Property Valuation
What is a 'broker price opinion' (BPO) in Delaware?
AA formal appraisal conducted by a licensed broker
BAn informal estimate of property value prepared by a broker, often used by lenders for foreclosure or refinance decisions✓ Correct
CA price guaranteed by the broker at which the property will sell
DA formal opinion letter required by the Delaware Real Estate Commission
Explanation
A broker price opinion (BPO) is an informal property valuation prepared by a licensed real estate broker. It is often used by lenders to determine value for loan modification, short sale, or REO disposition, but is not a substitute for a formal appraisal.
Related Delaware Property Valuation Questions
- In the sales comparison approach, 'bracketing' means:
- What is the principle of substitution in real estate appraisal?
- The principle of 'progression' in real estate value means:
- The principle of 'regression' in property value means:
- In an income property analysis, 'potential gross income' (PGI) is:
- Using the income approach, if a property has a NOI of $45,000 and the cap rate is 7.5%, what is the estimated value?
- A Delaware property is assessed at $180,000 with an assessment ratio of 60% of market value. What is the estimated market value?
- What is 'effective gross income' in property valuation?
Practice More Delaware Real Estate Questions
1,500+ questions covering all exam topics. Start free — no signup required.
Take the Free Delaware Quiz →