Property Valuation
What is the purpose of a Broker Price Opinion (BPO)?
ATo provide an official appraisal for mortgage lending purposes
BTo give lenders an estimate of property value for decisions on distressed mortgages or REO properties✓ Correct
CTo set the asking price for new construction
DTo determine property tax assessments
Explanation
A BPO is an estimate of value prepared by a real estate broker or agent, often used by lenders and servicers for distressed loans, short sales, or REO pricing. It is not an appraisal and cannot be used for mortgage origination.
Related Arkansas Property Valuation Questions
- An appraiser uses three comparable sales with adjusted values of $290,000, $295,000, and $298,000. The subject is most similar to the $295,000 comparable. The appraiser should likely conclude a value of approximately:
- The 'effective date' of an appraisal refers to:
- The income multiplier approach is most reliable for:
- A comparable property sold for $310,000. It has one more bathroom than the subject. The market value of a bathroom is $8,000. The adjusted sale price of the comparable is:
- In the cost approach, land is always valued separately using:
- The principle of contribution in appraisal means:
- The cost of an improvement refers to:
- Operating expenses in the income approach typically include:
Practice More Arkansas Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Arkansas Quiz →