What must a Broker's Price Opinion state?

A Broker's Price Opinion (BPO) serves specifically to provide an estimated value of a property based on the broker's knowledge of the market, comparable properties, and various other factors. The essential distinction of a BPO is that it represents an opinion rather than a certified appraisal, which means it is not as formal or regulated as an appraisal performed by a licensed appraiser.

Stating that a BPO is "not a certified appraisal" helps clarify the nature of the opinion, ensuring that clients understand it is not to be mistaken for an official property valuation that a financial institution or court might rely upon. This distinction is crucial to prevent any legal misunderstandings about the expectations regarding the reliability and formality of the opinion presented.

In contrast, the other options imply functions or attributes that do not accurately represent a Broker's Price Opinion. For instance, suggesting that it is an accurate market appraisal misrepresents the informal and opinion-based nature of a BPO. The implication that BPOs should only be used for high-value properties overlooks their wider applicability across all types of properties. Lastly, claiming that a BPO is a legally binding real estate sale is misleading, as BPOs are simply opinions of potential value and do not constitute any kind of transaction