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The most common reason for using a broker price opinion, or broker opinion of value, is to determine a property’s current market value, often for pricing it for sale or lease.

Whether a broker opinion of value is better than an appraisal depends on the situation and requirements.

While an appraisal is often required for loans and property sales, a BOV offers a quick and inexpensive estimate of your property’s value.

The accuracy of a BOV can vary based on the broker’s expertise and the quality of data and analysis. Working with a commercial real estate broker with local expertise is crucial to get an accurate property valuation.

A broker opinion of value is carried out by a commercial real estate broker who assesses the property’s value by analysing market data, comparable sales, income potential, and other relevant factors to provide you with an estimate of its current market value.

The income approach and the sales approach are equally common commercial real estate valuation approaches.

While the income approach considers a property’s potential income and risk to determine its value, the sales approach analyses comparable sales in the market to determine a fair and competitive price.

A broker opinion of value is typically good for a few months. However, the validity period of a BOV depends on market conditions and property dynamics.