Can I charge a fee for a Broker Price Opinion (BPO)?
Yes. While a BPO is not defined by Florida Statutes, a BPO is an opinion of the most accurate price for a distressed property, such as a property in foreclosure or one in which the seller is seeking the lender’s approval for a short sale (in a short sale, the lender accepts less than the mortgage amount to enable a distressed homeowner to sell the property). A BPO is not a certified appraisal. In a certified appraisal, a specially trained appraiser uses standardized guidelines to determine a property’s fair market value, or the price a willing buyer would pay and a willing seller would accept in an arms-length transaction. In a distressed sale, the seller is either a homeowner under pressure to sell immediately because of financial distress or a lender not in the business of holding real estate. Both situations typically result in a sales price lower than fair market value. In addition to lenders, retirement fund advisors who oversee portfolios in which real estate is held and estates
