The Worldwide ERC® Broker’s Market Analysis and Strategy Report serves a crucial role in the real estate sector, offering a structured way for brokers to evaluate a property's state, competitive standing, and prospects in the market. It guides brokers to project the Most Likely Sales Price (MLSP) of a property, grounding their estimation in an objective analysis of the property's present conditions and market dynamics. Notably, this document should not be mistaken for a formal appraisal or a home inspection, as it does not adhere to the Uniform Standards of Professional Appraisal Practice.
Understanding the intricacies of property valuation becomes a sophisticated process with tools such as the Worldwide ERC® Broker's Market Analysis and Strategy Report. This comprehensive form facilitates a detailed examination of a property by a real estate broker, covering various aspects necessary for determining its Most Likely Sales Price (MLSP). It's not a simple home inspection or an appraisal, but rather, a comparative market analysis that is not in compliance with the Uniform Standards of Professional Appraisal Practice, thereby not qualifying as an appraisal under any circumstance. This analysis includes an evaluation of the property's condition, its competition within the current market, and the future marketability aspects, all of which culminate in an estimation of the property's most probable selling price. Additionally, it signals the importance of state-specific disclosure requirements and adheres to procedural guidelines that encompass homeowner contact, property inspection, report submission, and photo provision. The form also ventures into repairs and improvements, potential issues affecting insurability, financing avenues and challenges, neighborhood dynamics, and competing listings, offering a holistic view for brokers to establish an informed marketing strategy sans exceeding a 120-day marketing timeline.
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
Filling out the ERC Broker Market Analysis form is a detailed process that requires careful evaluation and analysis of a property. This form is used to provide an in-depth market analysis and strategy report focusing on the condition, competition, and future marketability of the subject property. It helps in estimating the most likely sales price based on current market conditions. It's crucial to consider any state-specific disclosure requirements and adhere to the requesting company's procedural guidelines throughout this process.
Upon completing the ERC Broker Market Analysis form, review all the information for accuracy and completeness. Ensure that any attachments or supplemental documentation requested by the procedural guidelines are prepared to accompany this form. Submit the report and photos as directed by the requesting company. This thorough analysis will now support the estimation of the subject property's most likely sales price, considering its current condition and the market dynamics.
What is the purpose of the Worldwide ERC® Broker’s Market Analysis and Strategy Report?
The purpose of the Worldwide ERC® Broker’s Market Analysis and Strategy Report is to help real estate brokers conduct a thorough analysis of a property's condition, competition, and its future in the market. The goal is to estimate the property’s Most Likely Sales Price based on the current condition of the property and ensuring it sells within 120 days or as defined by the client. This report is not a home inspection or an official appraisal.
What is meant by "Most Likely Sales Price" (MLSP)?
"Most Likely Sales Price" (MLSP) refers to the price that a broker estimates a property is most likely to sell for, considering its current condition and the current market conditions. It's a key figure that brokers calculate after a detailed analysis, under the assumption that the property will sell within a specified timeframe of not exceeding 120 days, unless otherwise directed by the client.
Is the Broker’s Market Analysis and Strategy Report considered an appraisal?
No, the Broker’s Market Analysis and Strategy Report is not considered an appraisal. While it involves a comparative market analysis, it does not follow the Uniform Standards of Professional Appraisal Practice and should not be used as an official appraisal for any purpose.
What kind of information is included in this form?
This form includes detailed information about the property including its type, location, improvements made by the homeowner, and any known issues that may affect its value or insurability. It also covers a comparison with other similar properties, market conditions, and recommendations for pricing and marketing strategies. Furthermore, it looks into the property's condition, suggesting necessary repairs and improvements.
Are there specific guidelines for preparing and submitting this report?
Yes, there are procedural guidelines detailed in the report which outline steps for contacting the homeowner, inspecting the property, submitting the report, and providing photos. These procedures tend to follow the requesting company’s guidelines to ensure consistency and accuracy.
What are the implications of not including state-specific disclosure requirements in the report?
Failing to include state-specific disclosure requirements in the report can lead to legal complications and might render the report incomplete or non-compliant with local real estate laws. These disclosures are crucial for providing full transparency about the property’s condition and history, which can significantly impact its marketability and value.
How should the report handle listings and sales comparisons?
The report provides a structured comparison between the subject property and other similar properties in terms of listings and recent sales. Information regarding the proximity, pricing, and characteristics of these properties is used to assess the market competition and help determine a realistic and competitive Most Likely Sales Price. This comparative approach aids in understanding how the subject property stacks up against others in the market.
Filling out the ERC Broker Market Analysis form requires attention to detail and accuracy to ensure that the analysis is both comprehensive and reliable. However, there are certain common mistakes that people often make when completing this form. Identifying and avoiding these errors can significantly improve the quality of the analysis.
One common mistake is not providing complete and accurate contact information for both the homeowner and the requesting company. It is crucial to fill in all contact details, including email addresses and phone numbers, to facilitate efficient communication and avoid delays in the process. Additionally, failing to specify the form of ownership and the current listing status of the subject property can lead to misunderstandings regarding the property's marketability and legal status.
Another frequent error is overlooking or incorrectly reporting improvements made by the homeowner. Accurately detailing these improvements, no matter how minor they may seem, can have a substantial impact on the estimated Most Likely Sales Price (MLSP). Similarly, neglecting to check all applicable boxes in the location and site characteristics sections can give an incomplete picture of the property's desirability and potential challenges in selling or insuring it.
Many also fail to properly document and assess the condition of the subject property, including the interior and exterior features. It's imperative to thoroughly inspect the property and accurately report any issues, such as water damage, structural problems, or maintenance needs. These details are essential for determining the necessary repairs and improvements, which in turn influence the MLSP.
The section on competing listings and comparable sales is another area where errors often occur. Not selecting sales that are truly comparable to the subject property in terms of location, features, and condition can lead to an inaccurate assessment of the property's market value. This includes overlooking the importance of the seller concessions and the under contract and closing dates, which can provide insights into market dynamics.
A considerable mistake is failing to consider all potential financing options and any issues that might affect the ability to secure financing for the subject property. This oversight can impact the marketing strategy and ultimately the feasibility of the sale. Moreover, not adequately describing the terms of identified financing options or anticipated issues related to securing financing can leave potential buyers and sellers uninformed.
Last but not least, ignoring or underestimating the significance of the broader market conditions and the specific neighborhood features can severely skew the analysis. It's essential to have a clear understanding of the current economic conditions, inventory levels, and marketing concessions/incentives, as these factors play a critical role in the marketing strategy and pricing of the property.
By being mindful of these common mistakes and taking the necessary steps to avoid them, one can ensure that the ERC Broker Market Analysis form is filled out accurately and comprehensively, thereby providing valuable insights into the property's marketability and estimated sales price.
When navigating the complexities of real estate transactions, particularly within the context of corporate or employee relocations, the Worldwide ERC® Broker’s Market Analysis and Strategy Report (BMA) serves as a critical tool. However, to facilitate a smooth and informed transaction process, several other documents are often employed alongside the BMA. These documents complement the BMA by providing additional insights, ensuring compliance, and facilitating communication among all parties involved.
Incorporating these documents in conjunction with the Worldwide ERC® Broker’s Market Analysis and Strategy Report ensures a well-rounded approach to evaluating and transacting real estate. Each document plays a specific role, contributing to a transparent, compliant, and efficient process that benefits all parties involved. Together, they form the backbone of a successful real estate transaction, especially in scenarios involving relocation where accurate property assessment and clear communication are paramount.
The Comparative Market Analysis (CMA) form closely parallels the ERC Broker Market Analysis form in its objective to provide a detailed overview of a property's market value. This form involves aggregating data from recently sold properties that are comparable to the subject property in location, size, and features to determine its likely selling price. Similar to the ERC Broker Market Analysis, a CMA assesses factors such as location, condition, and recent sales data, but it doesn't involve a formal appraisal. The focus on comparative property analysis makes these two documents quite similar in purpose and content.
The Real Estate Appraisal Report shares similarities with the ERC Broker Market Analysis, particularly in its use of property comparisons and market trends to ascertain value. While the appraisal is more formal and comprehensive, adhering to the Uniform Standards of Professional Appraisal Practice (USPAP), and usually required by lenders in the process of obtaining a mortgage, both documents aim to provide a well-rounded view of a property's value. Unlike the Broker Market Analysis, the appraisal report is recognized in financial transactions as an official valuation.
Listing Agreements often include segments that reflect a broker's market analysis to justify the listing price agreed upon between the property owner and the real estate agent. These sections detail the property's characteristics, the local market conditions, and comparable sales data, akin to what is found in the ERC Broker Market Analysis. However, the primary aim of the Listing Agreement is to establish the terms under which the property is marketed and sold, including the real estate commission, listing period, and duties of the broker and seller.
Home Inspection Reports, while fundamentally different in their primary purpose, share some common ground with the ERC Broker Market Analysis concerning property condition. Both documents require a thorough inspection of the property. The ERC form includes a section for noting any visible defects or maintenance issues, similar to a Home Inspection Report. However, the latter is far more detailed about the property's physical condition and requires a professional home inspector to evaluate every aspect of the property's structure and systems.
The Seller's Disclosure Statement, required in many states, overlaps with parts of the ERC Broker Market Analysis in terms of disclosing known problems with the property. This statement asks sellers to list known defects or issues that could affect the property’s value or desirability. While the ERC form includes a market analysis and pricing recommendation based on various factors, including condition, the disclosure statement is purely about making known any existing problems, without directly influencing the price estimation.
When filling out the ERC Broker Market Analysis form, it’s important to pay close attention to detail and follow these dos and don'ts:
Following these guidelines will ensure a thorough and accurate analysis, helping to determine the most likely sales price effectively.
When considering the Worldwide ERC® Broker's Market Analysis and Strategy Report, it's important to recognize the common misconceptions that may arise. Understanding these can provide clarity and ensure the report's effective use in real estate transactions.
Understanding these misconceptions helps in effectively leveraging the Worldwide ERC® Broker's Market Analysis and Strategy Report for its intended purpose - facilitating informed decisions in the real estate market.
The Worldwide ERC® Broker's Market Analysis and Strategy Report serves a vital purpose for real estate brokers, providing a structured process for evaluating a property's condition, competition in the market, and its future marketability. Here are key takeaways to understand when utilizing this form:
Understanding and accurately completing the ERC Broker's Market Analysis and Strategy Report can significantly influence the sales strategy for a property, ensuring that real estate professionals can provide well-informed, strategic recommendations to their clients.
What Is Form 8300 - To ensure compliance, businesses should have procedures in place for tracking and reporting qualifying transactions.
Fed X Freight - For shipments requiring special attention, the form includes provisions to ensure they are transported with care.