A Broker Opinion of Value (BOV) provides potential sellers with a comprehensive analysis of the value of their property. This detailed report will help a seller arrive at an ideal list price. A BOV takes the following metrics into account:
- Property Profile – This section includes the county’s tax assessor’s description of the property, a plot map describing the property boundaries, and prior MLS listings.
- Market Analysis – The market analysis includes several recently sold comparable properties that can be used to gauge the market’s current state.
- Property Financials – This section includes a financial overview of the property based on the current market value. When calculating the current market value of the property, the following price indicators are taken into consideration: price per unit, price per square foot, GRM, CAP rate, cash-on-cash return, and total return.
- MLS Comparable Sales: Comparable sales include both on-market properties for sale and properties that have recently sold. Many factors influence pricing, including age and property condition, development possibilities, income and expenses, square footage, and location.
- Rent Comparables: This section includes rent comparables with the same bedroom count in close proximity to your building. Rent comparables are a great way to estimate how much you can expect to collect in rent payments.