No, unless they are referring to the value of a property as determined by an appraiser. Only an appraiser can determine a property’s value, according to TREC. Real estate license holders cannot perform an appraisal of or provide an opinion of value for real property unless they are licensed appraisers. License holders may not use the term value when referring to their own market analysis.
Real estate license holders can offer an estimated sale price, listing price, or estimated worth. Sales agents must do so in their sponsoring broker’s name. Any price opinion, market analysis, or estimate must include this written statement verbatim and in at least 12-point font: “This represents an estimated sale price for this property. It is not the same as the opinion of value in an appraisal developed by a licensed appraiser under the Uniform Standards of Professional Appraisal Practice.”
” Real estate license holders cannot perform an appraisal of or provide an opinion of value for real property unless they are licensed appraisers.” Reading this statement, it reads as if we cannot do a Broker Price Opinion (BPO). Or is it stating that a licensed salesperson cannot unless it is done in the Broker’s name?
i am fairly certain that we can provide an opinion of value… TAR has details on that and the language limitations/requirements… we can do BPO’s but as anything we do it is always “in the Brokers name”
You can provide your opinion of sales price, but not of value, unless you are an appraiser. That is why it is called a Brokers Price Opinion and not a Brokers Value Opinion.
The second paragraph seems pretty clear:Real estate license holders can offer an estimated sale price, listing price, or estimated worth. Sales agents must do so in their sponsoring broker’s name. Any price opinion, market analysis, or estimate must include this written statement verbatim and in at least 12-point font: “This represents an estimated sale price for this property. It is not the same as the opinion of value in an appraisal developed by a licensed appraiser under the Uniform Standards of Professional Appraisal Practice.”
Hi Michael, but what if you have a new actual Appraisal that you can now load up to the MLS? Then, it’s an actual Appraiser’s report, so in that case can we not state in the Description “New Appraiser’s Report in Transaction Desk — Appraised at $968,000.” Can we do that?
Question? – What and How may we describe the valuation given by the local appraisal district for the property? Do we still call that the appraisal district’s view opinion of value?
It is an assessed value from the appraisal district. The value they have assigned through the mass appraisal process to assess property taxes.
This subject has a lot of subsets. There is an article in a Texas Realtors magazine from August 2019, on page 12 with more information. https://www.texasrealestate.com/wp-content/uploads/TexasRealtor0819.pdf
Notably, there are additional language and disclosure requirements “If you aren’t pursuing a listing or assisting a buyer with a purchase offer”. This subject could use a flow chart and further clarification. Are property managers supposed to provide required language and save for 4 years when advising clients on rents?
I get the gist of “don’t pretend to be an appraiser”, but how do I answer the question of, “what is the difference between an “opinion of value” (which I can’t do according to this article) and an “estimated worth” (which I can do according to this article)?
All you have to do is explain that an appraiser is the only one licensed in the state of Texas to provide an opinion of value. But that you can provide an estimate of worth based on the sales you are comparing the property to. You can’t get a loan with an estimate of worth.
Its interesting because I have been doing BPO work for well over 30+ years and when i put the statement that you said we must have the requester of the BPO sends it back and ask that i remove it from the report. Plus more times the property sells closer to my opinion of the value than that of the appraiser who doesn’t sell real estate they are simply giving an opinion of the value as i am and i understand they are licensed and so am i as a Texas Realtor. by the way the BPO business is huge… Read more »
Who.do you do boo’ s for?
I am an appraiser, and I ” value” real estate every day of my life, but I do not sell real estate. I would never come and tell you how to market or list, or sell that property, that is not my expertise. You do not have to sell real estate to be able to value real estate. The opinion we appraisers provide, is based on market evidence. Using the very sales, agents sell to determine the market value for another piece of real estate. I am always at a loss as to why it is us against them when… Read more »
As a broker, I can give my opinion (BPO). But, we can say also quote appraised values from appraisal districts which are very often completely wrong. I have had clients that insisted on having their listing appraised and it was almost always a good bit lower than my suggested list price. However, I have suspiciously noticed that almost EVERY home I have sold the appraised value was just a little over our negotiated price. I don’t have a lot of trust or respect for USPAP. For the most part, they are just rubber stampers. The most valuable part of their… Read more »
There are bad appraisers out there, just like any profession, but don’ t throw us all into the same boat. USPAP is an ethical as well as an appraisal standard that governs what must be in an appraisal to be considered an appraisal, not sure what the ” rubber stampers” comment even means, USPAP has nothing to do with value. It is a crazy time as far as prices and all, what an honor to be in the real estate business in Texas! But, we are all in this together, trying to accomplish the same thing. Helping someone purchase a… Read more »
What is the recourse When appraisers do not use the accurate comps or areas and are not willing to adjust. There is no standard on appraiser quality of analysis. It is random, some lenders are waiving appraiser, some do not? How is TAR monitoring the quality of appraisers, Education of appraiser? This really affects home owners both for selling property or refinance affecting PMI= thousands of $$. Some lenders waive appraisers if home owner already met 20% down payments, but some other lenders do not? There is no uniform standard?