Broker Price Opinions in Florida
A broker price opinion (BPO) is a licensed broker's estimate of a Florida property's probable selling price, used by lenders and servicers for decisions where a full appraisal is not required.
Uses
Florida BPOs serve lender needs for loan modifications, short sale approvals, REO (real estate owned) pricing, portfolio assessments, and loss mitigation decisions. BPOs cost significantly less than full appraisals ($50-$150 versus $300-$600+) and can be completed faster, making them efficient for high-volume lending decisions.
Limitations
BPOs cannot substitute for appraisals in mortgage origination for transactions over $400,000 under federal regulations. BPOs do not include the detailed analysis, cost approach, or income approach found in full appraisals. They represent a professional market opinion rather than a certified valuation meeting USPAP standards.
Related Terms
Barnes Walker Real Estate
Barnes Walker advises on property valuation in Florida transactions. Contact us for guidance.
Reviewed by the attorneys at Barnes Walker, Goethe, Shea & Robinson, PLLC