Is The AVM Synonymous With A ‘Broker Price Opinion’?
No It Is Not. A Real Estate Brokers ‘Opinion’ Of The Market Value Of A Home, A ‘BPO’ Is Primarily Based Upon Sales History In The Neighborhood, Meaning The Same Subdivision, And Roughly The Same Gross Living Area, Lot Size, Elevation (Style) And Number Of Bedrooms, Baths And Half Baths. A Real Estate Broker (Or Agent Of The Broker, Also A Realtor) Usually Selects Home Sales In A Neighborhood Of Up To One Year From Current Date, Then Approximates These ‘Comparables’ Against A Rough Measure Of ‘Similarity’ (E.G. ‘Sameness’ Between The Subject And The Comparables.) , The Agent Or Broker Then Selects The Highest Three Or More Comparables And Divides The Sum Of Their Combined Sale Prices By The Number Of Comparables. This BPO Method Typically Ignores Many Degrees Of Difference, And Does Not Account For Negative Measures Of ‘Similarity’ Between The Subject And The Comparables. Such Salient Factors Include Year Built, Garage Size, Same Section Within A Subdivision (As Opposed To Merely Same S
