In preparing a broker price opinion, what should a broker follow?

In preparing a broker price opinion (BPO), following the Uniform Standards of Professional Appraisal Practice (USPAP) is essential because it provides the ethical and performance standards for real estate appraisers and professionals. USPAP outlines the necessary guidelines that ensure a broker's opinion is conducted with integrity, objectivity, and competence, thereby maintaining the credibility of the valuation process.

These standards are critical for protecting both the lender's and the client's interests, as they ensure that the broker's opinions of value are derived from reliable and verifiable data, adhere to industry practices, and follow established ethical guidelines. By adhering to USPAP, brokers can offer BPOs that are well-supported and consistent with professional standards across the industry. This instills confidence in the valuation provided and minimizes the risk of disputes related to the opinion's accuracy and reliability.

While the Code of Ethics promotes professionalism, and lender expectations influence the BPO's context, it is USPAP that specifically details the methodological and ethical approach necessary for creating a credible and defensible broker price opinion.