A broker opinion of value, or BOV, is a commercial broker’s written estimate of what a property would likely sell for in today’s market. Owners use a BOV to decide whether to sell, to set an asking price, or to plan a refinance or estate transfer. In Sarasota, most commercial brokers provide a BOV at no cost to owners who are considering a sale.
What Goes Into a BOV
Property review: size, age, condition, zoning, and site features
Income analysis: rent roll, lease terms, and net operating income
Comparable sales: recent sales of similar Sarasota properties
Market cap rates: what buyers are paying for similar income streams
Lease comparables: current market rents for similar space
Pricing strategy: a recommended asking price and the likely buyer pool
The Three Valuation Approaches
A thorough BOV usually leans on one or more of the same approaches appraisers use.
Approach | How it works | Best for |
|---|---|---|
Income approach | Divides net operating income by a market cap rate | Leased investment property |
Sales comparison | Compares recent sales of similar properties, often per square foot | Owner-user buildings and land |
Cost approach | Estimates land value plus the cost to rebuild, less depreciation | Newer or special-use buildings |
BOV vs Appraisal
A BOV and an appraisal both estimate value, but they serve different purposes. An appraisal is a formal report by a state-certified appraiser and is required by lenders, courts, and the IRS. A BOV is a broker’s market opinion, built to guide a sale.
Feature | BOV | Appraisal |
|---|---|---|
Prepared by | Licensed real estate broker or agent | State-certified appraiser |
Typical cost | Often free | Often several thousand dollars |
Typical turnaround | A few days to two weeks | Several weeks |
Accepted by lenders | No | Yes |
Focus | Likely sale price and marketing strategy | Defensible market value |
How a BOV Turns Income Into Value
For a leased property, the income approach often drives the opinion. This illustrative example shows how the value of a property with $300,000 in NOI changes across a range of cap rates.
Cap rate | Indicated value | Chart |
|---|---|---|
6.5% | $4.62 million | ██████████████████ |
7.0% | $4.29 million | █████████████████ |
7.5% | $4.00 million | ████████████████ |
8.0% | $3.75 million | ███████████████ |
Each half-point change in the cap rate moves the value by $250,000 to $330,000 in this example. That is why a good BOV explains which cap rate it uses and why.
How to Get the Most Accurate BOV
Share a current rent roll and copies of all leases
Provide two to three years of operating statements and the latest tax and insurance bills
List recent improvements, such as a new roof, HVAC, or parking lot
Note any known issues, like deferred maintenance or upcoming lease expirations
Explain your goals, whether that is a quick sale, top price, or a 1031 exchange
Frequently Asked Questions
Is a BOV the same as a CMA?
They are similar. A comparative market analysis, or CMA, is the term used most often in residential real estate. A BOV is the commercial version and usually includes an income analysis as well as comparable sales.
Can I use a BOV to get a loan?
No. Lenders require a formal appraisal. A BOV is a planning tool that helps you decide whether and how to sell.
How often should I get a BOV?
Many owners request one every year or two, or whenever the market shifts, a major lease is signed, or they start thinking about selling. It is a simple way to track your property’s value over time.
If you want to know what your property is worth today, request a free BOV or call Eric Barnes at 941-207-9707.
For property owners
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About the author: Eric Barnes
Eric Barnes | Commercial Advisor | 941-207-9707
Michael Saunders & Company | MSC Commercial | Sarasota, Florida
Florida License SL3600406 | GRI | RSPS
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