Property Valuation
In Massachusetts, a 'broker price opinion' (BPO) is most commonly used by:
AMunicipal assessors for tax purposes
BLenders and mortgage servicers for internal decisions regarding distressed properties✓ Correct
CCourts for eminent domain proceedings
DBuyers to avoid paying for a full appraisal
Explanation
Broker price opinions (BPOs) are ordered by mortgage lenders and servicers for internal purposes (such as evaluating short sale offers or setting REO list prices) but cannot be used as appraisals for federally-related mortgage transactions.
Related Massachusetts Property Valuation Questions
- The term 'highest and best use' in appraisal means the use that is:
- An appraisal performed for a Massachusetts estate settlement purpose is most likely to use:
- A Massachusetts property has a replacement cost of $350,000, land value of $150,000, and accrued depreciation of $75,000. What is the indicated value using the cost approach?
- Regression in appraisal holds that the value of a superior property is:
- An appraiser finds that a comparable home sold for $420,000. It has a garage worth $15,000 that the subject property lacks, and the comparable's lot is $10,000 smaller than the subject's. What is the adjusted sale price?
- A Massachusetts property's effective gross income is calculated as:
- A Massachusetts commercial appraiser uses a 'direct capitalization' approach versus a 'discounted cash flow' (DCF) analysis. DCF is preferred when:
- What is functional obsolescence in a Massachusetts property?
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