What a broker opinion of value is
A broker opinion of value, often called a BOV, is a documented estimate of a property's market value, built from current comparable sales, market conditions, and the physical and financial characteristics of the asset. It is prepared to support a disposition decision, not to satisfy a lending requirement.
What it covers
- Comparable market evidence. Recent sales and active listings of similar assets, adjusted for condition, location, and timing.
- Asset condition and characteristics. Physical condition, income if the asset is income producing, and any factors affecting marketability.
- A value range or point estimate, documented in writing, that supports a reserve or listing strategy.
What it is not
A broker opinion of value is not a full appraisal. It does not carry the same certification, methodology depth, or standing for lending purposes that a licensed appraisal does. For a disposition, that distinction rarely matters: a BOV is built for speed and for the specific purpose of setting a defensible reserve or listing price, and it is grounded in the same current market evidence a full appraisal would draw on.
Where it fits in a disposition
The broker opinion of value is produced during the assessment step of a mandate, alongside title verification and broader market underwriting. It becomes the foundation for the reserve strategy and timeline set in the structuring step that follows, and the written record it creates supports the disposition through to closing.