Which term describes a less expensive alternative to valuating properties, often used by lenders?

The term that describes a less expensive alternative to valuating properties, often used by lenders, is the Broker's Price Opinion (BPO). A BPO is typically performed by a licensed real estate broker or agent who provides an estimate of a property's value based on a review of comparable properties and current market conditions. It offers lenders a quicker and cheaper solution compared to formal appraisals, which can be more thorough and costly.

Lenders often seek BPOs when they need a property valuation for purposes like refinancing, obtaining a line of credit, or assessing the property value for a short sale. While still credible, a BPO does not carry the same weight as a full appraisal, and it is primarily used for informational purposes rather than formal transactions. This makes it a practical choice for lenders looking to minimize costs while still gaining insight into a property's market value.