The Worldwide ERC® Broker’s Market Analysis and Strategy Report is a vital tool for real estate brokers. It assists in assessing a property's condition, its competition, and its potential marketability, ultimately helping to estimate the Most Likely Sales Price. This analysis is distinct from a home inspection or appraisal and is not intended for those purposes.
To get started on your analysis, please fill out the form by clicking the button below.
The Worldwide ERC® Broker’s Market Analysis and Strategy Report serves as a crucial tool for real estate brokers looking to assess a property’s market position. This form is not merely an appraisal or home inspection; rather, it focuses on evaluating the subject property’s condition, competitive landscape, and potential for future marketability. By conducting a thorough analysis, brokers can estimate the Most Likely Sales Price (MLSP) based on the property’s “as is” condition and a marketing timeframe of up to 120 days. It's essential for brokers to be aware of any state-specific disclosure requirements and to incorporate them into their analysis. The form guides users through procedural steps, including contacting the homeowner, inspecting the property, and submitting the report with relevant photos. Additionally, it prompts brokers to gather detailed information about the property, such as its location, improvements made, and any locational issues that may affect its insurability. This comprehensive approach not only aids in determining the property’s value but also enhances the broker's strategy for marketing and selling the property effectively.
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:
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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
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Filling out the ERC Broker Market Analysis form is a detailed process that requires careful attention to various aspects of the property in question. This form will guide you in assessing the property’s condition, competition, and marketability. Below are the steps to effectively complete the form.
Once the form is filled out, it will be submitted according to the requesting company’s guidelines. Ensure all information is accurate and thorough, as this will contribute to a well-informed market analysis.
What is the purpose of the ERC Broker Market Analysis form?
The ERC Broker Market Analysis form is designed to help real estate brokers conduct a thorough analysis of a property's condition, competition, and future marketability. By utilizing this form, brokers can estimate the property's Most Likely Sales Price (MLSP). It's important to note that this analysis is not an appraisal or a home inspection.
What information is required to complete the form?
To complete the form, brokers must provide details about the property, including the homeowner's information, property address, and contact numbers. Additionally, information regarding the real estate firm, property conditions, improvements made, and any relevant neighborhood characteristics should be included.
What is the Most Likely Sales Price (MLSP) based on?
The MLSP is determined based on the property's "as is" condition and assumes a marketing time not exceeding 120 days for a contract of sale. Brokers should base their estimates on the current market conditions and comparable properties.
Are there any specific guidelines for using this form?
Yes, brokers should adhere to the procedural guidelines set by the requesting company. This includes how to contact the homeowner, inspect the property, submit the report, and provide any necessary photos. Additionally, brokers must be aware of and include any state-specific disclosure requirements.
Can the ERC Broker Market Analysis form be used as an appraisal?
No, the ERC Broker Market Analysis form is not an appraisal and should not be used as such. It is a comparative market analysis that does not conform to the Uniform Standards of Professional Appraisal Practice.
What should be included in the property condition section?
The property condition section requires brokers to check off any issues they are aware of or observe during their inspection. This may include signs of water damage, structural problems, or deferred maintenance. Brokers should provide comments to elaborate on any checked items.
What types of financing options should be identified in the form?
Brokers should identify the most probable means of financing for the subject property, which may include FHA, VA, cash, or conventional mortgage options. They should also describe any financing concessions that may be necessary to secure the sale.
How should neighborhood conditions be reported?
Neighborhood conditions should be described in terms of property values, average days on market, and any major corporations moving in or out of the area. Brokers should also comment on current economic conditions that could impact marketability.
What are the implications of HOA fees in the analysis?
HOA fees should be reported in the analysis, including the amount, payment frequency, and what services are covered. Brokers should also note any special assessments that the HOA may impose, as these can affect the property's marketability.
What should brokers do if they anticipate financing issues?
If brokers anticipate any issues that may affect financing—such as zoning, environmental concerns, or HOA restrictions—they should indicate this on the form and provide comments to explain the potential impact on the sale.
Completing the ERC Broker Market Analysis form can be a detailed process, and it’s easy to make mistakes that could affect the accuracy of the report. One common error is not providing complete or accurate information about the property. For instance, failing to include the homeowner's contact details or the property address can lead to delays and miscommunication. Ensure that all fields are filled out thoroughly to avoid complications.
Another frequent mistake is overlooking state-specific disclosure requirements. Each state has its own regulations regarding property disclosures, and neglecting to include this information can result in legal issues down the line. Always check your state’s requirements and make sure to incorporate them into the form as needed.
Additionally, many individuals underestimate the importance of the property condition section. This area requires careful observation and detail. Failing to note issues such as water damage, structural problems, or deferred maintenance can mislead potential buyers about the property’s true condition. Be diligent in documenting any concerns that could affect marketability.
Another area where mistakes often occur is in estimating the Most Likely Sales Price (MLSP). Relying solely on outdated comparables or neglecting to consider the current market conditions can skew the price estimation. It’s essential to use recent sales data and analyze current market trends to arrive at a realistic and competitive price.
Lastly, many brokers forget to provide sufficient marketing insights. The analysis should include details about competing listings, local economic conditions, and any marketing concessions being offered. This information is crucial for understanding the property's position in the market. A well-rounded analysis will help in presenting a more compelling case to potential buyers.
The ERC Broker Market Analysis form serves as a crucial tool for real estate brokers to evaluate properties and determine their market value. However, it is often accompanied by several other important documents that provide additional insights and support for the analysis. Below is a list of documents commonly used alongside the ERC Broker Market Analysis form, each with a brief description.
These documents collectively enhance the broker's ability to provide a comprehensive analysis of the property, ensuring that both sellers and buyers are well-informed throughout the transaction process.
When filling out the ERC Broker Market Analysis form, it is essential to approach the task with care and attention to detail. Here are four key dos and don’ts to keep in mind:
This form is not an appraisal. It serves as a comparative market analysis, which is distinct from an appraisal that adheres to specific professional standards. The analysis provided is meant to estimate the Most Likely Sales Price based on market conditions, not to determine the property’s value in a formal appraisal context.
The Erc Broker Market Analysis form does not replace a home inspection. While it may include observations about the property’s condition, it is not intended to provide a detailed inspection report. Home inspections require a different level of scrutiny and expertise.
The MLSP is an estimate based on current market conditions and the property’s condition. It is not a guaranteed sale price, as many factors can influence the final sale, including market fluctuations and buyer interest.
This form may require adjustments based on state-specific disclosure requirements. It is essential for brokers to be aware of these regulations and ensure that the form complies with local laws.
While the form is often used for residential properties, it can also apply to various property types, including commercial and mixed-use properties. The analysis can be adapted to fit different property categories as needed.
The Erc Broker Market Analysis form allows for flexibility in how information is presented. While certain sections need to be completed, brokers can provide comments and details in a manner that best reflects the property and market conditions.
Although the copyright dates back to 2008, the principles and guidelines outlined in the form remain applicable. Market analysis techniques evolve, but the foundational elements of conducting a comparative market analysis still hold true.