Home sales pricing clarified

When a homeowner wants to determine a reasonable price at which to list a house for sale, a real estate agent or broker is usually asked to compare recent neighborhood sales. It’s technically called a “broker price opinion” and usually considered part of the package of services included in the agent’s commission.

HF323, sponsored by House Commerce and Regulatory Reform Committee Chairman Joe Hoppe (R-Chaska), clarifies that role. The committee approved the bill March 15 and sent it to the House floor.

Sen. Chris Gerlach (R-Apple Valley) sponsors a companion, SF167, which awaits action by the full Senate.

The bill also allows those preparing a broker price opinion to charge and collect a fee. However, the fee is not intended to apply to a typical home seller or buyer, said Paul Eger, vice president for governmental affairs with the Minnesota Association of Realtors.

It’s intended for the increased number of third parties interested in obtaining price opinions, due to the great number of foreclosed properties on the market.

The bill also permits more than one exclusive agreement for representation for different real estate services. For example, if a property stays on the market for months, the seller may simultaneously try to lease it. Those services could be performed by different companies or individuals. The bill also clarifies that a broker price opinion is not an appraisal for mortgage purposes.