Property Valuation
In Oregon, a Broker Price Opinion (BPO) is typically used for:
AFederal lending purposes requiring a certified appraisal
BLender evaluations of properties for loan workouts, foreclosures, or portfolio management — not as a replacement for a certified appraisal✓ Correct
CEstablishing assessed value for property tax purposes
DDetermining market rent for commercial properties
Explanation
A BPO is an informal value estimate prepared by a licensed real estate broker — not a certified appraiser. Lenders use BPOs for internal portfolio management, short sale approvals, and loan modification decisions.
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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.
Math Concepts
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