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.
Related Alaska Property Valuation Questions
- An Alaska appraiser who cannot find recent comparable sales may use a 'time adjustment' based on:
- The principle of plottage (assemblage) in real estate valuation means that:
- Market value in an appraisal is defined as:
- When appraising a remote Alaska property accessible only by floatplane, an appraiser should:
- An Alaska appraiser is determining the value of a property in a remote area with no comparable sales. Which approach would likely be MOST useful?
- Depreciation in real estate appraisal refers to:
- An appraisal report prepared for a federally related transaction in Alaska must comply with:
- Assessed value in Alaska municipalities is used to:
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