What is a broker opinion of value?
A broker opinion of value, or BOV, is a licensed broker's written estimate of the price a property would likely bring in today's market. Owners ask for one before deciding to sell, refinance, buy out a partner or plan an estate. For the full definition, see the BOV glossary entry.
What our BOV includes
BOV vs. appraisal vs. BPO
| BOV | Appraisal | BPO | |
|---|---|---|---|
| Prepared by | Licensed broker | State-certified appraiser | Licensed broker or agent |
| Used for | Sell, refinance or hold decisions | Loans, litigation, tax appeals | Lender and servicer reviews, mostly residential |
| Standard | Broker's market opinion | USPAP | Lender's form |
| Typical cost | Free from us | Several thousand dollars for commercial | Paid by the lender |
Lenders and estates that need a broker price opinion can use our BPO services.
A Florida example
Take a 15,450-square-foot multi-tenant office building in Longwood, Seminole County, built in 2000. The illustrative figures below show how the two approaches check each other.
| Office sales in the same size band, past 18 months | $245 to $285 per square foot |
| Sales comparison value | $3.79M to $4.40M |
| Net operating income from the rent roll | $310,000 |
| Income value at a 7.25% to 8.0% cap rate | $3.88M to $4.28M |
| Opinion of value | $3.9M to $4.25M |
Where the two approaches overlap is the defensible range. If the owner had no rent roll to share, the BOV would show the sales range alone and say so. A buyer's lender at 1.25 times debt service coverage would size the loan from that $310,000 of income, which is why the income check matters to the price a buyer can actually pay.
Questions owners ask
What is a broker opinion of value?
A broker opinion of value (BOV) is a written estimate, prepared by a licensed real estate broker, of what a property would likely sell for in today’s market. It rests on comparable sales, the property’s income and current buyer demand.
Is a BOV the same as an appraisal?
No. An appraisal is prepared by a state-certified appraiser under USPAP and is what a lender orders to make a loan. A BOV is a broker’s market opinion. It is faster and usually free, and it is used to decide whether and how to sell, refinance or hold, not to close a loan.
How much does a broker opinion of value cost?
Ours is free and confidential for Florida commercial property owners. There is no obligation to list.
What do you need from me?
The property address is enough to start, because the comparable sales come from the Florida tax roll. A current rent roll and the last 12 months of income and expenses let us add the income check, which makes the range tighter.
How long does a BOV take?
Most are ready within a few business days. Properties with many tenants or unusual uses can take longer.
Which properties do you value?
Office, retail, multifamily, industrial, hospitality, vacant land and agricultural land in Florida.
Who prepares it
Michael R. Linton, Florida Broker #BK703722, managed a mortgage company and originated loans for about 15 years and has sold bank-owned property throughout his 39-year career. Distressed or bank-held property? See distressed commercial real estate in Florida.
A broker opinion of value is not an appraisal and is not prepared by a state-certified appraiser. The example above is illustrative. For informational purposes only; not investment, tax or legal advice. Linton Global Solutions is a Florida-licensed real estate brokerage (Broker #BK703722). If your property is listed with another broker, this is not a solicitation of that listing.