Glossary

Broker Opinion of Value (BOV)

Also known as: broker price opinion, BOV, BPO

A broker's informal, market-based estimate of a property's likely sale price or value range, prepared using comparable sales, income analysis, and local market knowledge, and distinguished from a formal, licensed appraisal.

A BOV is typically prepared free of charge as a pitch to win a listing assignment or, on the buy side, to help a client set an offer price, and it is far less rigorous and far less liability-exposed than a certified appraisal prepared by a state-licensed appraiser under professional appraisal standards — lenders generally cannot rely on a BOV to satisfy regulatory appraisal requirements. Because a BOV is often prepared in a competitive pitch context, brokers should be aware of the natural incentive to skew the estimate toward whatever value is most likely to win the assignment, and sophisticated owners often request BOVs from multiple brokers specifically to triangulate a realistic range rather than anchoring on one number. A well-supported BOV nonetheless carries real weight in pricing decisions, since it reflects current, granular market activity that a periodic formal appraisal may not fully capture.