A BOV is a broker's informal assessment of a property's likely listing price and close range, based on comparable sales and submarket conditions. Unlike an appraisal, it's not regulated.
The BOV is the most important pre-listing document and the most commonly misread. A credible BOV shows specific comparable closed sales, a defensible cap rate derivation, and a realistic close range — not just a peak number.
Beware the BOV designed to win a listing rather than price the building. If the recommended price is materially above what the comps support, that's the broker signaling they want your listing, not that the price is right.
In LA multifamily, the BOV you want is from a broker who has closed in your submarket within the last 12 months with verifiable comparable transactions. Generic "industry averages" or pro forma-based BOVs rarely match what the market will actually pay.
From the Sterman LA Multifamily Glossary — defined the way a broker with $1.41 billion across 254 closed transactions actually uses these terms.
Michael Sterman, Senior Managing Director Investments, Marcus & Millichap.
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