Property Valuation
In Minnesota, a broker price opinion (BPO) is:
AA full appraisal that can be used for all lending purposes
BA written estimate of property value by a licensee, generally not as detailed as a formal appraisal✓ Correct
CA legally binding opinion of value for court proceedings
DAn opinion of value issued by the county assessor
Explanation
A broker price opinion (BPO) is an estimate of value prepared by a licensed real estate agent, typically used by lenders for loan workouts, short sales, and REO properties. BPOs are less comprehensive than full appraisals and generally cannot be used to originate new federally related mortgage loans.
Related Minnesota Property Valuation Questions
- A Minnesota appraiser notes that a comparable sale was a 'motivated seller' situation (estate sale, divorce, job transfer). How should this be handled?
- In Minnesota, an 'as-is' appraisal reflects the property's value:
- In the cost approach to value, the appraiser estimates:
- An appraiser uses three comparable sales and makes adjustments. Comparable A adjusted to $310,000, B to $315,000, and C to $308,000. What is the reconciled value if the appraiser weights them equally?
- Plottage (assemblage) value in real estate refers to:
- The principle of conformity in Minnesota appraisal holds that:
- External obsolescence (economic obsolescence) is caused by:
- Which of the following would be the BEST comparable for a 3-bedroom, 2-bath, 1,500 sq ft ranch home in Burnsville, Minnesota?
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