Property Valuation
An Indiana broker submits a broker price opinion (BPO) for a bank. A BPO differs from an appraisal in that:
AA BPO is more accurate than an appraisal
BA BPO is prepared by a licensed broker (not a licensed appraiser) and does not comply with USPAP or satisfy appraisal requirements for federally related loans✓ Correct
CA BPO may be used for all residential mortgage lending
DA BPO is required by Indiana law for all short sales
Explanation
A BPO is a market value estimate prepared by a real estate broker, not a licensed appraiser, and does not comply with USPAP. It may not be used in place of an appraisal for federally related mortgage transactions.
Related Indiana Property Valuation Questions
- An Indiana appraiser who determines the highest and best use 'as if vacant' is asking:
- Regression in real estate valuation means that:
- In Indiana, an appraisal for a federally related mortgage transaction must be performed by:
- In Indiana, a comparative market analysis (CMA) is performed by:
- The principle of substitution states that a buyer will pay no more than:
- In Indiana, the appraiser's analysis of the market conditions section of the URAR examines:
- The principle of substitution in Indiana real estate appraisal holds that:
- The term 'highest and best use' in Indiana appraisal means the use that is:
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