What is a Broker Opinion of Value (BOV)?What is a Broker Opinion of Value (BOV)? 

A BOV is a written opinion, prepared by a real estate broker, of what a property is likely to sell or lease for in the current market. It is useful before listing, when an offer arrives, or when you are deciding whether to sell, lease, or hold.

The National Association of REALTORS® (NAR) covers broker price opinions under the heading "non-appraisal opinions" in its Responsible Valuation Policy. The policy says non-appraisal opinions shall be prepared by a real estate licensee or by a registered, licensed, or certified appraiser, and must make clear to the intended user that they are not appraisals.^[3]

An appraisal is a separate product with its own standards. The national standards for real estate appraisal are the Uniform Standards of Professional Appraisal Practice (USPAP), published by The Appraisal Foundation, which describes itself as authorized by Congress as the source of appraisal standards and appraiser qualifications.^[2]

Florida law draws the line explicitly. Section 475.612 of the Florida Statutes ("Certification, licensure, or registration required") does not apply to a real estate broker or sales associate who, in the ordinary course of business, performs a comparative market analysis, gives a price opinion, or gives an opinion of the value of real estate. The statute adds that such an opinion may not be "referred to or construed as an appraisal."^[1]

In practice, that means:

• Who prepares it. A BOV comes from a real estate broker. An appraisal comes from an appraiser, and USPAP is the national standard for that work.^[2]
• What it's for. A BOV is a pricing and marketing tool. If a lender, court, or anyone else requires an appraisal, a BOV is not a substitute: in Florida it cannot be referred to or construed as one.^[1]
• Lending. NAR's policy notes that, generally, when a consumer buys a principal dwelling, broker price opinions may not be used as the primary basis for valuing it for a residential mortgage loan.^[3] For commercial financing, ask your lender which kind of valuation it requires.

NAR's Code of Ethics sets a useful baseline. Standard of Practice 11-1 says that when a REALTOR® prepares an opinion of real property value, it must include:^[4]

• identification of the property and the date the opinion was prepared;
• the defined value or price being estimated;
• limiting conditions, including the purpose of the opinion and who it is for;
• any present or contemplated interest, including the possibility of representing the seller or landlord, or buyers or tenants;
• the basis for the opinion, including the market data used;
• if it is not an appraisal, a statement saying so;
• whether and when the exterior and the interior were physically inspected; and
• whether the preparer has any conflicts of interest.

NAR's valuation policy adds that a non-appraisal opinion should include a review of the property, a review and analysis of the neighborhood, local and regional market information and trends, and a description of comparable properties.^[3]

When you compare BOVs from different brokers, look for those elements. An opinion with no stated basis, no comparables, and no disclosure of the broker's interest gives you a number, not a reason to trust it.

• Before you list. Set an asking price or rent with the comparables in front of you.
• When an offer arrives. Check an unsolicited offer against the market before you respond.
• When you're weighing sell, lease, or hold. See the likely sale price and lease rate side by side.
• Before a refinancing conversation. Get a broker's view of the market first, keeping in mind that a lender may require an appraisal.

Our Broker Opinion of Value is free, written, and comes with no obligation.

1. Tell us about the property on our Broker Opinion of Value page: location, property type, building size or lot size, occupancy, and your goal. You can also email us.
2. A broker reviews your details and follows up with any questions. Documents such as a rent roll or site plan help.
3. The broker reviews your property, comparable sales and listings, and your goals, and sends you a written BOV. There is no automated estimate.

Our BOV is a broker's opinion for marketing purposes. Like every broker opinion in Florida, it is not an appraisal and should not be treated as one.^[1]