What does a broker opinion of value (BOV) look like?

What does a broker opinion of value (BOV) look like?

Investor · Houston, TX · Member since 2018 · 25 posts · 5 votes

I was listening to the CRE Fast Five podcast and heard that it's a good idea to get a broker opinion of value every year.

Is that really true? Do you get one from multiple brokers?

Most importantly what do they look like? Is it just a comp report from CoStar?

I have a strip center in Texas we are thinking about and wonder if this is a typical first step to feel out good broker candidates.

Thanks for the thoughts!

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Real Estate Agent · Indianapolis, IN · Member since 2020 · 103 posts · 112 votes
4y

Hey Aamir,

First off, all broker opinion of values look different as they all have their own style. And also, some include comps and capital market assumptions for cap rate based on market setiments which can come from costar to. We send a BOV to all our client building owners every year free of charge and we also collect data from local appraisers to build our own comp records. Data is king in this field and the broker with the best data wins.

James Storey, CCIM

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  • Real Estate Agent · Indianapolis, IN · Member since 2020 · 103 posts · 112 votes
    4y

    Hey Aamir,

    First off, all broker opinion of values look different as they all have their own style. And also, some include comps and capital market assumptions for cap rate based on market setiments which can come from costar to. We send a BOV to all our client building owners every year free of charge and we also collect data from local appraisers to build our own comp records. Data is king in this field and the broker with the best data wins.

    James Storey, CCIM

  • Michael K GallagherBusiness Member
    Real Estate Agent · Columbus OH · Member since 2018 · 1k+ posts · 1k+ votes
    4y

    @James Storey if only life worked in the same way..."the best data wins", wouldn't that be wonderful.  Thank you for sharing such an actionable tip. 

  • Ronald RohdePro Member
    Attorney · Dallas, TX · Member since 2016 · 5k+ posts · 2k+ votes
    4y

    I think its pretty well described. You can ask a broker for a sample or a redacted version. They may be more willing if you tell them you're considering selling at the right price too!

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