Property Valuation
A Broker Price Opinion (BPO) in Arizona is:
AA formal appraisal by a licensed appraiser
BAn estimate of property value prepared by a real estate licensee, typically used for REO pricing or loss mitigation✓ Correct
CAn ADRE-required valuation for all listings
DA legally binding determination of value
Explanation
A BPO is a property valuation prepared by a real estate licensee (not an appraiser) based on comparable sales and market knowledge. It is commonly used by lenders for REO pricing, short sales, and loan modifications.
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Key Terms to Know
Appraisal
A professional estimate of a property's market value prepared by a licensed or certified appraiser.
Short SaleA sale of real property where the sale proceeds are less than the outstanding mortgage balance, requiring lender approval.
Comparable Sales (Comps)Recently sold properties similar in size, condition, and location used by appraisers and agents to estimate a property's market value.
Capitalization Rate (Cap Rate)A rate used to estimate the value of income-producing property, calculated as Net Operating Income divided by property value.
Math Concepts
State-Specific Concepts
DRE Regulation
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