Property Valuation
A Louisiana broker's price opinion (BPO) is:
AA licensed appraisal equivalent to a formal MAI appraisal
BA market-based estimate of value prepared by a real estate licensee, not a state-certified appraisal✓ Correct
CA legally required valuation for all sales
DA property tax assessment tool
Explanation
A BPO is a market value estimate prepared by a real estate licensee using market data. It is not a licensed appraisal — for federally related transactions exceeding certain thresholds, a certified appraisal is required.
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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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