Broker Price Opinions & CMAs: What “Negotiating a Listing” Really Means

What TREC Actually Requires

Under TREC Rule §535.16(c), a real estate license holder is required to provide a BPO or CMA when negotiating a listing. Many stop reading there—and that’s where confusion begins.

When you read this rule alongside TREC Rule §535.17, the intent becomes clear:

• A BPO or CMA is not an appraisal and must not be presented as one
• It is a market-based analysis prepared using your knowledge and experience
• It must include required statutory disclaimer language verbatim
• It must be retained for four years like any other transaction document
• Sales agents may prepare it, but it is submitted in the broker’s name and under broker responsibility

The phrase “negotiating a listing” is often misunderstood. It does not apply only to traditional seller listings or only to residential home sales. In practice, it applies any time you are engaging in brokerage activity where pricing, terms, or representation are being established on behalf of a client—seller, buyer, landlord, or tenant. When you are helping a seller determine a listing price, advising a buyer on what to offer, assisting a landlord in setting lease terms, or guiding a tenant on rental pricing and strategy, you are negotiating in a way that relies on market analysis. In each of these situations, a BPO or CMA supports your role by providing market-based insight to guide those decisions. The rule is not limited to one side of the transaction or one property type—it applies across all four: sale (seller), purchase (buyer), lease (landlord), and lease (tenant).

What is a BPO or CMA under Texas law?

A Broker Price Opinion (BPO) or Comparative Market Analysis (CMA) is a market-based analysis prepared by a real estate license holder to assist a client in determining pricing or strategy. It is not an appraisal and must include specific disclaimer language required by TREC Rule §535.17.

When is a BPO or CMA required?

Under TREC Rule §535.16(c), a BPO or CMA is required when negotiating a listing, which includes any situation where a license holder is advising a client on pricing or terms using market data.

Does “negotiating a listing” only apply to sellers?

No. It applies to all transaction types—seller, buyer, landlord, and tenant—whenever the agent is providing pricing guidance or market-based advice.

Can a real estate agent give an opinion of value?

An agent may provide a BPO or CMA, but may not perform an appraisal or represent their analysis as an appraisal unless licensed under the Texas Occupations Code as an appraiser.

What must be included in a BPO or CMA?

The document must include the required TREC disclaimer language verbatim, be submitted under the broker’s name, and be retained for four years.