House approves broker pricing bill

A “broker price opinion,” or a market value analysis of a property’s likely selling price, is usually considered part of the package of services included in the real estate agent’s commission. It is not the same as a full appraisal.

A bill was approved 131-0 by the House April 4 that would allow those preparing a broker price opinion to charge and collect a fee. However, the fee would not apply to a typical home seller or buyer, but to third parties interested in obtaining price opinions, such as banks handling foreclosed properties.

Sponsored by Rep. Joe Hoppe (R-Chaska), HF323*/ SF167 awaits action by the full Senate. Sen. Chris Gerlach (R-Apple Valley) is the Senate sponsor.

The bill would also permit 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 would also clarify that a broker price opinion is not an appraisal for mortgage loan purposes.