In a Sale
What This Means When the House Is Being Sold
This is the document a trust officer or an out of area fiduciary asks for first, usually before anyone has decided whether to sell, repair, or hold. It answers a practical question cheaply: what would this bring as it sits, and what would it bring after work.
Where it does not help is anywhere a number has to survive scrutiny. A broker price opinion will not support a basis position with a tax authority and is not what a lender relies on. Families sometimes get one, put it in a drawer, and later find they needed a retrospective appraisal instead, by which time the property has been cleaned out and changed.
Compare
Not to Be Confused With
- This TermBroker Price Opinion
- Often Mistaken ForAppraisal
- Often Mistaken ForDate of Death Value
What Tells Them Apart
An appraisal is prepared by a licensed appraiser and is what a lender and a tax authority will accept. A broker price opinion is prepared by a real estate licensee and is a decision tool rather than a formal valuation. Date of Death Value is the number an estate actually needs for basis, and supporting it usually calls for the appraisal rather than the opinion.
Questions
Questions People Ask
Is a broker price opinion the same as an appraisal?
No. A broker price opinion is a licensed agent's estimate, produced quickly and at low or no cost. An appraisal is a licensed appraiser's formal report. For deciding whether and how to sell, the opinion is usually enough. For a tax position or a lender, it is not.