Broker Pricing Opinions
Broker Price Opinion (BPO)
A broker price opinion or BPO is an appraisal of a property that combines the characteristics of the property, market conditions, and broker expertise to assign a value to the property. Depending on the reason for the broker price opinion that will dictate method of calculation for the value of the property.
What is My Building Worth?
Determining commercial property value is more art than science. An experienced commercial broker knows how to combine market knowledge and data with the appropriate valuation method to identify the value of a commercial property.
There are four methods of commercial real estate valuation.
- The sales comparison approach, which relies on sales comparables.
- The cost approach looks at the cost of rebuilding the property.
- The income approach is the most common technique and is based on the amount of income the property is expected to generate.
- The gross rent multiplier method is based on the possible rental income that can be achieved.