Property Valuation
What is a 'broker price opinion' (BPO) in Idaho?
AAn IREC-required property valuation for all listings
BAn informal estimate of value prepared by a real estate broker based on comparable sales analysis✓ Correct
CThe same as a certified appraisal under USPAP
DA government-required assessment for property tax purposes
Explanation
A BPO is an informal, non-USPAP value estimate prepared by a licensed real estate broker, typically used by lenders for default-related decisions. It is not a substitute for a certified appraisal for loan origination.
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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.
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.
Gross Rent Multiplier (GRM)A quick valuation metric for income properties calculated by dividing the property price by gross annual rental income.
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