The Worldwide ERC® Broker’s Market Analysis and Strategy Report serves as a vital tool for real estate brokers. This form facilitates a thorough examination of a property's condition, competitive landscape, and potential marketability, ultimately helping brokers estimate the Most Likely Sales Price. It is essential for brokers to adhere to state-specific disclosure requirements while utilizing this form.
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The ERC Broker Market Analysis form serves as a vital tool for real estate brokers tasked with evaluating a property’s market position. It allows brokers to analyze the condition of the property, assess competition, and estimate the Most Likely Sales Price (MLSP). This form is not an appraisal or a home inspection, but rather a comparative market analysis that helps brokers make informed decisions. The analysis focuses on the property’s current state, any improvements made, and its marketability within a specific timeframe. Brokers must also be mindful of state-specific disclosure requirements and incorporate them into the report. The form includes various sections that gather essential information about the property, including its location, condition, and any issues that may affect its insurability. It also prompts brokers to consider the broader market area and economic conditions that could influence the property’s value. In essence, this comprehensive form equips brokers with the necessary insights to guide their clients effectively 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
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Filling out the ERC Broker Market Analysis form requires careful attention to detail. This process involves gathering information about the property, its condition, and the surrounding market. Once completed, the form will provide valuable insights into the property's value and marketability.
The ERC Broker Market Analysis form is designed to help real estate brokers conduct a thorough analysis of a property's condition, its competition, and its future marketability. This analysis ultimately allows the broker to estimate the Most Likely Sales Price (MLSP) of the property. It is important to note that this form is not a home inspection or an appraisal, and it should not be used as such.
In the property condition section, brokers should check any relevant boxes that apply to the property they are analyzing. This includes aspects such as the décor, evidence of water damage, structural problems, and any maintenance issues. Descriptions should be provided for each checked item to give a clearer picture of the property's condition.
The analysis takes into consideration various local market conditions by examining the subject neighborhood and the broader market area. Brokers should identify the neighborhood, analyze price trends, and assess the average days on market for similar properties. This information helps in determining how the subject property fits within the current market landscape.
Yes, preparers of the ERC Broker Market Analysis form must be aware of any state-specific disclosure requirements. These requirements should be included in the form as appropriate. It is crucial for brokers to comply with local laws to ensure that all necessary information is disclosed to potential buyers.
The Most Likely Sales Price (MLSP) is a critical figure derived from the analysis. It reflects the estimated price at which the property is likely to sell, based on its current condition and the competitive landscape. The MLSP is determined with a marketing time not exceeding 120 days, which provides a realistic timeframe for potential sale.
Failing to provide complete and accurate contact information for both the homeowner and the requesting company can lead to communication issues and delays.
Not checking all applicable property condition issues can result in an incomplete analysis, which may affect the estimated sales price.
Omitting state-specific disclosure requirements can lead to legal complications and may impact the validity of the report.
Neglecting to describe the subject property’s improvements can create misunderstandings about its current condition and marketability.
Providing vague or incomplete comments on market conditions can hinder the ability to accurately assess the property’s value.
Forgetting to include financing options and any necessary concessions may limit potential buyers and complicate the selling process.
Not identifying marketing concessions for competing properties can put the subject property at a disadvantage in a competitive market.
The ERC Broker Market Analysis form is a vital tool for real estate professionals assessing a property's market value and potential. However, several other documents and forms often accompany this analysis to provide a comprehensive understanding of the property and its market context. Below is a list of these important documents, each serving a unique purpose in the evaluation process.
Each of these documents plays a crucial role in the real estate transaction process. Together, they provide a comprehensive view of the property, its market potential, and the necessary steps to facilitate a successful sale.
The Comparative Market Analysis (CMA) is a widely used tool in real estate that helps agents estimate the value of a property. Similar to the ERC Broker Market Analysis form, a CMA compares the subject property to recently sold homes in the same area. The goal is to determine a fair market value based on comparable sales, taking into account factors like location, size, and condition. While both documents aim to provide a price estimate, a CMA is more focused on past sales data rather than the current condition and marketability of the property.
The Home Inspection Report serves a different purpose but shares some similarities with the ERC Broker Market Analysis. This document details the condition of a property, identifying any issues that may affect its value or safety. Like the ERC form, it requires thorough observation and documentation of various aspects of the home. However, a home inspection report is more technical and is usually conducted by a licensed inspector, whereas the ERC form is prepared by a real estate broker and focuses on market conditions and pricing.
The Appraisal Report is another document that bears similarities to the ERC Broker Market Analysis. Appraisals are conducted by licensed appraisers and provide a formal valuation of a property based on specific criteria, including comparable sales, property condition, and market trends. While both documents aim to assess property value, appraisals follow strict guidelines and standards, making them legally defensible, unlike the ERC form, which is more subjective and tailored for market analysis.
The Listing Agreement, while primarily a contract between a seller and a real estate agent, shares some characteristics with the ERC Broker Market Analysis. Both documents involve an assessment of the property and its marketability. The Listing Agreement outlines the terms under which the property will be marketed and sold, while the ERC form provides an analysis to help determine the Most Likely Sales Price. Both documents rely on market data and the broker's expertise to guide the sales process.
The Property Disclosure Statement is a document that requires sellers to disclose known issues with the property. Similar to the ERC Broker Market Analysis, it aims to provide transparency about the property's condition. While the ERC form focuses on estimating value and marketability, the Property Disclosure Statement is more about informing potential buyers of any defects or concerns that could affect their decision to purchase.
The Seller’s Disclosure Notice is closely related to the Property Disclosure Statement but is often required by state law. It provides detailed information about the property’s condition and history, similar to the ERC Broker Market Analysis in that both aim to inform potential buyers. However, the ERC form is more focused on the market analysis aspect, while the Seller’s Disclosure Notice emphasizes legal obligations and transparency regarding the property's condition.
The Real Estate Purchase Agreement is another document that shares some similarities with the ERC Broker Market Analysis. This agreement outlines the terms of the sale between the buyer and seller, including price and contingencies. While the ERC form helps estimate the price based on market conditions, the Purchase Agreement finalizes that price and the terms under which the property will be sold. Both documents play crucial roles in the real estate transaction process, with the ERC form being more analytical and the Purchase Agreement being contractual.
This form is not an appraisal. It is a comparative market analysis designed to estimate the Most Likely Sales Price based on property condition and market conditions.
This report does not serve as a home inspection. It focuses on market conditions and property analysis, rather than detailed inspections of the property’s condition.
The Most Likely Sales Price is an estimate based on current market conditions and is not a guarantee of sale price.
Preparers must be aware of and include any state-specific disclosure requirements themselves, as these are not automatically covered in the form.
This form is tailored for specific property types and conditions. It may not be suitable for all real estate transactions.
The form expires on a specific date, and any analysis conducted using it should be considered within the context of its expiration.
This form does not provide legal advice. It is meant for market analysis and should not be interpreted as legal guidance.
The form can be used for various property types, including condos, townhouses, and mixed-use properties, depending on the specifics provided.
While the form provides a framework for analysis, additional documentation may be necessary to support the findings, such as photos or inspection reports.
The Erc Broker Market Analysis form is a tool for real estate brokers to assess a property's condition and marketability.
It is crucial to remember that this form is not an appraisal or home inspection; it serves as a comparative market analysis.
When filling out the form, be sure to include any state-specific disclosure requirements that apply to the property.
The estimated Most Likely Sales Price (MLSP) should reflect the property's "as is" condition and a marketing time of no more than 120 days.
Follow the requesting company's guidelines for contacting homeowners, inspecting the property, and submitting the report.
Include any necessary comments about the property's condition, repairs needed, and any potential issues that may affect its insurability.