Property Valuation
A broker's price opinion (BPO) differs from a formal appraisal in that a BPO:
AIs prepared by a licensed appraiser
BIs a less formal estimate of value prepared by a real estate licensee, not a licensed appraiser✓ Correct
CHas greater legal standing in court
DIs required for all mortgage transactions
Explanation
A BPO is an informal estimate of value prepared by a real estate licensee. It is not a formal appraisal and cannot be used for mortgage lending purposes.
Related Alabama Property Valuation Questions
- An appraisal that understates value is called:
- The principle of increasing and decreasing returns states that adding more improvements to a property:
- An appraiser who uses paired sales analysis is attempting to:
- Under USPAP, an appraiser's assignment must identify the intended use and intended user because:
- Which of the following properties would most likely be appraised using the cost approach as the primary method?
- An operating expense for an investment property that is NOT included when calculating NOI is:
- A straight-line method of depreciation for appraisal purposes assumes that:
- Net operating income minus debt service equals:
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