Property Valuation
What is a Broker Price Opinion (BPO) and how does it differ from an appraisal?
AThey are identical; BPO is just the informal name for an appraisal
BA BPO is an estimate of value performed by a real estate broker, not a licensed appraiser; it is used for certain lender decisions but may not be used for federally-regulated loan origination✓ Correct
CA BPO is always more accurate than an appraisal
DA BPO is performed by the DRE for enforcement purposes
Explanation
A BPO is a value estimate performed by a real estate broker or agent (not a licensed appraiser). It may be used by lenders for servicing decisions (short sales, loan modifications) but cannot be used as a substitute for a full appraisal in federally regulated mortgage transactions.
Related California Property Valuation Questions
- The principle of 'anticipation' in real estate valuation states that:
- Under USPAP (Uniform Standards of Professional Appraisal Practice), a licensed appraiser must retain the workfile for a completed appraisal for a minimum of:
- When using the age-life method to estimate accrued depreciation, the depreciation percentage is calculated by dividing effective age by:
- The principle of anticipation states that value is:
- Gross Rent Multiplier (GRM) is calculated as:
- The 'highest and best use' of a property is defined as the use that meets all four of which criteria?
- The principle of substitution states that:
- Plottage value refers to the increased value resulting from:
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