Property Valuation
A licensed appraiser in NH who performs a BPO (Broker Price Opinion) for a lender considering a short sale is:
APerforming a USPAP-compliant appraisal
BProviding a non-appraisal opinion of value that does not meet USPAP appraisal standards✓ Correct
CActing illegally under NH appraiser licensing law
DRequired to use the cost approach only
Explanation
A BPO (Broker Price Opinion) is a service provided by a real estate licensee—not a USPAP-compliant appraisal. Federally regulated lending transactions generally require a licensed or certified appraisal for collateral valuation, but BPOs are used in certain limited situations (short sales, REO) where a full appraisal is not 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.
Short SaleA sale of real property where the sale proceeds are less than the outstanding mortgage balance, requiring lender approval.
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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