A broker opinion of value (BOV) is a broker's supported price range, built from comparable sales, rents and income. Florida law bars calling it an appraisal. For a commercial real estate loan above $500,000, federal banking rules generally require an appraisal by a state-certified appraiser, with exceptions.
Key takeaways
- A BOV is a broker's price range with the reasoning shown. Florida law bars calling it an appraisal.
- The range is only as good as its inputs. Ask which numbers are verified from documents and which are inferred.
- Use a BOV to decide whether to sell, hold, or lease, and to frame a list price. A lender decides when an appraisal is required.
- Get the BOV before you list. It shows which buyer the price assumes.
What a BOV is
A broker opinion of value is a written opinion of what a property is likely to sell or lease for. It rests on comparable sales, comparable leases, the property's income and expenses, its condition, and current market conditions. The output is a range with the reasoning behind it.
It answers three questions before a property is listed: what could this sell for, who is the likely buyer, and what would change the number. A licensed broker or sales associate prepares it.
BOV and appraisal side by side
| Item | BOV | Appraisal |
|---|---|---|
| Prepared by | A real estate broker or sales associate | A state-certified or licensed appraiser |
| What Florida law says | May not be referred to or construed as an appraisal (s. 475.612) | Appraisal services are provided by certified or licensed appraisers (s. 475.611) |
| Common use | Pricing a listing, and deciding whether to sell, hold, lease, or reposition | Meeting a lender's appraisal requirement |
| Lender use | Cannot stand in for a required appraisal | Required for a federally related commercial real estate transaction above $500,000, with exceptions (12 CFR 34.43) |
| Output | A value range with the reasoning shown | A formal appraisal report |
The same broker can give you a price opinion and still tell you when you need an appraisal. Florida allows a licensed broker or sales associate who is not an appraiser to provide valuation work for compensation, as long as they do not present themselves as a certified or licensed appraiser. A price opinion or opinion of value may not be referred to as an appraisal.
What goes into a BOV
- Comparable sales: similar properties, in the same market, sold recently, adjusted for size, condition, and lease terms.
- Comparable leases: what similar space is renting for and on what terms.
- Income and expenses: rebuilt from leases, trailing 12-month statements, and tax and insurance bills. See net operating income.
- Condition: roof, mechanical systems, paving, and deferred maintenance.
- Land use: zoning, access, utilities, and whether a higher use is allowed.
- Market conditions: financing costs, buyer demand, and how long similar properties take to sell.
I label every input verified or inferred. A verified input traces to a lease, a statement, or a public record. An inferred input is an estimate, and the range moves if it is wrong.
How to read the range
Take a building with $84,000 of NOI. If comparable sales traded between a 6.75% and a 7.50% cap rate, the income approach produces this range:
| Cap rate | Calculation | Indicated value |
|---|---|---|
| 7.50% | $84,000 ÷ 0.0750 | $1,120,000 |
| 7.00% | $84,000 ÷ 0.0700 | $1,200,000 |
| 6.75% | $84,000 ÷ 0.0675 | $1,244,444 |
Illustrative example. Hypothetical numbers picked to show the math. Your numbers will differ.
The BOV reports that as roughly $1.12 million to $1.24 million, then adjusts for condition, lease terms, and the buyer pool. Check two things before you rely on any range. First, where the NOI came from. If the $84,000 comes from a seller's pro forma, treat the range as unverified until the numbers are reconciled to leases and bank deposits. Second, which buyer the range assumes. An investor prices the income, an owner-user prices the space, and a developer prices the land.
When you need an appraisal
The lender decides. Federal banking regulators require an appraisal by a state-certified or licensed appraiser for real estate-related financial transactions unless an exemption applies. Under 12 CFR 34.43, a commercial real estate transaction above $500,000 needs an appraisal by a state-certified appraiser. Exemptions include commercial transactions of $500,000 or less and certain business loans of $1 million or less that do not depend on real estate as the primary source of repayment. Exempt transactions still need an evaluation of the collateral.
Ask your lender what it requires, and when, before you sign a contract with a financing contingency. A BOV can frame the price. It cannot replace a required appraisal.
Questions to ask before you list
- Which input drives most of the range?
- Which inputs are verified, and which are inferred?
- Which buyer does the range assume: investor, owner-user, or developer?
- What would move the range: vacancy, a lease expiration, deferred maintenance, or zoning?
- Does the range cover a sale price, a lease rate, or both?
See preparing a commercial property for sale for the documents that make a BOV firmer, and sell, hold, lease, or reposition for what to do with the answer.
Common questions
What is a BOV in commercial real estate?
A broker opinion of value is a broker's written opinion of a property's likely sale price or value range, based on comparable sales, rents, income, condition, and market conditions. It shows the reasoning and is prepared before a property is listed or a decision is made.
Is a BOV the same as an appraisal?
No. Florida law says a broker's price opinion or opinion of value may not be referred to or construed as an appraisal (s. 475.612). An appraisal comes from a state-certified or licensed appraiser. If a lender requires an appraisal, a BOV cannot replace it.
What do I give a broker to prepare a BOV?
Leases and a rent roll, trailing 12-month income and expenses, property tax and insurance bills, any survey or site plan, repair history, and zoning information. The more documents behind the numbers, the narrower and firmer the range.
Can I list my property at the BOV price?
Use the BOV to frame the price. The market sets the final number through offers and due diligence, so test the range against the buyer you expect and against how long you can wait.
Sources
- Section 475.612, Florida Statutes (a broker's price opinion or opinion of value may not be referred to or construed as an appraisal)
- Section 475.611, Florida Statutes (definitions, including appraisal services)
- 12 CFR 34.43, Appraisals required; transactions requiring a State certified or licensed appraiser, Legal Information Institute
Sources retrieved October 24, 2026. Appraisal thresholds and exemptions are set by federal banking regulators and can change. Ask your lender what it requires.
General information, not legal, tax, accounting, or investment advice. A BOV is an opinion, not an appraisal and not a guarantee of a sale price. Examples marked illustrative use hypothetical numbers.