Broker's Price Opinion (BPO)
What is a Value Opinion?
It is a starting point to find out the value of a property, the amount of data available affects the precision of the study, if the source data is incorrect or there is not enough, alternative sources are sought.
What objective do you have?
The purpose of this appraisal is to have values in a timely manner, Generally, they are not used for making decisions that require a very in-depth study, since values and costs are estimated approximately without resorting to specific quotes for each good.
How is the value of a property obtained by this method?
This appraisal is made solely through the comparative or market approach, it is considered according to the market offer of similar properties in the same area or similar areas.
Difference between opinion of value and real estate appraisal
The difference between the Value Opinion and the Real Estate Appraisal lies in the fact that the first is used with a very more informal and only uses market methodology; The real estate appraisal contains the three methodologies, cost method, income capitalizations.
Furthermore, within a value opinion the added values that exist within a home can be taken into accountFor example: if the house is located within a housing complex, but the owner added another floor, rooms, green areas, etc. This type of valuation takes them into account to tell you what you can do with respect to your real estate and is based on comparisons or similar properties in the area.
How valid is it?
In general, the validity is six months, as long as the property does not undergo modifications during the administrative procedures and there are no economic conditions different from those in which the appraisal was carried out.