Real Estate Licensees/Brokerages ALWAYS do these things when performing BPO and CMA.
Always use the term PRICE.
Never use the term VALUE.
LLR Appraisal Board makes a large differentiation between these two similar words. According to LLR Appraisers Board: Appraisers use VALUE. Real estate licensees/brokerages use PRICE.
One way to remember this is that BPO stands for Broker PRICE Opinion. Real estate brokerages/licensees perform BPO’s.
Always and often provide the underlined words in the SC appraisal law to the requesting party (one idea is to always include this in the BPO/CMA along with the words THIS IS NOT AN APPRAISAL. THIS IS A BPO/CMA):
SC Code Section 40-60-30:
However, nothing in this chapter (the appraisal license law) may be construed to apply to:
1) A real estate licensee licensed in accordance with Chapter 57, Title 40 who performs a market analysis or gives an opinion as to the price of real estate on the condition that the market analysis or opinion is not referred to as an appraisal. Before performing a market analysis, the real estate licensee must disclose to the requesting party: "This market analysis may not be used for the purposes of obtaining financing in a federally related transaction".
Posted by: Byron King on 1/8/21 (This information is only accurate as of 1/8/21. You must contact SCR for updates and changes to this information after 1/8/21 as laws and regulations may change over time. SCR 803-772-5206 or email info or byron at screaltors.org)