Current Issues & Legislation
Legislative interests affecting Outer Banks REALTORS®
2013 April Insurance Presentation with Willo Kelly!
Final BW12 Sec 205-207
SB 521 – Broker Price Opinions
A major piece of legislation is under consideration in the North Carolina General Assembly and we need your help! Click here to take action.
Under current NC law, a real estate broker is prohibited from providing a client with a Broker Price Opinion (BPO) for fee unless the broker has a “reasonable expectation” of obtaining the listing on that property. North Carolina is currently one of only 5 states that restrict a real estate broker’s ability to perform Broker Price Opinions. SB 521 – Broker Price Opinions - would change that by allowing a broker to provide a BPO under limited circumstances. A BPO typically includes an inspection of the subject property, relevant neighborhood analysis, local and regional market information and trends, and a description of comparable properties and is prepared by a licensed real estate broker with intimate knowledge of their local market. BPOs provide critical information for decision-making and have been widely adopted as a tool in the mortgage industry due to their timeliness, cost effectiveness, and accuracy.
BPOs are commonly used for:
- Fraud check and additional due diligence on a completed appraisal;
- Internal non-lending purposes such as portfolio valuation and review;
- Due diligence of loan portfolios by buyers and sellers in secondary market transactions and to help establish the purchase and sales price of a portfolio; and
- Due diligence and disposition analysis on distressed loans, including short sales, REO sales, and foreclosure avoidance efforts.
Broker Price Opinions are NOT considered a certified appraisal and do not take the place of one. REALTORS® do not propose taking the place of appraisers. In fact, REALTORS and appraisers complement each other’s services and together meet the needs of the marketplace.
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