Property Valuation

In Alaska real estate practice, a broker price opinion (BPO) differs from an appraisal primarily because:

AA BPO is legally binding while an appraisal is not
BA BPO is prepared by a licensed broker or salesperson and is not a formal appraisal meeting USPAP standards✓ Correct
CAn appraisal is used only for insurance purposes
DA BPO always results in a higher value than an appraisal

Explanation

A BPO is an estimate of value prepared by a real estate licensee (not a certified appraiser) for purposes such as setting a listing price or determining a fair purchase offer. BPOs do not meet USPAP standards and are not equivalent to formal appraisals for mortgage lending purposes.

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