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Broker Price Opinion / Comparative Market Analysis
Broker Price Opinion (BPO) / Comparative Market Analysis (CMA)
A Broker Price Opinion (BPO), often produced as a Comparative Market Analysis (CMA), is a professional estimate of a property’s current market value based on an objective review of recent comparable sales, active listings, market trends, and property-specific characteristics. BPOs/CMAs are used by real estate brokers, lenders, asset managers, investors, and homeowners to make informed pricing, marketing, acquisition, or disposition decisions when a formal appraisal is not required.
What’s included
Subject property summary: address, property type, square footage, bedroom/bath count, lot size, year built, condition, notable features or defects, and recent improvements.
Market area overview: neighborhood characteristics, school district, crime/safety considerations, local demand indicators, and recent economic or zoning changes that affect value.
Comparable sales (sold comps): 3–6 recently sold properties similar in size, age, condition, and location; sale prices and sale dates; adjusted price analysis to account for differences with the subject property.
Active and pending listings: current competition in the market to gauge pricing pressure and buyer demand.
Expired/withdrawn listings: properties that failed to sell to identify pricing pitfalls or market resistance.
Price reconciliation and suggested listing/range: reconciled opinion of market value presented as a single suggested price or a recommended price range for listing, short sale, or quick disposition.
Marketing and time-on-market analysis: recommended marketing strategy and expected days on market under current conditions.
Photos and data sources: exterior/interior photos (if available), public records, MLS data, recent market reports, and any condition notes based on inspection or walkthrough.
Signature and certification: broker/agent identification, license number, date, and any disclosures or limitations of the opinion.
When to use a BPO/CMA
Pricing a home for sale or listing strategy
Pre-listing market assessment
Loan workouts, short sales, or REO disposition
Portfolio valuation for investors or asset managers
Refinancing decisions when a full appraisal is not necessary
Probate, divorce, or estate planning where a rapid value estimate is needed
Limitations and disclaimers
A BPO/CMA is not a formal appraisal performed by a licensed appraiser and may not meet requirements for certain mortgage underwriting or legal proceedings.
Accuracy depends on the availability and quality of comparable data, condition assessment, and current market volatility.
BPOs/CMAs typically do not include a detailed interior inspection or cost-based valuation unless specifically requested.
Deliverables and turnaround
Typical deliverable: a 1–6 page report with narrative, comps grid, photos, and pricing recommendation.
Typical turnaround: 24–72 hours depending on complexity, access to data, and whether an interior inspection is required.
A well-prepared BPO/CMA offers an efficient, market-driven estimate of value that helps stakeholders set realistic expectations, craft effective pricing strategies, and move transactions forward with confidence.
Broker Price Opinion (BPO) / Comparative Market Analysis (CMA)
A Broker Price Opinion (BPO), often produced as a Comparative Market Analysis (CMA), is a professional estimate of a property’s current market value based on an objective review of recent comparable sales, active listings, market trends, and property-specific characteristics. BPOs/CMAs are used by real estate brokers, lenders, asset managers, investors, and homeowners to make informed pricing, marketing, acquisition, or disposition decisions when a formal appraisal is not required.
What’s included
Subject property summary: address, property type, square footage, bedroom/bath count, lot size, year built, condition, notable features or defects, and recent improvements.
Market area overview: neighborhood characteristics, school district, crime/safety considerations, local demand indicators, and recent economic or zoning changes that affect value.
Comparable sales (sold comps): 3–6 recently sold properties similar in size, age, condition, and location; sale prices and sale dates; adjusted price analysis to account for differences with the subject property.
Active and pending listings: current competition in the market to gauge pricing pressure and buyer demand.
Expired/withdrawn listings: properties that failed to sell to identify pricing pitfalls or market resistance.
Price reconciliation and suggested listing/range: reconciled opinion of market value presented as a single suggested price or a recommended price range for listing, short sale, or quick disposition.
Marketing and time-on-market analysis: recommended marketing strategy and expected days on market under current conditions.
Photos and data sources: exterior/interior photos (if available), public records, MLS data, recent market reports, and any condition notes based on inspection or walkthrough.
Signature and certification: broker/agent identification, license number, date, and any disclosures or limitations of the opinion.
When to use a BPO/CMA
Pricing a home for sale or listing strategy
Pre-listing market assessment
Loan workouts, short sales, or REO disposition
Portfolio valuation for investors or asset managers
Refinancing decisions when a full appraisal is not necessary
Probate, divorce, or estate planning where a rapid value estimate is needed
Limitations and disclaimers
A BPO/CMA is not a formal appraisal performed by a licensed appraiser and may not meet requirements for certain mortgage underwriting or legal proceedings.
Accuracy depends on the availability and quality of comparable data, condition assessment, and current market volatility.
BPOs/CMAs typically do not include a detailed interior inspection or cost-based valuation unless specifically requested.
Deliverables and turnaround
Typical deliverable: a 1–6 page report with narrative, comps grid, photos, and pricing recommendation.
Typical turnaround: 24–72 hours depending on complexity, access to data, and whether an interior inspection is required.
A well-prepared BPO/CMA offers an efficient, market-driven estimate of value that helps stakeholders set realistic expectations, craft effective pricing strategies, and move transactions forward with confidence.