Guides · 2026-10-04

Why I can give you an opinion of value but not an appraisal

An owner thinking about listing, or a first-time investor comparing two buildings, often asks me for a number. Under Virginia law I may provide a valuation or analysis of real estate for a fee without an appraiser licence. I may not hold myself out as a real estate appraiser, and the result may not be called an appraisal or used in place of one performed by a licensed appraiser. That is the short answer. The rest is what the rule covers and what it leaves out.

What the Virginia rule says

Virginia licenses real estate brokers and salespeople separately from appraisers. A broker or salesperson licensed in Virginia may provide a valuation or analysis of real estate for a fee without an appraiser licence. Two limits come with that permission. The person may not hold himself out as a real estate appraiser. And the valuation may not be called an appraisal or used in lieu of an appraisal performed by a licensed appraiser.

So the permission and the limits sit in the same sentence. A licensed salesperson can prepare a valuation or analysis and charge for it. The same salesperson cannot present that work as an appraisal, cannot present himself as an appraiser, and cannot offer it as a replacement for an appraisal done by a licensed appraiser.

That is the whole of the state rule as it applies here. It is about who may prepare the document, what it may be called, and what it may stand in for.

What federal law calls a broker price opinion

Federal law uses a different term. It defines a broker price opinion as an estimate prepared by a real estate broker, agent or salesperson that details the probable selling price of a particular piece of real estate. The definition says the estimate provides a varying level of detail about the property's condition, market and neighborhood, and information on comparable sales. It also says the term does not include an automated valuation model.

Two things follow from that wording. The estimate is about probable selling price, and the amount of detail can vary. The definition does not promise a fixed format or a fixed level of depth. It also draws a clear line: an automated valuation model is not a broker price opinion under this definition.

If you are handed a document and told it is a broker price opinion, this is the definition that describes it.

The one use federal law rules out

Federal law places a limit on how a broker price opinion may be used. It may not be used as the primary basis to determine the value of a property for the purpose of originating a residential mortgage loan.

Read that carefully. The restriction is on the use, not on the document. It applies when the purpose is originating a residential mortgage loan, and it applies when the opinion would be the primary basis for the value. The verified facts do not go further than that, and I will not either.

What this means for you is narrow and worth knowing before you order anything. If the value is being determined for that purpose, a broker price opinion is not the document that may serve as the primary basis. Whether an appraisal is needed, and who may prepare it, is a question for the lender or whoever set the requirement. That depends on the paperwork in front of you, and it is worth checking before you sign.

Questions to ask before you rely on a valuation

You do not need to memorize statutes to protect yourself here. You need to ask a few plain questions and get plain answers.

• What is this document called?

• Who prepared it, and under what licence?

• What is it going to be used for?

• Does anything in the paperwork you have — a lease, a loan document, an engagement letter — say who may prepare a valuation or what it must contain?

Those answers tell you what you are holding. If the document is called an appraisal, or the person is holding himself out as an appraiser, that is a different situation from an opinion of value prepared by a licensed salesperson. If the use is originating a residential mortgage loan, the federal limit above applies.

Where your own facts decide the answer — the lease, the loan paperwork, the jurisdiction the property sits in — say so out loud and check before you sign. I would rather you ask twice than rely on the wrong document once.

Questions I get asked

Can a broker price opinion be used to originate a residential mortgage loan? Under federal law, a broker price opinion may not be used as the primary basis to determine the value of a property for the purpose of originating a residential mortgage loan. That is the limit stated in the statute. Whether a particular transaction falls within it depends on the paperwork and the purpose, and it is worth confirming with the lender before you rely on any document.

What is a broker price opinion, exactly? Federal law defines it as an estimate prepared by a real estate broker, agent or salesperson that details the probable selling price of a particular piece of real estate. It provides a varying level of detail about the property's condition, market and neighborhood, and information on comparable sales. The definition does not include an automated valuation model.

Can a Virginia salesperson charge a fee for a valuation? Yes. A real estate broker or salesperson licensed in Virginia may provide a valuation or analysis of real estate for a fee without an appraiser licence. The same rule adds two limits: the person may not hold himself out as a real estate appraiser, and the valuation may not be called an appraisal or used in lieu of one performed by a licensed appraiser.

What should I check before I sign a listing agreement or a lease? Check what the document calls the valuation, who is permitted to prepare it, and what it may be used for. If a lease, loan document or engagement letter speaks to any of that, read it before you sign. Where the answer turns on your own paperwork or the jurisdiction the property sits in, confirm it rather than assume.

Sources

Va. Code § 54.1-2010(A)(1) — https://law.lis.virginia.gov/vacode/title54.1/chapter20.1/section54.1-2010/ (checked 2026-10-04)

12 U.S.C. § 3355 — https://www.law.cornell.edu/uscode/text/12/3355 (checked 2026-10-04)

Rules above are quoted from these published sources on the dates shown. Nothing on this page comes from a client file or a private communication.

This is general information about how these transactions work, not legal or tax advice for your situation.