North Carolina Administrative Code › Title 21 - OCCUPATIONAL LICENSING BOARDS AND COMMISSIONS › Chapter 58 - REAL ESTATE COMMISSION › Subchapter A - REAL ESTATE BROKERS › Section .2200 - BROKER PRICE OPINIONS AND COMPARATIVE MARKET ANALYSES › Section 58A .2202 - STANDARDS

Current through Register Vol. 39, No. 2, July 15, 2024
(a) A broker
				  performing a broker price opinion or comparative market analysis for a fee
				  shall comply with all the requirements in
				  G.S.
				  93A-83 and in this Rule.
(b) A broker shall only accept an assignment
				  to provide a broker price opinion or comparative market analysis for a property
				  if the broker has knowledge of the real estate market, direct access to real
				  estate market sales or leasing data, and brokerage or appraisal experience in
				  the subject property's geographic location.
(c) A broker shall not provide a broker price
				  opinion or comparative market analysis for a property unless the broker can
				  exercise objective, independent judgment free of any influence from any
				  interested party in the performance of his or her analysis of the facts
				  relevant to determination of a probable selling or leasing price.
(d) A broker shall not provide a broker price
				  opinion or comparative market analysis for a property unless the broker has
				  personally inspected the exterior and interior of that property, provided,
				  however, that an inspection of the exterior or interior is not required if this
				  is waived in writing by the party for whom the opinion or analysis is being
				  performed.
(e) When developing a
				  broker price opinion or comparative market analysis for a property or interest
				  therein, a broker shall utilize methodology such as analysis of sales or income
				  of sold or leased properties comparable to the subject property or
				  capitalization as is appropriate for the assignment and type of subject
				  property.
(f) When analyzing sales
				  or income of properties comparable to the property that is the subject of a
				  broker price opinion or comparative market analysis assignment, a broker shall
				  comply with the following standards:
(1) The
				  broker shall select from reliable information sources a minimum of three sold
				  or leased comparable properties for use in his or her analysis that are similar
				  to the subject property with regard to characteristics such as property type,
				  use, location, age, size, design, physical features, amenities, utility,
				  property condition and conditions of sale. The comparable properties selected
				  shall reflect the prevailing factors or market conditions influencing the sale
				  or lease prices of similar properties in the subject property's local market;
				  and
(2) The broker shall make
				  adjustments to the selling or leasing price of selected comparable properties
				  for differences between the characteristics of the comparable properties and
				  the subject property as necessary to produce a credible estimate of the
				  probable selling or leasing price. Adjustments shall be considered for
				  differences in property characteristics such as location, age, size, design,
				  physical features, amenities, utility, condition, economic or functional
				  obsolescence and conditions of sale. The amounts of adjustments shall reflect
				  the values that the local real estate market places on the differences in the
				  characteristics in question.