A Commercial Broker Price Opinion (BPO) is an analysis of properties that are currently for sale and/or have recently sold in the same submarket or geographic region as a specific Subject Property. The analysis includes property characteristics like zoning, city utility status, location with respect to other residential and commercial development, status of city streets, and many other factors. Its purpose is to establish Fair Market Value (FMV) based on past sales, pending sales and property recently listed on the market. A Commercial BPO is a “here-and-now” snapshot of the market based on the most recent data available. However, the market is constantly changing; new listings, pending and closed sales, price reductions, and expired listings can all impact fair market value in a short period of time and make the BPO obsolete. As a result, Commercial BPOs should be considered a useful tool for determining FMV but should not be considered a substitute for the skill and expertise of a CRE professional. A Commercial BPO is not an appraisal. Licensed CRE professionals generate BPOs to the best of their ability in order to provide each client with the most current market data available. However, in generating a Commercial BPO, a CRE agent/broker will NOT follow the guidelines for the development of an appraisal/analysis as specified in the Uniform Standards of Professional Appraisal Practice of the Appraisal Foundation. In other words, a Commercial BPO is NOT a Commercial Appraisal and should not be treated as such.