Arkansas Real Estate Practice Exam

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What does the disclaimer in a broker price opinion state?

That it serves as a legal document
That it is an appraisal of the market value of the property
That it is not an appraisal of the market value and should not be considered as one
That the opinion guarantees the sale of the property

The correct answer is: That it is not an appraisal of the market value and should not be considered as one

A broker price opinion is not the same as an appraisal and should not be considered as one. While an appraisal is a comprehensive and detailed report conducted by a licensed appraiser, a broker price opinion is an estimated value of a property provided by a real estate broker or agent. This opinion is based on their knowledge of the local market and recent sales of similar properties. It is important to understand the distinction between a broker price opinion and an appraisal, as using a broker price opinion as a substitute for an appraisal can lead to inaccurate valuations. The disclaimer in a broker price opinion clarifies this difference and reminds the recipient not to rely on it as an appraisal.