Broker opinion of value (BOV)
A commercial broker's estimate of what a property would sell for, based on its income, comparable sales and market conditions. It is used to pitch listings and set pricing, and is not a formal appraisal.
Also called: BOV, broker valuation, opinion of value
Related terms
A value estimate from a real estate agent or broker, often for a lender on a short sale or foreclosure. It is cheaper than an appraisal but less formal.
A licensed appraiser's professional opinion of what a home is worth. Lenders require one to make sure the home supports the loan amount.
Net operating income divided by the property's price or value. It shows the yearly return before financing and is used to compare properties and estimate value.
Valuing a property based on the income it produces, often by dividing net operating income by a cap rate. It is used mainly for rentals and commercial property.
Recently sold homes near the subject property that are similar in size, age, and features. Appraisers and agents use them to estimate value.