Nevada License Law
What is a 'broker's price opinion' (BPO) and can Nevada licensees provide them?
AA BPO is an appraisal performed by a licensed broker under USPAP
BA BPO is an informal estimate of value prepared by a real estate licensee, often requested by lenders for REO properties and short sales; Nevada licensees may prepare BPOs as part of their professional services, provided they clarify it is not a licensed appraisal✓ Correct
CBPOs are illegal in Nevada
DOnly NRED-certified brokers may prepare BPOs in Nevada
Explanation
A BPO (Broker Price Opinion) is similar to a CMA — it is an informal value estimate prepared by a licensee using comparable sales analysis. Lenders commonly order BPOs for REO properties, short sale approvals, and portfolio monitoring.
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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.
Short SaleA sale of real property where the sale proceeds are less than the outstanding mortgage balance, requiring lender approval.
Comparable Sales (Comps)Recently sold properties similar in size, condition, and location used by appraisers and agents to estimate a property's market value.
Loan-to-Value Ratio (LTV)The ratio of a mortgage loan amount to the appraised value or purchase price of a property, expressed as a percentage.
State-Specific Concepts
License Law
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