Competitive Market Analysis - Real Estate Commission

To address confusion that could arise under current regulations that address both opinions of value and competitive market analyses prepared by a real estate licensee, the Commission has repealed those regulations (Code of Ethics 09.11.02.02 F and G) and adopted a new one entitled "Competitive Market Analysis."

The regulation, which went into effect on July 19, 2004, provides that a licensee may prepare a competitive market analysis of a specific property for a client, prospective client, or customer. The analysis must include the following language printed conspicuously and without change on the first page:

COMPETITIVE MARKET ANALYSIS DISCLOSURE
This analysis is not an appraisal. It is intended only 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.

The regulation also provides that a licensee must disclose to the client, prospective client, or customer any interest the licensee has in a property included as a comparable in the analysis.