Broker Price Opinions

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 sales agent 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 sales agent.

BPOs and CMAs are not appraisals. Appraisals may only be completed by someone who is licensed or certified as an appraiser. Therefore, TREC rules require that BPOs and CMAs contain the following statement verbatim 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."

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.”