Texas Real Estate Sales Agent ExamValuation and Market AnalysisMedium
A Texas real estate license holder is engaged by a client to provide an opinion of value for a property. The license holder is not a licensed appraiser. Under what circumstances is it permissible for the license holder to provide this opinion of value?
- AWhen the opinion is for a prospective buyer or seller and is not referred to as an appraisal.
- BOnly if the license holder is a Certified Residential Appraiser.
- CNever, as only licensed appraisers can provide opinions of value in Texas.
- DOnly if the opinion is for a federally related transaction.
Show answer & explanationAnswer & explanation
Correct answer: A. When the opinion is for a prospective buyer or seller and is not referred to as an appraisal.
Texas real estate license holders can provide an opinion of value, such as a Comparative Market Analysis (CMA) or Broker's Price Opinion (BPO), for a prospective buyer or seller client, provided it is not presented as an appraisal and is not for a federally related transaction requiring a licensed appraiser.
Why the other options are wrong
- B. A real estate license holder is distinct from a licensed appraiser. This option describes an appraiser.
- C. This is incorrect. License holders can provide opinions of value under specific conditions.
- D. Federally related transactions explicitly require a licensed appraiser, not a real estate license holder providing an opinion of value.
License Holder Opinion of Value
A real estate license holder in Texas may provide an opinion of value (e.g., CMA, BPO) for a client, but it must not be represented as an appraisal and cannot be for federally related transactions requiring a licensed appraiser.
- Permitted for prospective buyers/sellers.
- Must not be called an 'appraisal'.
- Not for federally related transactions.
Memory trick: A 'C'MA is 'C'ool, but 'A'n 'A'ppraisal is for 'A'ppraisers.