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

[Aamir V.]

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!

[James Storey]

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