Valuation, Marketing and Brokerage Practice
Valuation
Value and approaches
Market value is the most probable price in an arm's-length transaction with informed, willing parties and no undue pressure. Appraisers use the sales comparison approach for typical homes, the cost approach for newer or special-purpose properties, and the income approach for income-producing property. Highest and best use is the reasonably probable use that produces the highest value.
Adjustments and reconciliation
In the sales comparison approach, the subject is compared with closed sales, and adjustments are made to the comparables. If a comparable is superior to the subject, subtract value from the comparable; if inferior, add value. Adjust for differences in location, size, condition, garage, lot, and date of sale. Reconciliation weighs the approaches and selects a final estimate.
CMA versus appraisal
A comparative market analysis is a brokerage tool for pricing and is not a licensed appraisal. An appraisal must follow applicable standards and be performed by a qualified appraiser. Common traps: adjusting in the wrong direction, treating price per square foot as conclusive, and using the cost approach as primary for an older home where depreciation is hard to measure.
Worked example: A comparable sold for $300,000 and has a two-car garage worth $15,000 more than the subject's carport. Because the comparable is superior, subtract $15,000, producing an adjusted value of $285,000.
Marketing and Brokerage Practice
Advertising and identity
Advertising must identify the licensed brokerage. Licensees may use team names and social media, but the firm's licensed name must appear and the principal broker remains responsible. Advertising must be truthful and not misleading. Solicitation must respect do-not-call rules and fair housing law. Promotions and rebates should be disclosed and handled according to law and brokerage policy.
Fair housing and ethics
Federal and New Hampshire fair housing laws prohibit discrimination based on protected characteristics in advertising, showing, negotiation, and terms. Steering, discriminatory statements, and selective service are violations even when unintentional. Agents should present all offers promptly unless the seller directs otherwise in writing, and should avoid giving legal or tax advice beyond their competence.
Cooperation and antitrust
MLS cooperation and compensation are common, but competitors may not agree to fix commissions, split markets, or boycott other brokerages. Commission amounts are negotiable between broker and client. Referral fees may be shared only as permitted with licensed brokerages.
Traps: ads missing the brokerage name, team names that imply a separate firm, and casual commission conversations with competitors are frequent question targets.
Worked example: An agent posts a listing on social media as Team Smith. The post must also identify the licensed brokerage, such as Smith Realty, because the team is not a separate licensed entity unless it is.