The Worldwide ERC® Broker's Market Analysis and Strategy Report is a crucial tool designed for real estate brokers to perform a comprehensive analysis of a property's condition, competition, and marketability potential. Through this focused analysis, brokers are expected to accurately estimate the Most Likely Sales Price (MLSP) of the subject property, considering its current condition and a reasonable marketing timespan. It's important to note that this report is not a home inspection or an appraisal, but a comparative market analysis that should not be used as an appraisal for any purpose.
In today's fast-moving real estate market, the accuracy and depth of property analysis can significantly influence selling strategies and pricing decisions. The Worldwide ERC® Broker's Market Analysis and Strategy Report is a comprehensive tool designed for real estate brokers to assess a property's condition, competition, and marketability comprehensively. This detailed form endeavors to aid brokers in estimating the most likely sales price of a property, offering a structured approach to evaluating various factors that may affect a property's appeal and value in the market. It's important to note that this analysis is distinct from a formal appraisal or home inspection and does not adhere to the Uniform Standards of Professional Appraisal Practice. Furthermore, the form prompts brokers to consider state-specific disclosure requirements, ensuring that all relevant legal and procedural guidelines are followed. This includes procedures for contacting homeowners, inspecting the property, submitting the report, and providing photographs, with the ultimate goal of determining an "as-is" most likely sales price within a specified marketing timeframe, commonly not exceeding 120 days. Through the examination of property specifics, current listing status, improvements, and various attributes alongside neighborhood and broader market area insights, the report serves as a crucial planning and benchmarking document in the real estate transaction process.
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 crucial step in real estate transactions that require an in-depth look at the property's current state and its position in the market. Real estate brokers are tasked with evaluating various facets such as property condition, competitive market analysis, and future marketability, to ultimately estimate the most likely sales price. The process involves detailed inspection but is distinct from a formal appraisal or home inspection. It becomes essential to approach this analysis with attention to detail, ensuring accuracy and compliance with any state-specific disclosure requirements. Following a systematic approach will streamline the process.
Once the form is filled out comprehensively, it should be submitted following the requesting company's procedural guidelines, along with any required photographs or additional documentation. This careful analysis serves as a foundation for estimating the subject property’s Most Likely Sales Price and strategizing the marketing approach.
What is the purpose of the Worldwide ERC® Broker's Market Analysis and Strategy Report? The report's purpose is to assist real estate brokers in conducting a thorough analysis of a property’s condition, its competition, and its potential for future marketability. The broker uses this analysis to estimate the property's Most Likely Sales Price (MLSP), based on its current condition and assuming a marketing time of up to 120 days until a contract of sale is secured.
Is the ERC Broker Market Analysis the same as a home inspection or an appraisal? No, this analysis is neither a home inspection nor an appraisal. It does not conform to the Uniform Standards of Professional Appraisal Practice and should not be used as an appraisal for any purpose. Its main function is comparative market analysis.
Are there any state-specific requirements that need to be included in this form? Yes, preparers of the form must be aware of and include any state-specific disclosure requirements in this form as necessary. This ensures the analysis adheres to local legal necessities.
What procedural guidelines should be followed when completing the report? The report outlines specific guidelines, including contacting the homeowner, inspecting the property, submitting the report, and providing photos. These actions should align with the requesting company's procedures.
How is the Most Likely Sales Price determined? The Most Likely Sales Price is determined based on the property’s “as is” condition, with an expected marketing time not exceeding 120 days to secure a contract of sale, unless directed otherwise by the client.
What information is required from the homeowner? The form requests detailed information from the homeowner, including the purchase price, date of purchase, improvements made, current listing status, form of ownership, and type of occupancy, among other specifics about the property.
What kinds of inspections and disclosures are included? The analysis includes a section for property condition inspections and disclosures, which lists various aspects of the property to be checked (like evidence of water damage, structural problems, etc.) and recommends repairs and improvements. It also covers required, customary, and recommended inspections and disclosures.
How does the form address financing and neighborhood market conditions? The form identifies probable means of financing and describes terms of the identified type. It also requires an analysis of the subject neighborhood's market conditions, including property values, average days-on-market, and inventory absorption rate. Additionally, it addresses competing listings and sales to evaluate marketability and pricing strategies.
Filling out the Worldwide ERC® Broker's Market Analysis and Strategy Report requires attention and accuracy, as even small mistakes can lead to significant consequences in assessing a property's market value. One common mistake is overlooking state-specific disclosure requirements. Unlike other real estate forms, the ERC Broker Market Analysis necessitates an understanding of local regulations and ensuring they are correctly included in the report.
Another error often made is inaccurately evaluating the subject property’s condition. Brokers might underreport issues such as evidence of past or present water damage, which can significantly affect the property’s Most Likely Sales Price (MLSP). Providing a thorough and honest condition report is crucial for an accurate analysis.
Incorrectly estimating the Most Likely Sales Price based on the “as is” condition and failing to consider a realistic marketing time within the 120-day limit is another frequent mistake. This not only sets unrealistic expectations but can also mislead homeowners and potential buyers about the property's true market value.
Failure to properly document improvements made by the homeowner is yet another pitfall. This omission can lead to underestimating the property's value, especially if significant updates have contributed to its marketability and overall appeal.
Not thoroughly examining comparable listings and sales within the same or similar market area can lead to a skewed market analysis. Neglecting this step means missing out on essential data that could inform the subject property’s pricing strategy.
Omitting details about the subject neighborhood and broader market area's current economic conditions and market trends also poses a problem. This information can significantly influence the property’s marketability and sales strategy, and neglecting it reduces the analysis's effectiveness.
Bypassing the subject property’s potential financing issues, such as zoning or environmental concerns that could impact the ability to secure financing, is an oversight. Addressing these potential challenges upfront can save time and prevent complications during the sale process.
Another common mistake is not being thorough in listing all required, customary, and additionally recommended inspections. These inspections are vital to understanding the property's condition and ensuring no significant issues are missed.
Lastly, brokers sometimes fail to indicate any issues around the subject property that may affect insurability, such as being located in a flood plain or earthquake zone. Highlighting these factors is crucial, as they can have a significant impact on the property’s marketability and the Most Likely Sales Price.
When dealing with real estate transactions, particularly in the context of employee relocations, a range of additional forms and documents often accompany the Worldwide ERC® Broker's Market Analysis and Strategy Report. Understanding these documents can help streamline the process and ensure all necessary information is accurately and comprehensively compiled.
Comprehensively assembling and reviewing these documents with the aid of a real estate professional ensures a smoother transaction process, providing confidence and security for both parties involved. Utilizing the Worldwide ERC® Broker's Market Analysis and Strategy Report alongside these critical documents allows for a well-informed, thorough approach to employee relocation or any real estate transaction.
A Comparative Market Analysis (CMA) report is similar because it also assesses a property’s market value based on the current market trends and comparable properties. The Worldwide ERC® Broker’s Market Analysis form shares this goal by estimating the Most Likely Sales Price, albeit with a specific focus on relocation-related real estate transactions.
A Real Estate Appraisal shares similarities as it evaluates a property's worth. However, the Worldwide ERC® form clearly states it is not an appraisal but rather a market analysis not adhering to the Uniform Standards of Professional Appraisal Practice. The distinction lies in the formal appraisal process versus the broker-centric market analysis approach.
The Home Inspection Report is another document with parallels, focusing on a property’s condition. While the Broker’s Market Analysis includes observation of the property's condition, it is primarily concerned with marketability and pricing, not the detailed assessment of the home’s structural aspects.
Pre-listing Inspection Report is similar to some extent as it might inform sellers what issues might need fixing before selling. The section of the ERC form that lists recommended repairs and improvements serves a similar purpose but within the unique context of preparing a property for the most likely sales price estimation.
Property Disclosure Statement is related in that it requires the disclosure of known issues which might affect the property's value. The ERC’s Broker Market Analysis form also asks the broker to list known locational issues and property condition disclosures, ensuring awarement of factors affecting insurability and value.
Listings of Active, Under Contract, and Sold Properties offer details on properties currently for sale, pending sale, or recently sold. The Broker’s Market Analysis involves similar data collection, analyzing current listings and recent sales to estimate the subject property's competitive market price objectively.
A Neighborhood Analysis Report focuses on the broader market conditions, including economic and demographic factors that influence real estate values. The ERC form encompasses an assessment of the subject neighborhood and broader market area to identify trends, supply, demand, and other factors impacting property value and marketability.
The Marketing Strategy Plan for real estate listing. Similar to the ERC form, this would integrate market data, property condition, and comparative analysis to inform a strategic plan aimed at achieving the best possible sale outcome within a specified timeframe.
Filling out the Worldwide ERC® Broker's Market Analysis and Strategy Report requires attention to detail and accuracy. Here are six dos and don'ts to guide you through the process:
Adhering to these guidelines ensures that the Broker’s Market Analysis and Strategy Report is completed accurately and efficiently, providing valuable information for both the homeowner and the real estate professional.
When it comes to the Worldwide ERC® Broker's Market Analysis and Strategy Report, there are several misconceptions that can confuse both homeowners and professionals in the real estate industry. Understanding these misconceptions is crucial for accurately analyzing and estimating a property's Most Likely Sales Price (MLSP).
Misconception 1: It’s equivalent to a home inspection. This report focuses on evaluating a property's marketability based on its condition and competition, not on inspecting the structural and functional aspects of the home like a home inspection does.
Misconception 2: It serves as an appraisal. Although it may seem similar, this report does not adhere to the Uniform Standards of Professional Appraisal Practice and should not be construed as an official appraisal.
Misconception 3: Only the property's current condition is analyzed. While the current condition of the property is a significant factor, the analysis also includes market trends, competition, and potential marketability.
Misconception 4: It guarantees the property’s sale price. The MLSP proposed in the report is an educated estimation based on many factors and does not guarantee the actual sale price of the property.
Misconception 5: State-specific disclosures are not important. The necessity to be aware of and include any state-specific disclosure requirements in the report is crucial for legal compliance and accuracy.
Misconception 6: The analysis is valid indefinitely. Market conditions fluctuate, making it essential to consider the analysis's timeliness. The report's validity is in the context of the current market conditions, which can change.
Misconception 7: All properties are evaluated the same way. The report is customized based on the property type, location, and other specific characteristics, meaning each property's analysis is unique.
Misconception 8: The report is only for the homeowner's benefit. While it certainly benefits the homeowner by providing a realistic view of their property’s market standing, it also assists real estate professionals in devising effective marketing strategies.
Misconception 9: Marketing strategy is not included in the report. A significant component of the report is recommending a strategy to market the property effectively, based on the analysis.
Correcting these misconceptions helps in setting realistic expectations and making informed decisions when preparing to sell a property.
When real estate brokers fill out the Worldwide ERC® Broker’s Market Analysis and Strategy Report, they embark on a detailed examination of a property's current condition, competitive standing, and future marketability. This process is crucial for estimating the property’s Most Likely Sales Price (MLSP) effectively. Below are five key takeaways to understand about this essential form:
Understanding and accurately completing the Worldwide ERC® Broker’s Market Analysis and Strategy Report enables real estate professionals to provide valuable insights into a property's marketability and pricing strategy, tailored to its unique characteristics and the current market dynamics.
W3 Form - It is mandatory for any employer who files paper W-2 forms, providing a concise overview of the total payroll expenses incurred.
Security Report Writing - Efficacious method for security guards to record and communicate daily findings and events during their shifts.