Both a CMA (competitive market analysis) and a BPO (broker price opinion) offer the same type of information regarding homes and properties. In some states, the terms are used interchangeably. However, in many states, there is a very large difference between these documents. It’s important to understand the differences in these documents, especially if you’re going to work with them as a real estate professional.
What is a BPO?
A BPO, or broker price opinion, is a compilation of information about a property as well as the opinion of a real estate agent as to the value of said property. Many times, a BPO will include information about the home, such as the number of bedrooms and bathrooms, the square footage, the acreage and more. It is typically formulated by a quick look at the property and surrounding properties by agents. In some cases, it involves more in-depth information.
What is a CMA?
A CMA, or comparative market analysis, is similar to a BPO in that it provides an estimated value of the property. However, a CMA is much more focused on comparable properties and estimating a value based on properties that have sold recently. Individuals take into account that information, as well as the state in which the current property is in. The document could be anywhere from a few pages to 50 pages long, and can include current market data.
While some companies require a real estate license for individuals to perform a BPO, most don’t require a license for a CMA. States in which licenses are required to perform a BPO includeWest Virginia,Pennsylvania,Utah,NevadaandMississippi. In these particular states, an individual may be able to perform a CMA without a license whereas they wouldn’t be able to perform a BPO. It should be stated that many companies don’t require proof of licenses when hiring real estate professionals to perform either BPOs or CMAs.
A BPO and CMA will pay real estate professionals about the same amount of money. It can differ depending upon length and information included. The actual payment from a BPO or CMA can be between $50 and $150. Also factored into the price are location and the specific company that hires and the real estate professional. By taking on several of these each week, real estate professionals can obtain a great additional income, especially when the real estate business is slow.
While there are many areas in which unlicensed individuals can perform a BPO, many places will allow CMAs from those without asking for a license. It largely depends upon the company that hires an individual, as well as where the company is located. Both can be great additional incomes for real estate professionals and both should be considered an option.