Overview of an estimate of value for a commercial real estate property done by a commercial real estate broker. Nathan Bragg, is a broker in Rancho Cucamonga and Ontario California and operates in the East Los Angeles county, San Beranrdino County and Riverside County.

1. WHAT IS A BROKER OPINION OF VALUE?
In Commercial Real Estate when one needs to come up with an estimate
of value for a commercial property, typically the "go to" resources are
experienced Commercial Real Estate Brokers. These estimates are also
know as a "BOV".
Pictures below are of a 30,000 square foot building my team and I evaluated for a
large credit union. Source: Nathan Bragg

2. A well trained Commercial Real Estate Broker
should have the tools, training and experience as
well as access to key market statistics through
various commercial only research databases.
Depending on the size of a commercial building,
type and scope of the valuation analysis, a typical commercial appraisal
on a smaller property can start at over $2,000 and go up rapidly. An
experienced broker can provide the same core data that an appraiser
would use but without the cost.
It is important to understand that a "BOV" is not a
substitute for a professionally prepared commercial
real estate appraisal
Sometimes a BOV is referred to as a "Best Guess", which it is, albeit a
"best guess" based on market data and analysis. An appraiser takes many
more steps and their data must conform to strict guidelines while a BOV
is more of a streamlined field assessment of value. I always let my
clients know the difference and encourage them to use a commercial
MAI certified appraiser for a more precise valuation.
Learn more about MAI Appraiser Designations Here
Who Typically Request a BOV ?
Banks, lenders, CPAs, Estate Attorneys and Property Owners often turn
to experienced Commercial Real Estate Brokers to provide an opinion of

3. value to save time and money. My team typically works with owners
looking to sell their property who are seeking professional guidance to
help them with their decision.
Depending on the broker and extent of the analysis required, the opinion
can be as simple as three pages and get as detailed as a small book
depending on the purpose, property and requirements of the client. Some
brokers will charge a fee depending on the individual situation.
The Process
Our team's process is we will make a site to evaluate the physical
condition of the property, we collect data that has an impact on the value
i.e., income and expenses, tax information, zoning and environmental
data the owner may have.

4. We do a detailed analysis on the property and data collected and we will
compare it to the market. The market analysis will depend on the type of
property, for example an Industrial building is not as sensitive to
population density, traffic counts, household income and walk scores as
a retail center etc., so each market analysis varies.
A detailed BOV can contain a capitalized income analysis, replacement
cost analysis comparable sales analysis, market lease and cap rate
analysis, land costs comparisons , complete portfolio analysis, market
trends, vacancy rate comparisons and more.
It is very important in my opinion to use a Commercial Broker for these
reports with at least 5 years of experience in the industry or have
equivalent experience along with the required Commercial Real Estate
research data.
Nathan Bragg is the Director of the
Commercial Division at the RE/MAX TIME
office in Southern California.
He primarily services the Eastern Los Angeles County
Market as well as parts of Riverside and San Bernardino Counties
(Ontario, Rancho Cucamonga, Fontana, Riverside and More)
specializing in Industrial and Commercial Investment Real Estate
contact Nathan at nathanbragg@remax.net
Each RE/MAX office is individually owned and operated