 | What is a BPO? |
 | “BPO” stands for Broker Price Opinion. A Broker Price Opinion is
prepared by a real estate broker to provide an estimated value
of the probable selling price of a subject property where the
requesting party does not want to incur the expense of an appraisal
of the subject property. The real estate broker determines the
probable selling price of the property by analyzing various factors,
including but not limited to comparable properties in the area.
Broker Price Opinions are generally prepared for a fee. Recently,
the Department of State clarified that only a real estate broker
can collect a fee for preparing a BPO. Accordingly, real estate
salespersons and associate real estate brokers cannot receive
compensation directly for preparing a BPO. The fee for preparing
the BPO would be paid to the real estate broker and the real estate
broker, would, in turn, compensate its salesperson or associate broker.
By: Neil B. Garfinkel,
REBNY Residential Counsel |
|
No comments:
Post a Comment