To prepare a broker opinion of value, gather the property's facts and income, select recent closed sales of similar properties, adjust each one for stated differences, check the result against the income capitalized at a market cap rate, reconcile the two into a range, and turn the range into a pricing recommendation: a guide price for marketing and the price you expect the property to trade at. A BOV that shows each of those steps wins listings and holds up when a buyer's analyst checks it.
Written by the Titleman team with AI assistance (Claude). Reviewed by Titleman's SEO/GEO review desk (AI-assisted, not independent of Titleman) before it went live. Links checked and page updated 14 October 2026.
A BOV is a broker's opinion for a pricing decision, not an appraisal. What it is and how it differs from an appraisal are covered in what is a broker opinion of value and BOV vs appraisal; this page is about how to build one.
The steps in one list
A defensible BOV is the same seven steps every time, whatever the property type.
- Collect the property facts: size, units, year built, condition, zoning.
- Collect the income: rent roll, trailing twelve months of operating statements.
- Select three to six closed sales in the same submarket.
- Adjust each sale for the differences that matter, and write the adjustment down.
- Capitalize the income at a market cap rate as a cross-check.
- Reconcile the two approaches into a range and a central opinion.
- Write the pricing recommendation and the marketing logic behind it.
What you need before you start
The documents decide how much of the BOV rests on facts and how much on assumptions, so ask the owner for them in the first meeting.
- The rent roll and the T-12. Without them the income approach rests on market rent guesses. See how to read a rent roll and what a T-12 is.
- The property record. Building size, unit count, year built, lot and zoning.
- Recent sales in the submarket. Closed, not listed; with the date, the price and the size of each.
- Capital work done or needed. A new roof or deferred maintenance moves the adjustments.
Selecting and adjusting comparable sales
A comparable sale is useful only when its adjustment can be stated in one line. Prefer closed sales over listings, the same submarket over the same metro, and recent over old. Then adjust each sale for age and condition, size, location, unit mix and the date of sale, and show each adjustment instead of folding it into a final number. The general rules for a comparable set are in what comps are; the method itself is the sales comparison approach.
Set aside or adjust heavily: sales between related parties, portfolio sales with an allocated price, distressed sales, and any sale of the subject property itself under another name.
Checking the value against the income
The income check catches the comp set that drifted away from what the building earns. Build the net operating income from the rent roll and the T-12, then divide by a cap rate taken from recent sales of similar buildings (capitalization rate). If the income value and the comp value are far apart, find out why before you write a number: the comps may be newer, or the rents may be below market.
A worked example (illustrative figures)
None of these figures describes a real property or a real market. They show the arithmetic, and every number follows from the ones before it.
The subject is a 24-unit apartment building. Four closed sales in the submarket:
| Sale | Price per unit | Adjustment | Adjusted per unit |
|---|---|---|---|
| A | 182,000 | +5% (older, worse condition) | 191,100 |
| B | 195,000 | −3% (larger units) | 189,150 |
| C | 176,000 | +6% (weaker location) | 186,560 |
| D | 205,000 | −6% (renovated) | 192,700 |
Sales comparison. The adjusted sales run from 186,560 to 192,700 dollars per unit, about 4.48 to 4.62 million dollars for 24 units; the average, 189,878 per unit, gives about 4.56 million.
Income check. In-place rent averages 1,650 dollars a month: 475,200 dollars a year. Less 5 percent vacancy (23,760) plus 12,000 of other income gives effective gross income of 463,440. Operating expenses at 42 percent of that (194,645) leave an NOI of 268,795. At a 5.75 percent cap rate that is about 4.67 million; at 6.00 percent about 4.48 million.
Reconciled. Both approaches land between about 4.48 and 4.67 million, and the comps centre on 4.56 million. A defensible opinion is 4.50 to 4.62 million, central 4.56 million.
Pricing recommendation. Guide the property at 4.65 million, just above the range, to leave room to negotiate, and tell the owner to expect 4.50 to 4.62 million. Writing both numbers down, with the gap explained, is what keeps the listing from being won on a price it cannot reach.
Mistakes that cost the listing or the deal
Most weak BOVs fail in one of a few predictable ways.
- Pricing to win the listing. A number above the evidence wins the meeting and loses months on the market.
- Listings used as comps. An asking price is a hope, not evidence.
- Adjustments hidden in the final number. A buyer's analyst will redo them.
- No income check. A comp-only value can sit far from what the building earns.
- One number where the evidence supports only a range. Below three solid sales, give a range and say why.
For bank lending, the agencies' Appraisal and Evaluation Guidelines describe what an appraisal or an evaluation must contain; a BOV is neither, and the general practice of valuation is summarized under real estate appraisal.
How long it takes, and where Titleman fits
By hand, most of the time on a BOV goes into finding and checking the sales. Titleman's BOV prices one address or a list of up to a hundred in one run. Attach the rent roll, the T-12 or the OM and the price is argued from those numbers; each address returns a priced row with the reasoning, a PDF report and the workbook. A row with too little evidence says so and gives a range instead of a point. The BOV guide records a median of 20 minutes per run and a 90th percentile of 44, and a longer list takes proportionally longer; a single defended opinion on one property takes longer, as explained in how long a BOV takes. It is a broker's working opinion, not an appraisal.
FAQ
How do you prepare a broker opinion of value?
Gather the property facts and its income, pick recent closed sales of similar properties, adjust each one for the differences that matter and state the adjustment, check the result against the income capitalized at a market cap rate, reconcile the two into a range, and turn the range into a pricing recommendation: an asking or guide price and the price you expect it to trade at.
How many comparable sales does a BOV need?
There is no fixed number, but three to six closed sales in the same submarket is the usual working set. With fewer than three, present a range rather than a single point and say why the evidence is thin.
What is the difference between the asking price and the BOV value?
The BOV value is the price you expect the property to trade at, as a range. The asking or guide price is a marketing decision set on top of it, usually at or a little above the top of the range, to leave room for negotiation. A BOV should show both and the reasoning between them.
Can a BOV replace an appraisal?
No. A BOV is a broker's opinion for a pricing decision. Where a lender or a legal process requires an appraisal, only a licensed appraiser can provide it.