How to Write a Broker Opinon Letter
Real estate brokers provide broker's price opinions for homeowners wishing to determine the current value of their homes. Although not accepted by mortgage companies as substitutes for residential real estate appraisals, a broker's price opinion is useful for understanding factors contributing to or detracting from a home's value and identifying needed repairs and maintenance for increasing a home's appeal to potential buyers.
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Things You'll Need
- Computer and printer
- Current real estate broker's license
- Information on recent sales of comparable homes
- Camera
- Broker's property inspection form
Instructions
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Inspect the home's interior and exterior and note general and specific features including paint, roof, lawn, sidewalks and driveways. Note the home's approximate age, architectural style, structural features and number of rooms. Evaluate the home's landscaping and additional exterior features such as decks, water features, and outdoor kitchens. Note the height and material used for fencing. Indicate recommended repairs and suggested improvements.
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Specify the location where the home is located. Desirable neighborhoods can add to home value, while nuisance conditions and hazards reduce a home's value. Consider factors such as proximity to schools, shopping and commuter routes. Identify the school district. Desirable school districts can increase home value. Consider existing environmental influences and known future circumstances that may influence home values.
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Compare the home you are evaluating with two or three current listings and recent sales of similar homes in the same neighborhood. Include photos of each home, square footage, number of rooms and lot size. Determine how the subject home compares to the recent sales. Use the information compiled for the subject home and comparable homes for estimating the value of the subject home.
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Direct a broker's opinion letter to the person requesting it. Use professional stationery displaying your contact information. Include to your letter emphasizing that the information given is a best estimate and is not a guarantee of home value or selling price. Sign your broker's opinion letter with your name as it appears on your real estate license, and include your real estate license number and professional title. Include Use forms and procedures required by your employer or affiliate agency for creating broker's price opinions.
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References
Resources
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