Property Valuation
A 'broker price opinion' (BPO) in Missouri is:
AAn appraisal that carries the same legal weight as a licensed appraisal
BA real estate licensee's estimate of value, not a formal appraisal, often used for loan workouts or insurance✓ Correct
CRequired before all property sales
DRegulated by the Missouri Appraisal Commission
Explanation
A BPO is a licensee's estimate of market value (not a licensed appraisal) commonly used by lenders for loss mitigation, short sales, and REO pricing. BPOs cannot be used for federally-related mortgage transactions under federal appraisal independence requirements.
Related Missouri Property Valuation Questions
- A Missouri appraiser values a property using the income approach. The property has gross rental income of $48,000/year, vacancy and collection losses of 5%, and operating expenses of $18,000. What is the NOI?
- A Missouri appraiser making a time adjustment uses a market conditions analysis. In a rapidly appreciating Missouri market, older comparable sales would be adjusted:
- A Missouri appraiser who uses 'hypothetical conditions' in an appraisal must:
- An appraiser using the 'land residual technique' in Missouri is trying to determine:
- Regression in appraisal (Missouri) means a high-value property loses value when:
- A comparable property sold 6 months ago at $300,000 in a market with 2% annual appreciation. What is the time-adjusted value of the comparable for today?
- A Missouri appraiser concludes a value of $285,000. They note that the sales comparison approach was given the most weight because:
- In Missouri, economic life of an improvement refers to:
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