How to Write a Broker an Opinion Letter

Brokers provide specific information in a broker opinion letter.

A broker opinion letter represents a realtor's opinion of a specific property's value. Local jurisdictions routinely require documentation to legally sell property. Brokers must adhere to specific guidelines to evaluate the worth of real property. Typically, realtors use appraisers to determine property value; however, in some cases, brokers can provide an opinion letter instead, typically with foreclosures, when refinancing a property or to avoid the cost of an appraiser.

Instructions

1. Document the client's name. For more than one client purchasing the property, include the full name of each. Type first name, middle name and last name.

2. Write heading titled "Intended Purpose of the Property." Under it, list if the client will use the property as a business operation, a single-family dwelling, a vacation home or as a rental property.

3. Document the heading, "Intended use of the Opinion of Value." In Washington state, for example, realtors can replace appraisals with a broker opinion letter to fulfill the WAC 460-33A-037(2) statute that legally binds the broker to fulfill disclosure requirements in the sale of real estate owned property, so "fulfilling disclosure requirements under WAC 460-33A-037(2) " would suffice as the intended use. State the purpose the letter serves.

4. Type "Physical Address" as the next heading. Provide the full address, including zip code. Include a description of the physical characteristics of the property such as color of the building, one-car attached garage, bay window and other descriptive attributes of the structure.

5. List heading titled "Type and Definition of the Value and its Source." Legally, realtors can't arbitrarily pick any amount to determine the value of a property. Provide specific information on the type of property being valued and define the value based on statistics provided from the city, past appraisals or other brokers. Cite the information analyzed, the procedures followed and the reasoning that supports the amount.

6. Type the date of the opinion under heading: "Date of Opinion." Under it, list the date of the opinion value. Note that the day the broker writes the letter might differ from the day of the value opinion.

7. Document heading, "Qualifications of Broker Valuing the Property." Provide background information on the qualifications of the realtor creating the value of opinion letter.

8. List heading, "Signed Consent." Under it, provide the signature of any realtor used to gather information for the opinion letter and a consent statement that acknowledges the realtor provided data to support the conclusion of the opinion letter.

9. Create signature line with heading: "Broker's Signature" and date line with heading: "Date of Opinion Letter." Have broker sign and date the letter.

References

• Washington State Legislature: WAC 460-33A-037