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

mwakili.com

Broker's Opinion of Value

Introduction

This Broker's Opinion of Value (BOV) is prepared for [Your Full Name], a licensed real estate broker in Kenya, and is based on the best available information as of [Date]. The purpose of this BOV is to provide an estimate of the fair market value of the property located at [Property Address] in [City, County], Kenya.

Property Description
Market Analysis
Valuation Methods
Comparable Sales Analysis
Conclusion
Disclaimer

1. Property Description

The subject property is a [Type of Property] located at [Property Address] in [City, County], Kenya. The property sits on a [Size] plot of land and has a total of [Number] bedrooms, [Number] bathrooms, and [Number] living rooms. The property features [List of Features].

2. Market Analysis

The real estate market in [City, County] is currently [Describe Market Conditions]. The market is characterized by [Describe Market Trends]. The demand for [Type of Property] in this area is [Describe Demand].

3. Valuation Methods

The following valuation methods were used to determine the fair market value of the subject property:

Comparable Sales Approach: This method involves analyzing recent sales of similar properties in the area to determine the value of the subject property.
Income Approach: This method involves estimating the potential income that the subject property could generate and then discounting that income to present value.
Cost Approach: This method involves estimating the cost of replacing the subject property with a new one and then adjusting that cost to reflect the property's age, condition, and other factors.

4. Comparable Sales Analysis

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

Comparable Sale	Address	Sale Date	Sale Price	Adjustments	Adjusted Sale Price
[Comparable Sale 1]	[Address]	[Date]	[Price]	[Adjustments]	[Adjusted Price]
[Comparable Sale 2]	[Address]	[Date]	[Price]	[Adjustments]	[Adjusted Price]
[Comparable Sale 3]	[Address]	[Date]	[Price]	[Adjustments]	[Adjusted Price]

Adjustments:

Adjustments were made to the comparable sales to account for differences in size, location, condition, and other factors. The adjustments were based on market data and professional judgment.

5. Conclusion

Based on the analysis of the comparable sales, the market analysis, and the valuation methods used, the fair market value of the subject property is estimated to be [Estimated Value] as of [Date].

6. Disclaimer

This BOV is an opinion of value and should not be considered an appraisal. An appraisal is a formal valuation of a property that is conducted by a licensed appraiser. This BOV is based on the best available information as of [Date] and is subject to change based on market conditions and other factors.

TLDR: The fair market value of the subject property is estimated to be [Estimated Value] as of [Date].

Sources:

Case Laws:

Easton v. Strassburger (1984): This case established a duty of care for real estate brokers in California to investigate and disclose defects in property. The case involved a buyer who sued a broker for failing to disclose a known defect in a property. The court held that the broker had a duty to investigate and disclose defects that were known or should have been known to the broker. (Source: https://law.justia.com/cases/california/court-of-appeal/3d/152/90.html ↗)
Pepperdine Law Review: This article discusses the implications of the Easton v. Strassburger case and the birth of negligence in real estate broker-purchaser relationships. (Source: https://core.ac.uk/download/pdf/71933211.pdf ↗)

Broker's Opinion of Value Document

Broker's Opinion of Value

Property Address: [Property Address]

City, County: [City, County]

Date: [Date]

Prepared By: [Your Full Name]

License Number: [Your License Number]

Property Description:

Market Analysis:

Valuation Methods:

The following valuation methods were used to determine the fair market value of the subject property:

Comparable Sales Approach: This method involves analyzing recent sales of similar properties in the area to determine the value of the subject property.
Income Approach: This method involves estimating the potential income that the subject property could generate and then discounting that income to present value.
Cost Approach: This method involves estimating the cost of replacing the subject property with a new one and then adjusting that cost to reflect the property's age, condition, and other factors.

Comparable Sales Analysis:

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

Comparable Sale	Address	Sale Date	Sale Price	Adjustments	Adjusted Sale Price
[Comparable Sale 1]	[Address]	[Date]	[Price]	[Adjustments]	[Adjusted Price]
[Comparable Sale 2]	[Address]	[Date]	[Price]	[Adjustments]	[Adjusted Price]
[Comparable Sale 3]	[Address]	[Date]	[Price]	[Adjustments]	[Adjusted Price]

Adjustments:

Adjustments were made to the comparable sales to account for differences in size, location, condition, and other factors. The adjustments were based on market data and professional judgment.

Conclusion:

Based on the analysis of the comparable sales, the market analysis, and the valuation methods used, the fair market value of the subject property is estimated to be [Estimated Value] as of [Date].

Disclaimer:

Signature:

[Your Signature]

Date: [Date]

License Number: [Your License Number]

Contact Information:

[Your Phone Number]

[Your Email Address]