Broker Price Opinions, also known as Comparative Market Analyses are a key tool for REALTORS® when determining a price to list a home at. So, when the right to perform BPOs and CMAs came under fire in recent years, NJ REALTORS® stepped up to protect members’ right to do their jobs.
While BPOs and CMAs have always been recognized as tools for REALTORS®, legislation was introduced declaring that BPOs and CMAs are identical documents to each other and permits real estate licensees to prepare them with certain provisions. Two bills unanimously passed the Senate and Assembly, but were pocket vetoed by Gov. Christie, twice.
Despite the pocket veto, REALTORS® are still able to prepare BPOs and CMAs, as detailed in a 2013 advisory released by the New Jersey Real Estate Commission.
The memo states:
“A BPO is defined in federal law as “an estimate prepared by a real estate broker, agent or sales person that details the probable selling price of a particular piece of real estate property and provides a varying level of detail about the property’s condition, market and neighborhood, and information on comparable sales, but does not included an automated valuation model….”
“The Commission rules, however, do refer to a “comparative market study or analysis” (“CMA”), which is an estimate of the value of real property similar to a BPO. The Commission considers the term CMA as used in its rules to also encompass BPOs.”