Accurate property valuation is crucial in the fast-evolving world of healthcare real estate. Whether you’re a medical group considering expansion, a private equity firm evaluating an urgent care network, or a physician-owner preparing to sell a facility, knowing your property’s true worth is essential. One commonly used tool is the Broker Opinion of Value (BOV) a market-informed, professional estimate provided by experienced brokers.
In this blog, we’ll explore what a BOV is, how it compares to formal real estate valuation methods, and why it’s especially relevant for healthcare and medical property owners.
What Is a Broker Opinion of Value?
A Broker Opinion of Value is a broker-prepared estimate of a medical or healthcare property’s worth based on market analysis, local data, and industry experience. Unlike a formal appraisal, a BOV is faster, more cost-effective, and ideal for strategic planning in healthcare real estate services.
For medical facilities such as ambulatory surgery centers (ASCs), medical office buildings (MOBs), diagnostic imaging centers, or specialty clinics, a BOV can offer a clear snapshot of current market value without the complexity of a full appraisal.
What a BOV Includes in Healthcare Valuation
Healthcare properties often differ from traditional commercial buildings in tenant usage, build-out complexity, and compliance requirements. A comprehensive BOV includes:
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A full property assessment of the healthcare facility
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Lease and occupancy review, especially relevant for physician-tenanted spaces
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Comparable sales and leases of other medical properties
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Local and national market analysis
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Application of appropriate valuation methods
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A summarized valuation report with an estimated value range
This information gives healthcare property stakeholders the insight needed to make data-backed decisions quickly.
Why BOVs Are Popular in Healthcare Real Estate
BOVs are commonly used by healthcare investors, developers, and physician-owners for several strategic purposes:
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Preparing to sell a medical facility
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Estimating value for partnerships, mergers, or acquisitions
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Repositioning or refinancing properties
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Assessing portfolios for investor presentations
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Determining fair market rent for lease negotiations
In many cases, a BOV is the first step before pursuing a full property appraisal or bringing the property to market.
Valuation Methods Used in Healthcare BOVs
Brokers typically use one or more of the following valuation methods for healthcare real estate:
1. Sales Comparison Approach
This method compares your property to other recently sold healthcare facilities, adjusting for differences in location, size, medical specialization, and tenant mix.
2. Income Approach
Particularly important for leased medical offices and multi-tenant healthcare campuses, this method evaluates the income generated (rent rolls, escalation clauses) and applies market-based capitalization rates.
3. Cost Approach
Used less frequently, this calculates the cost to rebuild a facility minus depreciation. It can be useful for highly customized buildings, like outpatient surgical centers or diagnostic labs.
Unique Considerations in Healthcare Property Valuation
Healthcare real estate presents distinct valuation challenges and opportunities, such as:
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Long-term leases with creditworthy tenants (health systems or physician groups)
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Specialized build-outs like surgical suites, imaging rooms, and radiation shielding
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Regulatory compliance, ADA accessibility, and parking requirements
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Tenant improvements with high medical infrastructure costs
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Reimbursement models and referral patterns affecting location desirability
A generalist valuation may miss these nuances—underscoring the value of a healthcare-focused BOV.
Limitations of a BOV
While a BOV is a valuable decision-making tool, it’s important to understand its limitations:
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It lacks legal standing for financing or estate settlements
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It is not prepared under regulated valuation standards
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Results can vary depending on broker expertise or data access
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It may not reflect hidden facility issues or off-market influences
In high-stakes situations—such as litigation, loan applications, or IRS reporting—a full property appraisal is typically required.
How Strategic Medical Brokers Delivers Accurate Healthcare BOVs
At Strategic Medical Brokers, we specialize in valuation services for healthcare real estate. Our BOVs are tailored specifically to medical properties, incorporating:
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Up-to-date market analysis and real-time comps
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In-depth lease review and revenue projections
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Understanding of physician-owned vs. investor-owned property dynamics
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Experience in valuing surgery centers, MOBs, urgent care centers, and more
Whether you’re building, refinancing, or selling, we help you uncover your medical property’s full market potential with clear, data-backed valuation reports.
When to Use a BOV in Healthcare Real Estate
Here’s when a BOV makes strategic sense:
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Selling or acquiring a healthcare property
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Evaluating fair market value for physician buy-ins or buy-outs
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Reviewing your real estate portfolio’s performance
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Presenting to investors or joint venture partners
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Assessing market positioning for redevelopment or lease-up
With healthcare real estate becoming an increasingly institutionalized asset class, a BOV provides rapid, reliable insight to stay ahead of the market.
Final Thoughts
A Broker Opinion of Value is a critical tool for anyone involved in healthcare real estate. It offers a practical, cost-effective way to understand where your medical property stands in today’s market—without committing to the cost and formality of a full appraisal.
At Strategic Medical Brokers, we combine healthcare expertise with data-driven analysis to help you unlock the full value of your facility. From urgent care centers to medical office buildings, our BOVs support smarter decisions across the healthcare real estate lifecycle.
