# Broker Opinion of Value Guidance Research

## Purpose

- Supports `knowledge/broker-opinion-of-value-guidance.md`
- Intended to create reusable BOV guidance that is compliant, useful, and clearly differentiated from appraisal practice

## U.S.-Only Assumptions

- Focus is U.S. commercial brokerage practice
- The knowledge base guides broker-created pricing opinions for listings and related commercial transaction purposes
- State law variation must be acknowledged

## Source Table

| Source | Publisher | URL | Publish Date | Access Date | Source Type | Notes |
|--------|-----------|-----|--------------|-------------|-------------|-------|
| 2026 Code of Ethics & Standards of Practice | NAR | https://www.nar.realtor/about-nar/governing-documents/code-of-ethics/2026-code-of-ethics-standards-of-practice#article12 | 2026 | 2026-04-22 | Primary industry standard | SOP 11-1 content requirements |
| Code of Ethics and Standards | CCIM Institute | https://www.ccim.com/sites/default/files/2023-11/code-of-ethics-standards-2022%204-17-23%20%281%29.pdf | 2023-11 | 2026-04-22 | Institutional ethics standard | Similar valuation-opinion rules |
| When Talking About "Value", Choose Your Words Carefully | TALCB | https://www.talcb.texas.gov/public/news-articles/when-talking-about-value-choose-your-words-carefully | n.d. | 2026-04-22 | State regulatory guidance | Terminology caution |
| For What It's Worth | Texas Real Estate Research Center | https://trerc.tamu.edu/article/for-what-its-worth/ | n.d. | 2026-04-22 | State-affiliated research | BPO / appraisal boundary context |
| TREC Advisor | TREC | https://www.trec.texas.gov/sites/default/files/AdvisorDec2015.pdf | 2015 | 2026-04-22 | State regulatory guidance | Disclaimer and presentation issues |
| Legal Update I & II | TREC | https://www.trec.texas.gov/sites/default/files/Legal%20Update%20I%20%26%20II%20Edition%2010.0%20-%2001.03.2022.pdf | 2022 | 2026-04-22 | State regulatory guidance | Brokerage value terminology |
| Opinions of Value: Harmless Expression or Unauthorized Appraisal? | SIOR | https://www.sior.com/docs/default-source/profreport/plain-speaking-from-a-lawyer.pdf | 2026-04 | 2026-04-22 | Institutional legal commentary | Brokerage valuation boundaries |
| Unauthorized Practice of Appraisal (The Price is Right) | South Carolina REALTORS | https://screaltors.org/unauthorized-practice-of-appraisal-the-price-is-right/ | 2018 | 2026-04-22 | State association guidance | BOV term caution |
| 99-15 | Georgia Office of the Attorney General | https://law.georgia.gov/opinions/99-15 | 1999 | 2026-04-22 | State legal guidance | BPO is not appraisal context |
| Appraiser or RE broker? How to value commercial RE | Reddit / practitioner discussion | https://www.reddit.com/r/CommercialRealEstate/comments/1fk3bfd | n.d. | 2026-04-22 | Practitioner sentiment | Secondary only; useful for practical difference in market usage |

## Key Findings

- The knowledge base must frame broker opinions of value as **broker pricing analyses with explicit disclaimer language**, not appraisals.
- SOP 11-1 and CCIM ethics standards provide the cleanest common baseline for content and disclosure.
- State law variation is the core operational risk. Texas and other jurisdictions show that:
  - terminology matters
  - disclaimers matter
  - competence and geography matter
- The best reusable guidance is:
  - what a broker should include
  - what a broker should not claim
  - how to present valuation methods without overstating certainty

## Benchmark and Process Decisions

- The knowledge base should require:
  - purpose and intended user
  - limiting conditions
  - contemplated-interest disclosure
  - basis for opinion
  - not-an-appraisal statement
- It should provide method guidance by asset type without pretending to be a valuation textbook.
- It should recommend a cautious approach in states where "BOV" terminology itself can be problematic.

## Conflicting Source Resolution

- Ethics and state guidance outrank practitioner custom when they differ.
- Informal market usage of "BOV" should never override state-specific licensing or appraisal-boundary rules.
- Practitioner sentiment is useful for explaining market expectations, not for defining legal compliance.

## Edge Cases and Red Flags

- Seller uses the broker's pricing opinion for litigation, tax appeals, or lender-underwriting purposes
- Broker presents a BOV-style document without clear purpose, user, and disclaimer
- Property type is too specialized for confident pricing without extra expertise

## Open Questions

- Whether future versions should include state-specific appendix notes
- Whether later releases should separate listing BOVs from buyer-side pricing opinions
- Whether the repo should include reusable disclaimer templates by jurisdiction group
