Similar to an appraisal, but not used for federally related transactions above $250,000, and exempt from USPAP compliance as stated in Chapter 475, Part II, F.S., a real estate broker/agent produced property valuation includes the minimum standards established in the Interagency Appraisal and Evaluation Guidelines issued by the Office of the Comptroller of the Currency (OCC), the Board of Governors of the Federal Reserve System (FRB), the Federal Deposit Insurance Corporation (FDIC), the Office of Thrift Supervision (OTS), and the National Credit Union Administration (NCUA).
The minimum standards in a property valuation include:
- Identification of the subject property: street address, folio # or assessor’ parcel number (APN), and legal description
- Highest and Best Use analysis
- Property condition and description of the improvements, including an interior/exterior physical inspection
- Current zoning and flood zone designation
- Comparable Sales Data used in the Sales Comparison Method, including MLS, Tax Records, and 3rd party data sources
- Photos of the property and comparable sales/listings
- Local market conditions
- Estimate of market value (as of the date of the evaluation)
- Preparers name, address, and signature
A property valuation can be drafted in a summary report, a more affordable option, or as a narrative (self-contained report) with all of its referenced data sources and supporting documents, included within the report, for a higher fee.
As a former Certified Residential Appraiser with nearly nine years of field experience, licensed in Florida, Georgia, and Texas, I’m well-qualified to provide clients with an expert Property Valuation, Broker Price Opinion (BPO), or Comparative Market Analysis (CMA).
Broker Price Opinion (BPO)
Less formal than the property valuation, the BPO is another type of valuation report that includes detailed information about the subject property’s immediate neighborhood housing conditions and market trends.
The broker price opinion provides a value estimate (probable sales price) within a report that includes:
- local and regional market data
- a neighborhood analysis
- a full description of the subject property
The BPO value is also derived from the Sales Comparison Approach.
Comparative Market Analysis (CMA)
The least formal type of property valuation is often referred to as a CMA, or comparative market analysis. This report is prepared by a licensed real estate agent or broker to determine the most probable selling price of a specific property. These reports do not include regional market analysis; instead, they focus on the immediate local market and are data specific to the subject property’s neighborhood. Our CMA reports include the following data:
- 3 Active Listings and/or Pending Sales
- 3 Expired Listings
- 3 Closed Sales (Sold typically within the past 90 days)
The CMA is drafted in a summary report.
Email your property valuation request to: John@mylrw.com
Thank you for your business!