What is a BPO?
A Broker Price Opinion (BPO), also known as a Broker Opinion of Value (BOV), is a report that is conducted by a licensed land professional to determine land values. It’s an easy way for landowners to evaluate their property and gain an understanding of the local market condition at no cost.
It’s important to clarify the difference between a BPO and an appraisal. Appraisals are critical, and often required, for a variety of financial and legal scenarios. Appraisals can only be conducted by licensed appraisers, and typically range from a couple thousand to several thousands of dollars (depending on the size, scope and location of the job).
The good news is that, in most cases, a BPO is sufficient for determining land values and market conditions; and the great news is that it is free!
What does a BPO include?
A Broker Price Opinion generally includes a proposed marketing strategy that explains how the land professional will market the property, an overview of the local market conditions, and a summary of comparable sales. The components and structure of a BPO can vary from region to region, but in general, they all serve the same basic function.
The information a land professional uses in a BPO is based on property sales that are similar in size, characteristics and location to the subject property. A good BPO does not consider County assessment values, as those figures rarely account for the current market climate. Nor does it consider values determined by real estate listing services such as Zillow or Trulia. The only way to truly determine the market is to consider actual sales data.
How do I get a BPO done on my property?
It’s simple! Get in touch with your local NLR agent! You can contact a local branch office or find the agent’s info online. National Land takes pride in providing expertise and knowledge to the public and this is a great example of how that is done. So please take these easy steps and determine what your land is worth!