Real estate license holders cannot use the term appraised value unless they are referring to the value of a property as determined by an appraiser.
Fact. 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.”
Agents and brokers can do bpo’s
Sure. best if the Broker includes the USPAP disclaimer mentioned in the article….
“Only an appraiser can determine a property’s value, according to TREC.” “Real estate license holders can offer an …. estimated worth”. I respectfully ask, what is the difference between “value” and “worth” please? Wouldn’t that be helpful to state?
I would agree that the term “worth” has a meaing that refers to “value”. An amenity may have a “worth” or “value” to a consumer in a specific marketplace, yet not have that same “worth/value” in another marketplace.
Appraisers do not determine property values; they estimate property values. The market determines property values.
Exactly. And often times, an experienced agent in a market will be more familiar with “worth” (not value!) than some licensed appraisers.
Just an FYI: The Uniform Standards of Professional Appraisal Practice (USPSP) removed the word “estimate” from its document in 1999. Appraisers render an opinion of value…they no longer render an estimate of value.
I’ve always been curious how an appraiser who is also a licensed Realtor can perform an appraisal on a property they are listing. In my way of thinking, that’s a conflict of interest. But no-one’s ever brought it up, so what do I know?
Tom – If a Licensed/Certified Appraiser is also a Licensed Agent/Broker, that person cannot act as an appraiser AND an agent on the same property. You are correct – that is a conflict of interest. USPAP is very specific regarding those that carry both licenses. Since USPAP is the minimum standards for appraisal practice, it requires dual licened persons to be transparent that both licenses are held and which one that person is using. They can only use one.
Amen!!! As an Appraiser, it makes me crazy when RE license holders use incorrect terms.
I hear a radio commercial quite often for Orchard.com that says they give you an appraised value of your home. Not cool. I’m always curious how they get away with it.
This is probably to attempt to punish the wholesalers who tell customers a remodeled house is going to be worth so much more after they buy it in its trashed condition, then fix it up, then broadcast that new value. It’s about time somebody did something about that.
except most wholesalers aren’t realtors so they don’t have to abide by our rules