Broker Opinion of Value (BOV) vs CRE Appraisal

追加: 2026-05-28

[00:00:00]What's the difference? What's the difference between an opinion of value and an appraisal, right? I've already told you that we're not licensed appraisers, but yet the methodology is very, very similar. The data that we're tapping into is also very similar because obviously we spend a lot of money on commercial data, you know, proprietary resources that we have to tap into.

[00:00:20]One of the big differences is cost. I can tell you that right now. Commercial [music] appraisals are expensive and they typically can take a lot of time. I mean, you might be looking at a minimum of $3,000 >> [music] >> as a starting point on an appraisal, whereas, you know, to maybe do an individual commercial property you might be looking at five or $600. When we get into portfolios, of course, it's going to get much more expensive than that.

[00:00:39]So, that's one of the big differences, but there too, it's a big difference between somebody who is licensed to give a value versus someone who's giving an opinion. All right, that's why lenders do not count on a BOV in terms of establishing the value of a piece of real estate. They count on appraisers.

[00:00:57]Okay, so I want to make sure that we're super clear on this. That I'm not saying it's the same thing. It's not the same thing. They are held to a higher standard than what a broker is held to when it comes to [music] a broker opinion of value. But like I said, there's many times when a lender is getting ready for a disposition, they need to dispose of or sell an asset and they say, "Go get a broker opinion of value. Go get a broker price opinion and let's determine where we believe this value is at as we take it to market."

[00:01:22][music] So you guys, that's the simple stuff on that side of it. When we do a broker opinion of value, by the way, there's more to it.