CMAs and BPOs Flashcards
(8 cards)
What is a comparative market analysis (CMA)?
It’s what real estate licensees use to establish listing or offering prices (typically for sellers)
A CMA helps determine a competitive price based on recent sales of similar properties.
Who can prepare a CMA?
A licensee or a broker
This means that both licensed real estate agents and brokers are qualified to conduct a CMA.
Does a CMA have to follow USPAP?
No (because it’s not an appraisal)
USPAP stands for Uniform Standards of Professional Appraisal Practice.
What is a broker price opinion (BPO)?
An estimate of a property’s potential selling price (usually requested by lenders/banks/court)
- BPOs are often used in situations such as foreclosures or short sales.
- licensees can charge for a BPO
How does a BPO compare to a CMA?
It is more formal than a CMA
BPOs typically involve a more detailed analysis of the property and market conditions.
Who can prepare a BPO?
Real estate licensees or brokers, and can charge a price
This allows for compensation for the service provided in estimating property value.
Can a BPO be considered an appraisal?
No
A BPO is not as comprehensive and does not follow the same standards as an appraisal.
Does a BPO need to follow USPAP?
No (because it’s not an appraisal)
This further distinguishes BPOs from formal appraisals that must adhere to USPAP.
