# Broker Opinion of Value Builder Research

## Purpose

- Supports `skills/brokerage/broker-opinion-of-value-builder.md`
- Intended for U.S. seller-side investment sales brokers preparing a pricing recommendation and marketing range

## U.S.-Only Assumptions

- Focus is a broker-created opinion of value / pricing analysis for commercial investment sales
- This is not an appraisal
- State law and licensing terminology vary, especially around the use of the word "value"

## 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 contents required for opinions of value or price |
| 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 requirements for opinions of value |
| 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 | Texas terminology caution and disclaimer expectations |
| 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 / broker value context and disclaimer boundaries |
| TREC Advisor | TREC | https://www.trec.texas.gov/sites/default/files/AdvisorDec2015.pdf | 2015 | 2026-04-22 | State regulatory guidance | BPO terminology and disclaimer 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 | Broker valuation wording boundaries |
| 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 value opinions and appraisal boundary issues |
| 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 terminology and discipline risk |
| Commercial Real Estate Brokerage Laws and Customs - Pennsylvania | Mette Evans / Muslaw summary | https://www.muslaw.com/wp-content/uploads/TR-laws-customs-10-2024-MEH-WGS-DBB.pdf | 2024-10 | 2026-04-22 | Legal / practice guide | State variation reminder on brokerage tasks |
| Determining the Value of Commercial Real Estate | SIOR | https://www.sior.com/docs/membership-docs/How%20to%20Value%20Comm%20Real%20Estate-%20Willmore.pdf | 2025 | 2026-04-22 | Institutional valuation education | Valuation method framing for commercial real estate |

## Key Findings

- A broker opinion of value must be framed as a **broker pricing opinion**, not an appraisal.
- NAR SOP 11-1 requires the opinion to include:
  - identification of the subject property
  - date prepared
  - defined value or price
  - limiting conditions, purpose, and intended user
  - present or contemplated interests
  - basis for the opinion, including market data
  - a statement that it is not an appraisal when applicable
- State law varies on terminology. Texas-specific guidance is especially strict about casually using the word "value" without proper qualification and disclaimer.
- A useful investment-sales BOV should combine:
  - comparable sales
  - current income and cap-rate logic where relevant
  - replacement / land logic where appropriate
  - marketability and buyer-pool considerations
  - a pricing recommendation for process, not just an abstract value point
- The brokerage deliverable should distinguish:
  - valuation indication
  - recommended ask / guidance pricing
  - likely market-clearing range

## Benchmark and Process Decisions

- The skill should require an explicit **not an appraisal** disclaimer in the output.
- The skill should include a jurisdiction warning when the property is in a state with strong terminology sensitivity.
- Required sections:
  - property identification
  - purpose and intended user
  - limiting conditions
  - valuation approaches used
  - comparable evidence
  - pricing recommendation and process rationale
- It should support asset-type-sensitive methods:
  - income and cap-rate framing for stabilized investments
  - sales comparison across all property types
  - land or replacement logic where income data is weak

## Conflicting Source Resolution

- Ethics sources establish the minimum disclosure and competence baseline.
- State sources take priority over generic brokerage usage where terminology or permitted practice differs.
- Institutional valuation education can support method selection, but it does not override state licensure boundaries.

## Edge Cases and Red Flags

- Broker is asked to present the document as an appraisal
- Property type or geography falls outside the broker's competence and no disclosure is made
- Comparable set is too thin to support a narrow pricing conclusion
- Seller wants a pricing number without sufficient operating or lease data
- Broker attempts to draft legal valuation language beyond standard brokerage disclaimers

## Open Questions

- Whether later packs should include state-specific BOV disclaimer variants
- Whether future versions should add a land-only valuation workflow
- Whether later releases should include buyer-side pricing opinion tools
