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Draft a Broker's Opinion of Value for a real estate broker

Broker's Opinion of Value

Table of Contents

  1. Introduction

  2. Purpose of the Broker's Opinion of Value

  3. Methodology

  4. Assumptions and Limiting Conditions

  5. Analysis of Comparable Properties

  6. Reconciliation of Value

  7. Conclusion

  8. Disclaimer

Introduction

This Broker's Opinion of Value (BOV) is prepared for [Client Name] and is based on the best available information as of [Date]. The property being valued is located at [Property Address] and is a [Property Type] with [Property Features].

Purpose of the Broker's Opinion of Value

The purpose of this BOV is to provide [Client Name] with an estimate of the fair market value of the subject property as of [Date]. This BOV is not intended to be a formal appraisal and should not be used as a substitute for a professional appraisal.

Methodology

The methodology used to develop this BOV is based on the following:

  • Market Analysis: A review of recent sales of comparable properties in the same market area.

  • Data Collection: Gathering information on the subject property, including its physical characteristics, location, and market conditions.

  • Comparative Market Analysis (CMA): Analyzing the data collected to determine the value of the subject property based on the sales of comparable properties.

  • Adjustments: Making adjustments to the sales prices of comparable properties to account for differences in size, condition, location, and other factors.

  • Reconciliation: Combining the adjusted sales prices of comparable properties to arrive at a final estimate of the fair market value of the subject property.

Assumptions and Limiting Conditions

This BOV is based on the following assumptions and limiting conditions:

  • The subject property is in good condition and has no known defects.

  • The market for real estate in the subject property's location is stable and active.

  • The information used to develop this BOV is accurate and reliable.

  • This BOV is not a formal appraisal and should not be used as a substitute for a professional appraisal.

Analysis of Comparable Properties

The following comparable properties were analyzed to determine the fair market value of the subject property:

Property AddressSale DateSale PriceAdjustmentsAdjusted Sale Price
[Comparable Property 1 Address][Date][Price][Adjustments][Adjusted Price]
[Comparable Property 2 Address][Date][Price][Adjustments][Adjusted Price]
[Comparable Property 3 Address][Date][Price][Adjustments][Adjusted Price]

Adjustments:

  • Size: Adjustments were made to account for differences in the size of the subject property and the comparable properties.

  • Condition: Adjustments were made to account for differences in the condition of the subject property and the comparable properties.

  • Location: Adjustments were made to account for differences in the location of the subject property and the comparable properties.

  • Other Factors: Adjustments were made to account for other factors that may affect the value of the subject property, such as the presence of amenities or the proximity to schools or parks.

Reconciliation of Value

Based on the analysis of comparable properties, the adjusted sale prices of the comparable properties range from [Lowest Adjusted Price] to [Highest Adjusted Price]. Taking into account the specific characteristics of the subject property and the market conditions, the fair market value of the subject property is estimated to be [Estimated Fair Market Value].

Conclusion

The fair market value of the subject property, located at [Property Address], is estimated to be [Estimated Fair Market Value] as of [Date]. This BOV is based on the best available information and is subject to the assumptions and limiting conditions outlined above.

Disclaimer

This BOV is not a formal appraisal and should not be used as a substitute for a professional appraisal. The information contained in this BOV is for informational purposes only and should not be considered as a guarantee of value. [Client Name] should consult with a qualified real estate appraiser to obtain a formal appraisal of the subject property.

Sources:

  • The Land Registration Act, 2012: This Act provides the legal framework for land registration in Kenya, including the definition of "fair market value."

  • The Valuation for Rating Act, 2015: This Act provides the legal framework for the valuation of property for rating purposes in Kenya.

  • The Estate Agency Act, 2011: This Act regulates the activities of estate agents in Kenya, including the provision of valuations.

  • The Real Estate (Regulation and Development) Act, 2012: This Act provides the legal framework for the regulation and development of the real estate sector in Kenya.

Note: This BOV is a sample document and should be adapted to the specific circumstances of the subject property and the client's needs. It is important to consult with a qualified real estate professional to ensure that the BOV is accurate and meets the client's requirements.

Answered by mwakili.com