The North Carolina Supreme Court has held that real estate brokers may legally testify regarding the fair market value of real property in condemnation cases. In NCDOT v. Mission Battleground Leasco, LLC, the condemnee attempted to offer the testimony of a licensed real estate broker as to the property’s fair market value . The NCDOT argued against allowing the broker’s testimony based upon state law that says licensed real estate brokers are only allowed to provide opinions of the “probable selling or leasing price” of real property. NCDOT argued that a state-certified appraiser is the only party legally allowed to estimate the fair market value of real property.
The trial court agreed with the NCDOT and excluded the broker’s testimony. The Court of Appeals unanimously affirmed the trial court’s decision. On appeal, the NC Supreme Court stated that the authority allowing experts to testify is found in the state’s Rules of Evidence, and not in a statute such as the one that allows licensed real estate brokers to offer broker price opinions and comparative market analyses. The court also stated, “Any person who can qualify as an expert under that standard . . . , can testify without having to invoke any other source of authority. Meeting that standard is both necessary and sufficient.”
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