Broker price opinion (BPO)
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.
Also called: BPO
Related terms
An agent's estimate of a home's likely sale price based on recent nearby sales and current listings. It guides list prices and offers but is not an appraisal.
A licensed appraiser's professional opinion of what a home is worth. Lenders require one to make sure the home supports the loan amount.
A sale where the lender agrees to accept less than the amount owed on the mortgage. It needs lender approval, can take months, and is usually an alternative to foreclosure.
The legal process a lender uses to take and sell a property after the borrower defaults. Some states require a court case (judicial foreclosure), while others allow a faster non-judicial sale under a deed of trust.
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.