Property Valuation
A broker price opinion (BPO) differs from an appraisal in that a BPO:
AProvides a higher level of accuracy than an appraisal
BIs an estimate of value prepared by a real estate agent or broker, not a licensed appraiser, typically at lower cost✓ Correct
CIs required by lenders for all mortgage loans
DMust comply with USPAP
Explanation
A BPO is an opinion of value prepared by a real estate agent or broker for specific limited purposes (e.g., listing price guidance, REO valuation). It is not an appraisal, does not require an appraiser's license, and does not comply with USPAP standards.
Related Arkansas Property Valuation Questions
- Effective age differs from chronological (actual) age in that effective age reflects:
- An appraiser reviewing an income property's 'rent roll' is examining:
- A property has replacement cost new of $200,000, depreciation of $40,000, and land value of $50,000. What is the appraised value under the cost approach?
- An appraisal is best defined as:
- A comparative market analysis (CMA) is performed by:
- The income approach to value is based on the principle that a property's value is related to:
- The principle of conformity holds that:
- A property's value is most likely to be reduced by external obsolescence if it is:
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