A Broker Opinion of Value (BOV) is a written valuation analysis a commercial broker prepares to estimate what a property would sell for in the current market. It’s the standard first step before listing any commercial property, and it’s the document that shapes everything downstream — asking price, marketing strategy, and negotiation position.
What Goes Into a BOV
We build every BOV on three approaches:
Income approach. For tenanted properties, this means applying the cap rate the market is currently paying for comparable income streams in Atlanta and the Southeast to the property’s net operating income. This is usually the primary driver of value for any leased commercial property.
Sales comparison approach. Recent closed transactions of similar property types in the same submarket, adjusted for size, condition, location, and lease terms. Public closing data is often incomplete for commercial transactions, which is where a broker’s transaction network and market visibility matter.
Replacement cost approach. What it would cost to build the asset today. This serves mainly as a sanity check rather than a primary valuation driver, and it’s particularly useful for industrial, medical office, and other specialty building types where comparable sales data is thinner.
We deliver the finished BOV as a written document — the comps, the math, and a recommended pricing strategy — not a verbal number. There is no charge to receive a BOV as part of a listing conversation.
Broker Opinion of Value vs. Appraisal
These are frequently confused, but they’re different documents built for different purposes:
| Broker Opinion of Value | Appraisal | |
|---|---|---|
| Who prepares it | A licensed real estate broker | A state-certified appraiser |
| Primary use | Pricing strategy for a sale or listing decision | Lending, litigation, estate/tax purposes |
| Typical cost | Free, as part of a listing engagement | Several hundred to several thousand dollars |
| Legal standing | Not accepted by lenders as formal collateral valuation | Required by lenders for most commercial financing |
| Turnaround | Days | Often 2-4+ weeks |
A BOV is the right tool for deciding whether and how to sell. An appraisal is the right tool once a lender needs a formally certified valuation for financing purposes — a buyer’s lender will order their own appraisal regardless of what BOV or asking price the seller used.
What a BOV Is Not
A BOV is not a guarantee of sale price — it’s a professional estimate based on current market conditions, comparable transactions, and the specific property’s income and physical characteristics. Market conditions can shift between the BOV and an actual closing, and the final sale price is ultimately whatever a willing buyer and seller agree to.
When to Request a BOV
Before deciding whether to sell. A BOV gives you a real number to weigh against your alternatives — refinancing, holding, or a 1031 exchange into a different asset.
After receiving an unsolicited offer. Unsolicited offers are almost always below what a competitive listing process would yield. A BOV, prepared quickly, lets you evaluate an offer against an actual market estimate rather than guessing.
Before executing a 1031 exchange. Knowing your relinquished property’s likely sale value early helps you size your replacement property search correctly from day one. See our 1031 exchange page for how the two processes coordinate.
Periodically, even if you’re not selling. Understanding your property’s current value informs refinancing decisions, estate planning, and portfolio strategy even when a sale isn’t imminent.
How This Fits Into a Listing Engagement
The BOV is step one of the full sales process — pricing strategy, marketing across CoStar/Crexi/LoopNet plus our off-market network, negotiation, and closing all build on the number and strategy established in the BOV.
Frequently Asked Questions
What is a Broker Opinion of Value? A written valuation analysis prepared by a licensed real estate broker, estimating what a commercial property would sell for in the current market, based on income, comparable sales, and replacement cost approaches.
Is a Broker Opinion of Value the same as an appraisal? No. A BOV is prepared by a broker for pricing and listing strategy purposes and is typically free. An appraisal is prepared by a certified appraiser, is required by lenders for financing, and typically has a fee attached.
How much does a Broker Opinion of Value cost? There is no charge to receive a BOV from us as part of a listing conversation.
How long does it take to get a BOV? Typically a matter of days, not weeks — considerably faster than a formal appraisal, which is part of why a BOV is the right tool for quickly evaluating an unsolicited offer or deciding whether to list.
Can I use a BOV to get financing? No. Lenders require a certified appraisal for financing purposes; a BOV is not accepted as a substitute. A BOV is a pricing and decision-making tool for the seller, not a lending document.