However, most Realtors® are not appraisers, so a CMA is merely an opinion. Granted, it is a very educated opinion, but it is still an opinion by a non-appraiser nonetheless.
That is what in any case that a Realtor® creates a CMA for a purpose other than for servicing a potential Seller, there are certain guidelines that MUST be followed.
What other purpose could a Realtor® create a CMA? Well, the most popular non-potential-sale purpose of a CMA is for estate purposes: Someone wants to know what to tell a lawyer regarding the value of their recently deceased uncles house.
CMA Guidelines
When preparing a CMA for a purpose other than for a potential seller, a Realtor® MUST include the following items, per the Realtor® Code of Ethics, Article 11:
- Identification of the property that is being evaluated
- What “value” the Realtor® comes up with
- Data to back up the “value” opinion, like statistics.
- Whether or not there are any “limiting conditions” that may affect the “value” and what they are
- Anyone who may have an interest in buying or leasing the property or anyone who may be possibly representing the buyer or seller in the future sale/purchase of the property
- What date the CMA was prepared
- A statement to the effect that this is an opinion of value and not an appraisal
These are the guidelines that any Realtor® in any state must follow, and if a Colorado real estate agent is NOT a Realtor® they still must at the very least supply a statement like the following: “The preparer of this evaluation is not registered, licensed, or certified as a real estate appraiser in the state of Colorado.”
These guidelines are in place to protect the public from any intentional or unintentional misrepresentation of property value.
Posted By: Mariana Wagner Colorado Springs Realtor®
