What must a Broker's Price Opinion include regarding its nature?

A Broker's Price Opinion (BPO) is fundamentally different from a certified appraisal. It is primarily the broker's opinion regarding the value of a property, based on factors such as comparable sales, market trends, and the broker's own expertise in the area. The inclusion of the statement that it is "an opinion of price and is not a certified appraisal of the market value" clarifies its purpose and limitations.

The distinction is essential because an appraisal is conducted by a licensed appraiser and adheres to stringent standards and regulations. In contrast, a BPO does not require the same level of certification and is not legally recognized as a definitive value assessment. This makes it critical for brokers to communicate to clients and other parties that a BPO is not to be confused with a formal appraisal, thereby ensuring that the expectations of the parties involved are aligned with the nature of the valuation being provided. By explicitly stating its nature as a non-certified opinion, the BPO helps manage potential misconceptions regarding its reliability and use in real estate transactions.