broker price opinion

Definition

An estimate of a property's value provided by a licensed broker rather than a certified appraiser, often used by lenders for less critical valuations. It's the fast-food version of an appraisal—quicker, cheaper, and potentially less reliable.

Example Usage

The bank ordered a broker price opinion instead of a full appraisal to expedite the short sale process.

Origin

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

Fun Fact

BPOs became controversial during the foreclosure crisis when some argued their lower standards contributed to inaccurate property valuations.

Source: Real estate appraisal and lending terminology

Related Terms

Advanced

seller carry

When a property seller provides financing to the buyer, essentially acting as the bank and holding a note secured by the property. It's the real estate version of 'I'll spot you until payday'—except with six-figure stakes and actual paperwork.

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quiet enjoyment

A tenant's right to use rental property without interference from the landlord or other parties. Not about noise levels—it's about being left alone to live your life between rent payments.

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deposit

Money you surrender to a landlord as insurance against your inevitable humanity—spilling wine, scuffing floors, or daring to hang pictures. In real estate, it's the upfront cash that proves you're serious about a property, which you'll spend the next decade trying to get back. Also serves as a landlord's retirement fund in 47% of rental agreements.

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covenant

A legally binding promise or restriction in a deed governing how property can be used, often imposed by developers to maintain neighborhood character. It's your neighbor's legal standing to care way too much about your fence height.

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wraparound mortgage

A secondary loan that 'wraps around' an existing mortgage, where the new lender pays the original loan. It's financial inception—a loan within a loan, typically used when someone can't refinance.

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eminent domain

The government's constitutional power to seize private property for public use with compensation. Democracy's way of saying 'we love your land more than you do, here's some money, goodbye.'

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Beginner

tbhimo

to be honest in my opinion...