BPO & Property Valuation Services

What a Broker Price Opinion Is

A broker price opinion is a licensed real estate broker’s written opinion of what a property would sell for, supported by closed sales of comparable properties and by the inventory the property would actually compete against. It is not an appraisal: an appraisal is prepared by a state-licensed or certified appraiser under the Uniform Standards of Professional Appraisal Practice and is what a lender relies on for a mortgage lending decision. A BPO is a brokerage product, produced faster and at lower cost, and it is what asset managers, servicers and investors use for pricing, disposition decisions, portfolio valuation and loss mitigation. BreakThru Realty produces BPOs as a licensed Florida brokerage, and will tell a client plainly when what they actually need is an appraisal.

Types of Valuation Available

The assignment decides the product, and the brokerage advises which one answers the question being asked rather than steering a client to the most expensive one. A servicer deciding whether to foreclose, an asset manager setting a list price, an investor testing a bid and a trustee reporting to a court are all asking different questions, and the difference between a drive-by and a full interior valuation with a repair schedule is usually the difference between an answer that is adequate and one that is wasted effort. Every type below is available as a standalone assignment.

• Drive-by (exterior) BPO — exterior condition, street and neighborhood photographs, occupancy indication and comparable analysis without interior access
• Interior BPO — full interior and exterior inspection with room-by-room photographs, condition assessment and a repair schedule
• Comparative market analysis (CMA) — the listing-side analysis, for an owner deciding whether and at what price to bring an asset to market
• As-is value — what the property would sell for in its current condition, to the buyer pool that actually buys in that condition
• Market-ready value — what it would sell for after the repairs identified, so the two figures can be compared directly
• Repair-adjusted valuation — an itemized repair schedule with costs, and the value each item is expected to return
• Estimated marketing time — how long the property should take to go under contract at the recommended price, from the days-on-market evidence
• Rental valuation — achievable market rent and rent per square foot, where holding or leasing the asset is on the table

What Is in the Deliverable

Every valuation arrives as a single document containing the subject property’s detail and condition, date-stamped photographs, three or more closed comparable sales with the adjustments applied and the reasoning for each, the active and pending inventory the subject competes against, a neighborhood and submarket assessment, current market conditions with the direction of travel, the repair schedule where one applies, the as-is and market-ready opinions of value, the recommended list price and the estimated marketing time. Where a client has its own form or platform, the brokerage completes the client’s form rather than attaching its own and asking the client to transcribe it.

Neighborhood Analysis and Competing Inventory

A value that ignores what else is for sale is a number, not an opinion. Every BreakThru Realty valuation states what the subject is competing against right now: the active listings a buyer searching that price band and that area would see next to it, what is pending, what has closed and at what discount to list, months of inventory in the submarket, and the neighborhood characteristics that move price within a single ZIP code — waterfront and ocean access, fixed bridges, association fees and rental restrictions, the age and reserve position of the building, school assignment, flood zone and insurance exposure. In South Florida those factors routinely separate two properties on the same street by a wide margin, and a valuation that averages across them is wrong in a predictable direction.

Turnaround Standards

These are the standards BreakThru Realty works to on institutional valuation assignments. They are commitments about process, published so that an asset manager can hold the brokerage to them from the very first assignment; where a deadline cannot be met on a particular asset, the brokerage says so when the assignment is received rather than when it is due.

• Broker price opinion — 24 to 48 hours from the point the property can be accessed
• Occupancy check — Same day where the property is within the coverage area and can be reached safely
• Initial inspection with photographs — On receipt of the assignment, within the timeframe the assignment sets
• Photo documentation — Date-stamped interior, exterior and street photographs with every valuation
• Comparable sales — Drawn from BeachesMLS closed sales, with the competing active inventory alongside them
• Local broker review — Every opinion of value is reviewed by a licensed broker who works the market before it is delivered
• Value reconsiderations — Answered within one business day, with the reasoning and any additional comparables

The Data Behind Every Opinion

Comparable sales come from BeachesMLS, the multiple listing service covering the six Florida counties the brokerage serves, and the brokerage publishes market research computed from that same source: housing-market reports for every city and county it covers, refreshed daily and never typed by hand, with a published methodology explaining what counts as active or sold and how medians, months of inventory and year-over-year changes are calculated. A client reviewing a BreakThru Realty valuation can read the underlying market conditions on the same website and check the opinion against them.

Why Valuation Work Comes First

For most institutions the first assignment given to a new brokerage is a valuation rather than a listing, and that is a sensible way to run a vendor relationship: a BPO is a small, inexpensive, fully documented test of whether a broker knows the market, meets a deadline, photographs properly and writes clearly. BreakThru Realty treats valuation assignments as exactly that test rather than as filler work, and expects to be judged on them. Clients who move from valuation work to listing assignments will find the same broker of record reviewing both.

Ordering a Valuation

Send the property address, the valuation type required, whether interior access is available and how it is arranged, the deadline, and the form or platform the result must be delivered in. The brokerage confirms receipt the same business day, states whether the deadline is achievable before starting rather than after, and delivers on the client’s form. Standing instructions for repeat assignments, and registration on a client’s valuation platform or vendor list, are both arranged from here.

Institutional Credentials

Credential Package

The documents a broker network, asset management platform or approved vendor list registration normally asks for. Request the package and it comes from the broker of record.

• Florida brokerage license record — on request
• Form W-9 — on request
• Certificate of insurance — on request
• Coverage map and county list — on request
• Broker of record biography — on request
• Sample broker price opinion — on request
• Sample weekly asset report — on request

Order a BPO

Send the property address or asset list, the assignment type, the deadlines the file carries and the platform or format you report in. BreakThru Realty confirms receipt the same business day and states whether the deadline is achievable before starting rather than after. To be added to a broker network or an approved vendor list instead, request the credential package above.

Broker of record direct: (786) 914-1017 · sales@breakthrurealty.com

Questions Asset Managers Ask

What is the difference between a BPO and an appraisal?

A broker price opinion is a licensed real estate broker’s written opinion of value supported by comparable sales and competing inventory. An appraisal is prepared by a state-licensed or certified appraiser working under the Uniform Standards of Professional Appraisal Practice, and it is what a lender relies on for a mortgage lending decision. A BPO is faster and cheaper and is used by asset managers, servicers and investors for pricing, disposition and portfolio decisions. BreakThru Realty produces BPOs as a licensed Florida brokerage, and tells a client when what they actually need is an appraisal.

How fast is a BPO from BreakThru Realty?

BreakThru Realty works to a 24 to 48 hour standard for broker price opinions, measured from the point the property can be accessed, with date-stamped photo documentation, comparable sales from BeachesMLS and a local broker’s review included. Occupancy checks are completed same day where the property is within the coverage area and can be reached safely. Where a particular asset cannot meet the standard, the brokerage says so when the assignment is received.

What is the difference between as-is value and market-ready value?

As-is value is what the property would sell for in its current condition, to the buyers who actually purchase in that condition — typically cash and investor buyers, in a narrower pool and at a discount. Market-ready value is what it would sell for after the repairs identified in the valuation, to the full retail buyer pool including financed buyers. BreakThru Realty gives both figures on every valuation, with the repair schedule and costs between them, so the owner can see what a repair spend is expected to return rather than guessing at it.

Does BreakThru Realty do drive-by BPOs as well as interior BPOs?

Yes. A drive-by, or exterior, BPO covers exterior condition, street and neighborhood photographs, an occupancy indication and full comparable analysis without interior access, and is used where the property is occupied or access cannot be arranged. An interior BPO adds a full interior inspection with room-by-room photographs, a condition assessment and a repair schedule. The brokerage will advise which one answers the question being asked.

Can a BPO be ordered without listing the property with BreakThru Realty?

Yes. Valuation is available as a standalone assignment with no obligation to list the asset with the brokerage, and for most institutional clients valuation work is where the relationship starts. Standing instructions for repeat assignments, and registration on a client’s valuation platform or vendor list, are arranged the same way.

What areas does BreakThru Realty complete BPOs in?

Miami-Dade, Broward, Palm Beach, Martin, St. Lucie and Indian River counties in Florida, the footprint covered by its BeachesMLS membership, worked from an office in Fort Lauderdale. The brokerage declines assignments outside that coverage rather than completing them from a distance, because a valuation from a broker who does not work the submarket is the thing an asset manager is trying to avoid.

More for Institutional Owners

• REO & Bank-Owned Property Services
• Institutional Seller & Asset Management Services
• Florida REO Broker

Related on BreakThru Realty

• Bank-owned homes for sale
• Foreclosures and distressed property
• BreakThru Realty Research: housing market reports
• Market data methodology
• Tyson E. Sam, Founder and Broker of Record