Real Estate Professionals May Prepare Broker’s Price Opinions and Comparative Market Analysis for Tax Appeals Regarding Real Property
Nebraska Legislative Bill 375 amends the Nebraska Real Estate License Act and the Real Property Appraiser Act to allow real estate professionals to complete a Broker’s Price Opinion and Comparative Market Analysis for the purpose of tax appeals regarding real property. Briefly, a Broker’s Price Opinion is an opinion of a licensed real estate professional regarding the price of real estate, and Comparative Market Analysis helps a broker determine the price of real estate by comparing the property in question to other real property currently or recently in the marketplace.
Under current law, brokers licensed under the Nebraska Real Estate License Act may complete a Broker’s Price Opinion and Comparative Market Analysis for the purpose of listing, purchasing, or selling real estate, and to originate, extend, renew, or modify a loan in any non-federal transaction. Legislative Bill 375 alters the definitions of Broker’s Price Opinion and Comparative Market Analysis by including “real property tax appeals” as a possible purpose.
LB 375 also amends the Real Property Appraiser Act, which prohibits a real estate agent from charging a commission or brokerage fee in connection with the sale of real estate unless the agent meets certain requirements, one of which is a legend on the Broker’s Price Opinion or Comparative Market Analysis. In accordance with LB 375, the legend must read:
This opinion or analysis is not an appraisal. It is intended only for the benefit of the addressee for the purpose of assisting buyers or sellers or prospective buyers or sellers in deciding the listing, offering, or sale price of the real property, for lending purposes in a transaction other than a federally related transaction, or for real property tax appeal purposes. This opinion or analysis is not governed by the Real Property Appraiser Act.
When homeowners protest the tax valuation of their properties, they must provide documentation regarding the value of the property. For many homeowners, the cost of an appraisal may be prohibitive. When LB 375 becomes effective on September 6, 2015, licensed real estate professionals will be able to assist homeowners by preparing Broker’s Price Opinions or Comparative Market Analyses to document the value of homes in support of tax appeals.
Sean Nakamoto, Summer Associate