bpo

Definition

Broker Price Opinion—a real estate professional's estimate of a property's value, essentially an appraisal's less expensive, slightly less official cousin who still gets invited to family gatherings.

Example Usage

The bank ordered a BPO instead of a full appraisal to save costs on the foreclosure property.

Origin

Developed in the 1990s as a cost-effective alternative to formal appraisals

Fun Fact

BPOs typically cost $50-150 versus $300-500 for appraisals, making them popular with lenders dealing with distressed properties in bulk.

Source: Appraisal Institute professional standards documentation

Related Terms

Beginner

rent roll

A spreadsheet listing all tenants in a rental property along with their lease terms, payment history, and unit details—basically the property's financial DNA. It's the first thing savvy investors scrutinize when evaluating a deal.

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Advanced

defeasance clause

A mortgage provision stating that the lender's title interest terminates once the loan is fully repaid. It's the legal version of 'when you pay me back, I promise to stop owning part of your house.'

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batched showings

Scheduling multiple property viewings in rapid succession, typically in the same neighborhood, to maximize efficiency and minimize windshield time. It's speed dating for houses, and just as exhausting.

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Intermediate

price per door

The total acquisition cost of a multifamily property divided by the number of rental units, providing a quick metric for comparing deals. It's how apartment investors reduce complex investments to a single number they can text each other.

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encroachment

When a structure, improvement, or object from one property illegally extends onto a neighboring property. It's your neighbor's fence being three feet on your side, discovered precisely when you're trying to sell.

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Beginner

appraised

The past-tense acknowledgment that a professional has officially determined your property's market value, often resulting in celebrations or tears depending on whose side you're on. This valuation becomes the gospel truth for lenders deciding how much money they'll actually give you. Getting appraised is like being graded on a test where the questions keep changing based on what your neighbor's house sold for.

🏠 Real Estate

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