What is the key difference between an "appraisal" and a "broker price opinion"?

The key difference between an appraisal and a broker price opinion indeed lies in the formality of the evaluation process and the qualifications of the individuals conducting them. An appraisal is a comprehensive and formal assessment of a property's value conducted by a licensed appraiser, who must adhere to strict standards set by regulatory bodies. This process typically involves thorough research, analysis of comparable properties, and consideration of various factors affecting the property’s value.

In contrast, a broker price opinion is an informal assessment performed by a real estate broker. While brokers have significant market knowledge, they typically do not have the same level of training or regulatory oversight as licensed appraisers. A broker price opinion can be quicker and less costly but is generally used to provide an estimate of value for specific situations, such as determining a listing price or assessing a property for a short sale.

The distinction in formality and regulation is crucial in understanding the varying purposes and reliability of each method in real estate valuation.