CMA Policy Now In Appraisers Act

The General Assembly has amended the North Carolina Apprai-
sers Act to define the role of real estate brokers and salespersons in performing comparative market analyses (CMAs).

The policy of the North Carolina Appraisal Board is now stated in the law; namely, that real estate brokers and salespersons may perform CMAs for compensation or other valuable consideration ONLY for their prospective or actual real estate clients or for real property involved in an employee relocation program. They may not perform CMAs for any other purpose-especially lending purposes.

A comparative market analysis is defined as "the analysis of sales of similar recently sold properties in order to derive an indication of the probable sales price of a particiular property by a licensed real estate broker or salesperson." Although the Act does not define the term "broker price opinion (BPO)", a BPO is essentially a CMA if it is based upon recent sales of comparable properties.
 

Practice Tip

When performing a comparative market analysis or broker price opinion for a client or potential client, be sure to:

Document the recent sales of comparable properties upon which you base your analysis.

Identify the results of your analysis as a "probable sales price" only and not the "market value" or an "appraisal".

State in your written report that "This is a comparative market analysis and not an appraisal and should not be used for lending purposes."