Are you allowed to charge for a broker price opinion?
05/08/2015 | Author: Editorial Staff
Can I charge a fee to provide a broker price opinion or comparative market analysis to an owner, buyer, or lender?
Yes. The Real Estate License Act and TREC rules permit a broker to charge a fee for providing a broker price opinion (BPO) or a comparative market analysis (CMA). A salesperson may provide a BPO or CMA as well, but they must be submitted in a broker's name. The broker is responsible for a BPO or CMA submitted by a salesperson.
BPOs and CMAs are not appraisals. Appraisals may only be completed by someone who is licensed or certified as an appraiser. TREC rules require BPOs and CMAs to contain certain language to make this clear. BPOs and CMAs must contain the following statement verbatim:
"THIS IS A BROKER PRICE OPINION OR COMPARATIVE MARKET ANALYSIS AND SHOULD NOT BE CONSIDERED AN APPRAISAL OR OPINION OF VALUE. In making any decision that relies upon my work, you should know that I have not followed the guidelines for development of an appraisal or analysis contained in the Uniform Standards of Professional Appraisal Practice of the Appraisal Foundation."
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