The Worldwide ERC® Broker’s Market Analysis and Strategy Report is a vital tool for real estate brokers. This report assists brokers in evaluating a property’s condition, competition, and potential marketability to estimate its Most Likely Sales Price. It is important to remember that this report is not an appraisal and should not be treated as such.
To start your analysis, fill out the form by clicking the button below.
The ERC Broker Market Analysis form serves as a crucial tool for real estate professionals aiming to assess the marketability of a property. This structured report enables brokers to examine the current condition of a property, analyze competition, and evaluate future market trends. By conducting a thorough comparative market analysis, brokers can arrive at an informed estimate of the Most Likely Sales Price (MLSP) for the subject property. It's important to note that this form does not serve the purpose of a home inspection or an official appraisal; rather, it provides a comprehensive overview based on observable conditions and competitive listings. Prepares are encouraged to incorporate any state-specific disclosures to maintain compliance. The report includes a range of sections covering property details, economic conditions, and potential financing issues, ensuring that brokers have a clear understanding of both the subject property and the surrounding market dynamics. Ultimately, by utilizing this form, brokers can offer valuable insights to their clients, assisting them in making informed decisions in the real estate market.
Worldwide ERC® Broker’s Market Analysis and Strategy Report
Purpose: This report is designed to enable the real estate broker to conduct a diligent analysis of the subject property’s condition, competition, and future marketability. Based on this analysis, the broker is to estimate the subject property’s Most Likely Sales Price.
This is not a home inspection. Nor is this an appraisal; this comparative market analysis has not been performed in accordance with the Uniform Standards of Professional Appraisal Practice. It is not to be construed as an appraisal and may not be used as such for any purpose. Preparers of this form need to be aware of any state-specific disclosure requirements and include them in this form as appropriate.
Procedural Guidelines: For procedures on contacting homeowner, inspecting property, submitting report, and providing photos, follow the requesting company’s guidelines. The Most Likely Sales Price (MLSP) is based on “as is” condition and a marketing time not to exceed 120 days to a contract of sale or as directed by the client.
INFORMATION
File #:
Homeowner(s):
Property Address:
Home Phone #:
City, State, Zip:
Work Phone #:
BMA Requested by (Co. & Contact):
e-mail:
Requesting Co. Address:
Phone #:
Fax #:
ASSIGNMENT
Real Estate Firm:
Contact Name:
Real Estate Firm Address:
Agent Preparer:
Homeowner’s purchase price: $
Date purchased:
Improvements made by homeowner if any:
Is the subject currently listed?
□ Yes
□ No
Listing Company/Agent:
Form of Ownership:
□ Fee Simple
□ Leasehold
Occupant:
□ Homeowner
□ Tenant
□ Vacant
Type: □ Condo
Coop
PUD
Single Family
Mixed Use
Town House
Modular
Mobile Home
SUBJECT
□ Other:
Indicate any personal property that remains (e.g., refrigerator, range, etc):
Subject’s location type:
□ Urban
□ Suburban
□ Distant suburban
□ Rural
□ Farm
□ Resort
Lot Characteristics: positive/negative (explain):
Subject’s view: positive/negative (explain):
Locational issues OF WHICH you are aware that may affect the insurability of the property:
LOCATION
Site Characteristics of which you are aware (check all that apply):
□ Private Street Access
□ Private Street Maintenance
□ Gated
□ Alley
□ Easements/Encroachments
□ Sidewalk
□ Curbs/Gutters
□ Street Lighting
□ Paved Street Surface
□ Paved Driveway Surface
Miscellaneous of which you are aware (check all that apply):
□ Maintenance issues with neighboring properties
□ Excess acreage or land
□ Mobile homes/trailer park nearby
□ Subject located on or near designated environmental sites
□ Location next to agricultural area
□ Close proximity to hospital/firehouse, etc.
□ Neighborhood has restrictive covenants
□ Subject located near railroad tracks
□ Audible street or highway noise present
□ Located on or backs up to busy/main street
□ Location in flood plain
□ Location in earthquake zone
□ Location next to school or public park
□ Property located on corner lot
□ Access to subject property
□ Location near/in view of power lines/water towers/ radio towers
□ Location next to industrial area
□ Located on airport flight path
□ Additional Comments:
Check all other items of which you are aware that may affect the marketability or value of the subject property and comment below:
□ Style of home not typical for the area
□ Subject is over improved
□ Subject is under improved
MISCELLANEOUS
□ Inadequate parking
□ Functional obsolescence
□ Steep driveway
□ Proposed land use change
□ Little sales activity in area or price range
□ Estimated time to sell is more than 120 days
□ Proposed or pending assessments
□ Property taxes not typical for area
□ HOA has first right of refusal
□ HOA does not allow “for sale” signs on property
□ HOA fees not typical for the area
□ Other
Comments:
Copyright © 2008 by Worldwide ERC®
Rev. 01/07/2009
This Form Expires 12/31/2009
Page 1 of 6
SUBJECT CONDITION
INSPECTIONS/DISCLOSURES
Property Condition
For all the following of which you are aware or observe in viewing the property, check the appropriate box(es) and describe:
□Décor of home is personalized or dated:
□Incomplete construction:
□Evidence of past or present water damage:
□Cracks or stains on walls, floors, or ceilings:
□Oil tank (abandoned):
□Oil tank (in use):
□Underground storage tank (abandoned):
□Underground storage tank (in use):
□Synthetic stucco:
□Suspected structural problems:
□Evidence of odor:
□Evidence of pet damage:
□Evidence of deferred maintenance: Additional Comments:
Recommended Repairs and Improvements
Interior Items
R&I Estimates
□ Paint
Estimated cost per item: $
Comment:
□ Flooring
□ Wall paper removal
□ Appliances
□ Cabinets
□ Light fixtures
□ Countertops
□ Bathroom fixtures
Total Estimated Cost for Interior Repairs
$
Exterior Items
□ Landscaping
□ Driveway/walkway
□ Porch/deck
□ Pool
□ Spa
Estimated cost per item :$
□ Gutters
□ Siding
□ Trim
□ Roof
□ Detached structures
□ Debris removal
□ Windows and screens
Total Estimated Cost for Exterior RepairS
List all required, customary and additionally recommended inspections (e.g., municipal, certificate of occupancy, environmental, etc.): Required:
Customary:
Additionally recommended for the subject property:
Subject property issues OF WHICH you are aware that may affect insurability of the subject property:
List all required disclosures:
Page 2 of 6
Identify the most probable means of financing for the subject:
□ FHA
□ VA
□ Cash
□ Conventional mortgage—conforming or jumbo
Describe the terms of the financing type identified above:
Identify and describe any financing concessions that may be necessary to secure the sale of the subject property.
□ Points:
□ Closing Costs:
FINANCING
Do you anticipate any issues that may affect the ability to secure financing for the subject property (e.g., condition, zoning, environmental, HOA, etc.)?
□ Yes □ No
If yes, comment:
If the subject property is a common interest development (e.g., condo, townhouse, PUD), what is the ratio of owners to investors?
□ N/A
Owners:
%
Investors:
(total MUST equal 100%)
HOA Fees: $
How often are they paid?
□ Monthly
□ Quarterly
□ Semi-annually
□ Annually
Items included in HOA Fees: □ Trash Pick-up
□ Snow Removal
□ Exterior Building Maintenance
□ Security/Concierge Services
□ Insurance
□ Taxes
□ Amenities
□ Common Area Maintenance
WATER
SEWER
Are you aware of any special assessments covered by the HOA?
If yes, indicate the amount of assessment: $
Describe what the special assessment covers:
Subject Neighborhood (For purposes of this report, the subject neighborhood is defined by the preparer of this form. Identify what you regard as the
subject neighborhood and then use statistics that you have gathered which reflect that market area. Note: the neighborhood might be a MLS area, a
particular section of a town, a specific subdivision, or an entire community. This is described as the “micro area.”)
Subject neighborhood is defined as:
Price Range: $
to $
Property Values are: □ Increasing
% in past
months
□ Stable
Average Days-on-Market (list to contract)
days
□ Decreasing
(# of days)
Calculate the months supply of inventory (Absorption Rate):
Type of competing listings
New Homes
Resale
Number of active listings ÷
Avg. number of sales per month
=
Number of months needed
REO/Foreclosure
for the last 6 months
to sell existing inventory
Corporate
Total (MUST equal 100%)
100%
Describe all marketing concessions/incentives being offered to buyers and/or brokers on competing properties:
CONDITIONS
Recommend any marketing concessions/incentives that should be offered for the subject:
MARKET
Describe major corporation(s) in this neighborhood that are moving into, out of, or planning layoffs:
Describe current economic conditions (positive or negative) that may have an Effect on the marketability of the property:
Broader Market Area (For purposes of this report, the broader market area is defined as that area beyond the subject neighborhood in which buyers will
look for comparable properties. This is described as the “macro area.” In some instances, the broader market area will be the same as the subject’s
neighborhood. If this is the case, indicate it below.)
What do you consider the “broader market area” to be for this property?
Are there any specific issues in the broader market area which are not reflected in the specific neighborhood that might affect the sale of the subject property? Consider types of competing homes (e.g., new construction, REO’s); incentives or concessions that are occurring; economic conditions; a dramatically different price range than the subject; days on market; etc.
This Form Expire 12/31/2009
Page 3 of 6
COMPETING LISTINGS
ITEM
Competing Listing #1
Competing Listing #2
Competing Listing #3
Address, City
Current MLS #
Proximity to Subject
Original List Price
Current List Price
Seller Concessions
Last Price Change Date
Days-on-market (DOM)
from original list date
Previous listing history for last
Orig. List Price $
Last List Price $
Last List Price
12 months
DOM:
Style
□ Brick
□ Wood
□ Composite
□ Stone
Exterior Finish
□ Aluminum
□ Stucco
(Check all that apply)
□ Synthetic Stucco
□ Vinyl
□ Hardcoat Stucco
□ Slate
Roof Type
□ Tar
□ Tile
□ Wood shake
□ Tin
□ Asphalt shingle
□ Copper
□ None
□ Garage
# of Cars
□ Attached
Car Storage/Type
□ Detached
□ Built-in
□ Carport
Year Built
Lot Size
Appx. Gross Living Area
Sq. Ft
Above Grade Room Count
Tot
Brms.
Baths
Tot.
Basement
□ Partial
□ SLAB
□ Full
□ Crawl Space
WALK-OUT
Basement Finish
Attic (Check all that apply)
Attic Access
□ Walkup
□ Hatch
□ Pull down steps
Bonus Room
□ Barn
Detached Structures
□ Guest House
□ Studio
□ Pool House
□ Shed
Deck/Patio
Pool/Spa
Fireplace(s)
□ Public
□ Private
Water Supply
□ Community
□ Well
□ Septic
□ Sewer
Waste Disposal
□ Cesspool
Type of Air Conditioning
□ Central
□ Window/Wall
□ Heat Pump
□ Gas
□ Propane
□ Electric
Type of Heating System
□ Radiant
□ Oil
□ Wood stove
□ Solar
□ Base Board
□ Coal
□ Heat pump
□ Radiator
Location
□ Superior
□ Similar
□ Inferior
Lot Characteristics
View
Floor Plan Utility
Ext. Condition’s Appeal
Int. Condition’s Appeal
Overall Rating of Listings as
Compared to Subject
Listing #1: Date inspected:
Listing #2: Date inspected:
Listing #3: Date inspected:
Page 4 of 6
Instructions: Select sales within the last six months which are suitable and similar to the subject property and within the same/similar market area.
COMPARABLE SALES
Comparable Sale #1
Comparable Sale #2
Comparable Sale #3
MLS #
Final List Price
Sales Price
Under Contract Date
Closing Date
□Partial
Full
□ Window/Wall □ Heat Pump
Overall Rating of Sales as
Sales #1: Inspected? □ Yes
□ No Comments:
Sales #2: Inspected?
□Yes
Sales #3: Inspected?
Page 5 of 6
MOST LIKELY
BUYER(S)
MARKETING STRATEGY
VALUE
ANALYSIS
SIGNATURES
Check all that apply:
□ Local Buyer
□ Transferee
□ International Buyer
□ First-time Homebuyer
□ Second-home Buyer
□ Empty Nester
□ Military
□ Parent Purchaser for Child
□ Move-up Homebuyer
□ Investor
□ Dual-income
What are the three - five challenges to getting this property sold?
1.
2.
3.
4.
5.
What are the three - five actions necessary to address the challenges identified above?
What are the top five creative ideas you will use in marketing this property keeping in mind the challenges and actions identified above?
Additional Comments:
Most Likely Sales Price (MLSP): $
Suggested List Price (SLP): $
The MLSP is based on “as is” condition and a marketing time not to exceed
days to a contract of sale.
Real Estate Firm Tax ID #:
Date of Inspection:
Agent Preparer Name:
Contact Signature:
Agent Preparer Signature:
Page 6 of 6
The next steps involve completing the ERC Broker Market Analysis form accurately and thoroughly. Information provided will assist in evaluating the property in question. Follow the outlined steps below to ensure all necessary details are captured.
What is the purpose of the ERC Broker Market Analysis form?
The ERC Broker Market Analysis form helps real estate brokers evaluate a property’s condition, competition, and future marketability. By conducting this analysis, brokers can estimate the property's Most Likely Sales Price (MLSP). It is important to understand that this report is not a home inspection or an appraisal, and it should not be used as such.
What is included in the form?
The form includes sections for information about the property, the homeowner, and the requesting company. It asks for detailed input about the property’s condition, neighborhood characteristics, and financing options. Brokers need to document both required and recommended inspections, as well as any necessary repairs and improvements.
Who prepares the report?
The report is prepared by a real estate broker or agent. They need to gather comprehensive details about the property and its surroundings. It is important for the preparer to be aware of any state-specific disclosure requirements that may need to be included in the report.
What is meant by Most Likely Sales Price (MLSP)?
The Most Likely Sales Price is an estimate of the price a property could sell for based on its current condition and market conditions. The assessment typically considers a marketing time of up to 120 days or as directed by the client. This valuation is particularly useful for determining an appropriate listing price or negotiating offers.
What should brokers be aware of when using this form?
Brokers should understand that the form is a comparative market analysis and does not constitute a formal appraisal. Additionally, they should ensure that all local and state-specific disclosure requirements are met. It’s also crucial to follow the procedural guidelines for contacting homeowners and documenting property conditions accurately.
When filling out the ERC Broker Market Analysis form, many individuals make critical errors that can affect the accuracy of the analysis. One common mistake is failing to provide up-to-date contact information. It is essential that the homeowner's phone and email addresses are correct. If the broker cannot reach the homeowner, vital insights about the property could be missed.
Another frequent issue is insufficient details regarding property improvements. Neglecting to note any renovations or changes made by the homeowner can lead to an inaccurate assessment of the property's value. It is paramount that all improvements are documented in order to provide a comprehensive analysis.
Many brokers overlook the importance of accurately describing the property type and condition. For example, marking the property as "Vacant" without any clarification or explanation can lead to confusion. Providing specific details about whether the property is owner-occupied or rented is also critical.
Inadequate attention to locational issues can create problems. Brokers should be thorough in detailing any locational factors that might affect the property, such as proximity to transportation, schools, or commercial areas. Ignoring these issues risks underestimating or overestimating the future marketability of the property.
It's crucial not to overlook any environmental risks. The form requires brokers to understand and disclose potential environmental concerns related to the property. This might include being near a flood zone or a site with hazardous materials. Such factors play a significant role in value assessment and insurability.
Failure to provide an accurate estimate for repairs is another mistake that can hinder the analysis. Listing estimates that are far too low or high can skew the perceived condition of the property. Providing realistic repair and improvement costs based on current market rates is essential for a credible analysis.
Finally, brokers sometimes neglect to provide a detailed market analysis for comparable properties. Relying on outdated or inappropriate comps can lead to inaccurate conclusions regarding the property’s value. It is vital to include current listings and sales data to support the recommended price range for the subject property.
When preparing the ERC Broker Market Analysis form, there are several supporting documents that can enhance the analysis and provide additional context for evaluating a property. Understanding these documents can assist in making well-informed decisions regarding marketability and pricing.
Utilizing these documents alongside the ERC Broker Market Analysis form will provide a comprehensive view of the property in question, aiding in precise evaluations and informed decision-making.
When completing the ERC Broker Market Analysis form, here are four key dos and don'ts to keep in mind:
Misconception 1: The form is a home inspection report.
This form is not intended for home inspections. Its purpose is to analyze the property's condition and marketability but does not include the detailed evaluations typically performed during an inspection. Potential issues may be noted, but that does not replace a full inspection by a certified professional.
Misconception 2: This analysis is the same as an official appraisal.
It is important to understand that this is a comparative market analysis, not an appraisal. It does not adhere to the Uniform Standards of Professional Appraisal Practice. As such, it should not be used in place of, or confused with, a formal appraisal.
Misconception 3: The form guarantees an accurate market value.
While the analysis estimates a property’s Most Likely Sales Price, it does not guarantee that the property will sell for that amount. Market conditions can change, and various factors can influence the actual sale price.
Misconception 4: All necessary disclosures are automatically included in the report.
The preparers of this form must be aware of and include any state-specific disclosure requirements. This form does not automatically cover all necessary disclosures; it requires the preparer to add any relevant information pertinent to the specific property and location.
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