do you know how to fill out the broker price opinion forms?
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For many years, "competitive market analysis" CMA and "letter of opinion" or "broker price opinion" BPO were terms of art used to describe the analysis and opinion used by real estate brokers broker price opinion sample form establishing a listing price. Competitive market analysis was intended to convey the idea that what was being analyzed was the housing market to determine a competitive listing price. Broker price opinion was used to distinguish the work of brokers from that of appraisers.
Eventually, "competitive market analysis" and "letter of opinion" BPO came to be defined in statute. According to ORS Administrative rules have been used to flesh out these statutory definitions. All is thought necessary to distinguish a broker's opinion on "price" from an appraiser's opinion of "value. The federal rule change caused broker price opinion sample form of a legal dust-up between lenders and appraisers that untimely lead to an exception being carved out of the brokers do price opinions and appraisers do value opinion paradigm.
This compromise and the traditional rules that distinguish BPO's from appraisals are now found in a single administrative rule. OAR contains the express legal authorization for a real estate licensee to provide competitive market analysis and letter of opinion in the normal course of their business. The authority, however, broker price opinion sample form expressly limited to broker price opinion sample form "pursuit of a listing, to assist a potential buyer in formulating an offer or to provide a broker's price opinion, weather or not done for a fee" This limitation applies whether the opinion is done for a fee or not.
The rule specifically declares that the term "value" when used in a CMA or letter of opinion is not intended to mean or imply "value" as used in appraisals. If the dictates of OAR are followed, there are few problems.
Broker price opinion sample form the requirements of the rule are not followed, however, the result can be violations of real estate license law. It is, for instance, a violation of ORS A common way in which the limitation placed on the authority to do CMAs and BPOs is to do them for a home owner challenging a property tax assessment or a lawyer in a divorce case or other real property action.
It is not that CMAs and BPOs cannot be used in such context; rather it is that often the agents hired forget they cannot offer opinions of value and must use their CMA and letter of opinion authority only in pursuit of a listing or to aid a buyer in making an offer. A seller who received a letter of opinion in contemplation of selling the property might later use the letter to contest a property tax assessment, but the agent could not provide the letter for the purpose of contesting the property tax assessment.
It is for this reason, that every letter of opinion should be accompanied by a cover letter that explains its purpose. Click here for a sample letter of opinion cover letter. Skip to main content. Search the Risk Management Toolkit: