Broker price opinion bill released

TRENTON – A bill enabling real estate licensees to prepare broker price opinions and comparative market analyses was released by the Senate Commerce Committee.

The bill, S2551, was strongly supported by the New Jersey Association of Realtors (NJAR), which said  it was necessary to restore a longstanding practice.

Jarred Grasso, CEO of NJAR, said the state Board of Real Estate Appraisers issued an advisory opinion in November, stating that real estate licensees could not provide broker price opnions and comparative market analyses, which, Grasso said, “flies in the face” of accepted practices.

Broker price opinions refer to estimates prepared by a real estate broker or salesperson that details the probable selling price of a particular piece of real property. The information also includes details about the property’s condition, market, and neighborhood, and information on comparable sales, but does not include an automated valuation model.

While the state “Real Estate Appraisers Act” mandates that appraisals of various real properties situated in New Jersey be performed by state licensed or certified appraisers, nothing in the statute precludes real estate brokers from providing the service, states the bill, sponsored by Sen. Jeff Van Drew (D-1) of Dennis.

But the New Jersey Appraisal Institute opposed the bill, saying the service provided by real estate brokers is likely to be partial and not intended to be the for the benefit of the client. The institute described the work it does as impartial.

The bill was released.

Broker price opinion bill released