge?
Now that you understand Broker’s Price Opinion (BPO), let Wayber help you navigate your real estate journey. Our flat-fee service saves you thousands while providing expert guidance.