Content Overview
In the dynamic realm of real estate, the Worldwide ERC® Broker's Market Analysis and Strategy Report stands out as a comprehensive tool designed for real estate brokers to meticulously evaluate a property's present condition, scrutinize its competition, and judiciously forecast its marketability prospects. This pivotal analysis, pivotal in estimating the Most Likely Sales Price (MLSP) of a property, is instrumental in strategizing for a property's sale, distinctively noting that it is neither a detailed home inspection nor a formal appraisal. The report emphasizes the importance of adherence to specific procedural guidelines, including the thorough inspection of the property, engagement with the homeowner, and the meticulous documentation required, conveying all findings through a structured reporting mechanism and photography. Additionally, it highlights state-specific disclosure prerequisites that preparers must integrate, underscoring the significance of accuracy and compliance in the real estate domain. The document diligently outlines the necessary steps in assessing a wide array of property types and conditions while detailing the need for consideration of various market factors that could impact the property’s sales strategy and pricing. With its structured format and detailed directives on assessing and reporting on a property's condition, competitive positioning, and market prospects within a stipulated timeframe, the form serves as an indispensable asset for real estate professionals navigating the complexities of property sales.
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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.
File #: Homeowner(s):
Property Address: Home Phone #:
City, State, Zip: Work Phone #:
BMA Requested by (Co. & Contact): e-mail:
Requesting Co. Address: Phone #:
City, State, Zip: Fax #:
Real Estate Firm:
Contact Name: e-mail:
Real Estate Firm Address: Phone #:
City, State, Zip: Fax #:
ASSIGNMENT INFORMATION
Agent Preparer: Phone #:
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
□ Other:
SUBJECT INFORMATION
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:
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
SUBJECT LOCATION
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:
MISCELLANEOUS
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
□ 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
Copyright © 2008 by Worldwide ERC
®
Rev. 01/07/2009 This Form Expires 12/31/2009 Page 2 of 6
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 Estimated cost per item: $ Comment:
□ Wall paper removal Estimated cost per item: $ Comment:
□ Appliances Estimated cost per item: $ Comment:
□ Cabinets Estimated cost per item: $ Comment:
□ Light fixtures Estimated cost per item: $ Comment:
□ Countertops Estimated cost per item: $ Comment:
□ Bathroom fixtures Estimated cost per item: $ Comment:
□ Other: Estimated cost per item: $ Comment:
□ Other: Estimated cost per item: $ Comment:
□ Other: Estimated cost per item: $ Comment:
Total Estimated Cost for Interior Repairs $
Exterior Items R&I Estimates
□ Landscaping Estimated cost per item: $ Comment:
□ Paint Estimated cost per item: $ Comment:
□ Driveway/walkway Estimated cost per item: $ Comment:
□ Porch/deck Estimated cost per item: $ Comment:
□ Pool Estimated cost per item: $ Comment:
□ Spa Estimated cost per item :$ Comment:
□ Gutters Estimated cost per item: $ Comment:
□ Siding Estimated cost per item: $ Comment:
□ Trim Estimated cost per item: $ Comment:
□ Roof Estimated cost per item: $ Comment:
□ Detached structures Estimated cost per item: $ Comment:
□ Debris removal Estimated cost per item: $ Comment:
□ Windows and screens Estimated cost per item: $ Comment:
□ Other: Estimated cost per item: $ Comment:
□ Other: Estimated cost per item: $ Comment:
□ Other: Estimated cost per item: $ Comment:
SUBJECT CONDITION
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:
INSPECTIONS/DISCLOSURES
List all required disclosures:
Copyright © 2008 by Worldwide ERC
®
Rev. 01/07/2009 This Form Expire 12/31/2009 Page 3 of 6
Identify the most probable means of financing for the subject: □ FHA □ VA □ Cash □ Conventional mortgage—conforming or jumbo
□ Other:
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:
□ Other:
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 □ Landscaping □ Snow Removal □ Exterior Building Maintenance
□ Security/Concierge Services □ Insurance □ Taxes □ Amenities
□ Common Area Maintenance Water Sewer
□ Other:
Are you aware of any special assessments covered by the HOA? □ Yes □ No
If yes, indicate the amount of assessment: $
FINANCING
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 $
Average Days-on-Market (list to contract) days
(# of days)
Property Values are: □ Increasing % in past months
□ Stable
□ Decreasing % in past months
Type of competing listings
New Homes %
Resale %
REO/Foreclosure %
Corporate %
Calculate the months supply of inventory (Absorption Rate):
Number of active listings ÷ Avg. number of sales per month = Number of months needed
for the last 6 months to sell existing inventory
Total (Must equal 100%) 100%
Describe all marketing concessions/incentives being offered to buyers and/or brokers on competing properties:
Recommend any marketing concessions/incentives that should be offered for the subject:
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?
MARKET CONDITIONS
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.
Copyright © 2008 by Worldwide ERC
®
Rev. 01/07/2009 This Form Expires 12/31/2009 Page 4 of 6
ITEM SUBJECT 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
12 months
Orig. List Price $
Last List Price $
DOM:
Orig. List Price $
Last List Price $
DOM:
Orig. List Price $
Last List Price $
DOM:
Orig. List Price $
Last List Price $
DOM:
Style
Exterior Finish
(Check all that apply)
□ Brick □ Wood
□ Composite □ Stone
□ Aluminum □ Stucco
□ Synthetic Stucco □ Vinyl
□ Hardcoat Stucco
□ Other:
□ Brick □ Wood
□ Composite □ Stone
□ Aluminum □ Stucco
□ Synthetic Stucco □ Vinyl
□ Hardcoat Stucco
□ Other:
□ Brick □ Wood
□ Composite □ Stone
□ Aluminum □ Stucco
□ Synthetic Stucco □ Vinyl
□ Hardcoat Stucco
□ Other:
□ Brick □ Wood
□ Composite □ Stone
□ Aluminum □ Stucco
□ Synthetic Stucco □ Vinyl
□ Hardcoat Stucco
□ Other:
Roof Type
(Check all that apply)
□ Composite □ Slate
□ Tar □ Tile
□ Wood shake □ Tin
□ Asphalt shingle □ Copper
□ Other:
□ Composite □ Slate
□ Tar □ Tile
□ Wood shake □ Tin
□ Asphalt shingle □ Copper
□ Other:
□ Composite □ Slate
□ Tar □ Tile
□ Wood shake □ Tin
□ Asphalt shingle □ Copper
□ Other:
□ Composite □ Slate
□ Tar □ Tile
□ Wood shake □ Tin
□ Asphalt shingle □ Copper
□ Other:
Car Storage/Type
(Check all that apply)
□ None
# of Cars
□ Garage □ Attached
□ Detached
□ Built-in
□ Carport □ Attached
□ Detached
□ Built-in
□ Other:
□ None
# of Cars
□ Garage □ Attached
□ Detached
□ Built-in
□ Carport □ Attached
□ Detached
□ Built-in
□ Other:
□ None
# of Cars
□ Garage □ Attached
□ Detached
□ Built-in
□ Carport □ Attached
□ Detached
□ Built-in
□ Other:
□ None
# of Cars
□ Garage □ Attached
□ Detached
□ Built-in
□ Carport □ Attached
□ Detached
□ Built-in
□ Other:
Year Built
Lot Size
Appx. Gross Living Area Sq. Ft Sq. Ft Sq. Ft Sq. Ft
Above Grade Room Count
Tot
Brms.
Baths
Tot.
Brms.
Baths
Tot.
Brms.
Baths
Tot.
Brms.
Baths
Basement
(Check all that apply)
□ None □ Partial
□ Slab □ Full
□ Crawl Space Walk-out
□ None □ Partial
□ Slab □ Full
□ Crawl Space Walk-out
□ None □ Partial
□ Slab □ Full
□ Crawl Space Walk-out
□ None □ Partial
□ Slab □ Full
□ Crawl Space Walk-out
Basement Finish
Attic (Check all that apply)
□ None □ Partial
□ Crawl Space □ Full
□ None □ Partial
□ Crawl Space □ Full
□ None □ Partial
□ Crawl Space □ Full
□ None □ Partial
□ Crawl Space □ Full
Attic Access
□ Walkup □ Hatch
□ Pull down steps
□ Walkup □ Hatch
□ Pull down steps
□ Walkup □ Hatch
□ Pull down steps
□ Walkup □ Hatch
□ Pull down steps
Bonus Room
Detached Structures
(Check all that apply)
□ None □ Barn
□ Guest House □ Studio
□ Pool House □ Shed
□ Other:
□ None □ Barn
□ Guest House □ Studio
□ Pool House □ Shed
□ Other:
□ None □ Barn
□ Guest House □ Studio
□ Pool House □ Shed
□ Other:
□ None □ Barn
□ Guest House □ Studio
□ Pool House □ Shed
□ Other:
Deck/Patio
Pool/Spa
Fireplace(s)
Water Supply
□ Public □ Private
□ Community □ Well
□ Public □ Private
□ Community □ Well
□ Public □ Private
□ Community □ Well
□ Public □ Private
□ Community □ Well
Waste Disposal
□ Septic □ Sewer
□ Cesspool
□ Other:
□ Septic □ Sewer
□ Cesspool
□ Other:
□ Septic □ Sewer
□ Cesspool
□ Other:
□ Septic □ Sewer
□ Cesspool
□ Other:
Type of Air Conditioning
(Check all that apply)
□ None □ Central
□ Window/Wall □
Heat Pump
□ Other:
□ None □ Central
□ Window/Wall □
Heat Pump
□ Other:
□ None □ Central
□ Window/Wall □
Heat Pump
□ Other:
□ None □ Central
□ Window/Wall □
Heat Pump
□ Other:
Type of Heating System
(Check all that apply)
□ None □ Gas
□ Propane □ Electric
□ Radiant □ Oil
□ Wood stove □ Solar
□ Base Board □ Coal
□ Heat pump □ Radiator
□ Other:
□ None
□ Gas
□ Propane □ Electric
□ Radiant □ Oil
□ Wood stove □ Solar
□ Base Board □ Coal
□ Heat
pump □ Radiator
□ Other:
□ None □ Gas
□ Propane □ Electric
□ Radiant □ Oil
□ Wood stove □ Solar
□ Base Board □ Coal
□ Heat pump □ Radiator
□ Other:
□ None □ Gas
□ Propane □ Electric
□ Radiant □ Oil
□ Wood stove □ Solar
□ Base Board □ Coal
□ Heat pump □ Radiator
□ Other:
Location □ Superior □ Similar □ Inferior □ Superior □ Similar □ Inferior □ Superior □ Similar □ Inferior
Lot Characteristics □ Superior □ Similar □ Inferior □ Superior □ Similar □ Inferior □ Superior □ Similar □ Inferior
View □ Superior □ Similar □ Inferior □ Superior □ Similar □ Inferior □ Superior □ Similar □ Inferior
Floor Plan Utility □ Superior □ Similar □ Inferior □ Superior □ Similar □ Inferior □ Superior □ Similar □ Inferior
Ext. Condition’s Appeal □ Superior □ Similar □ Inferior □ Superior □ Similar □ Inferior □ Superior □ Similar □ Inferior
Int. Condition’s Appeal □ Superior □ Similar □ Inferior □ Superior □ Similar □ Inferior □ Superior □ Similar □ Inferior
Overall Rating of Listings as
Compared to Subject
□ Superior □ Similar □ Inferior □ Superior □ Similar □ Inferior □ Superior □ Similar □ Inferior
Listing #1: Date inspected: Comments:
Listing #2: Date inspected: Comments:
COMPETING LISTINGS
Listing #3: Date inspected: Comments:
Copyright © 2008 by Worldwide ERC
®
Rev. 01/07/2009 This Form Expires 12/31/2009 Page 5 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.
ITEM SUBJECT Comparable Sale #1 Comparable Sale #2 Comparable Sale #3
Address, City
MLS #
Proximity to Subject
Original List Price $ $ $ $
Final List Price $ $ $
Sales Price
$ $ $
Seller Concessions
Under Contract Date
Closing Date
Days-on-market (DOM)
from original list date
Previous listing history for last
12 months
Orig. List Price $
Last List Price $
DOM:
Orig. List Price $
Last List Price $
DOM:
Orig. List Price $
Last List Price $
DOM:
Orig. List Price $
Last List Price $
DOM:
Style
Exterior Finish
(Check all that apply)
□ Brick □ Wood
□ Composite □ Stone
□ Aluminum □ Stucco
□ Synthetic Stucco □ Vinyl
□ Hardcoat Stucco
□ Other:
□ Brick □ Wood
□ Composite □ Stone
□ Aluminum □ Stucco
□ Synthetic Stucco □ Vinyl
□ Hardcoat Stucco
□ Other:
□ Brick □ Wood
□ Composite □ Stone
□ Aluminum □ Stucco
□ Synthetic Stucco □ Vinyl
□ Hardcoat Stucco
□ Other:
□ Brick □ Wood
□ Composite □ Stone
□ Aluminum □ Stucco
□ Synthetic Stucco □ Vinyl
□ Hardcoat Stucco
□ Other:
Roof Type
(Check all that apply)
□ Composite □ Slate
□ Tar □ Tile
□ Wood shake □ Tin
□ Asphalt shingle □ Copper
□ Other:
□ Composite □ Slate
□ Tar □ Tile
□ Wood shake □ Tin
□ Asphalt shingle □ Copper
□ Other:
□ Composite □ Slate
□ Tar □ Tile
□ Wood shake □ Tin
□ Asphalt shingle □ Copper
□ Other:
□ Composite □ Slate
□ Tar □ Tile
□ Wood shake □ Tin
□ Asphalt shingle □ Copper
□ Other:
Car Storage/Type
(Check all that apply)
□ None
# of Cars
□ Garage □ Attached
□ Detached
□ Built-in
□ Carport □ Attached
□ Detached
□ Built-in
□ Other:
□ None
# of Cars
□ Garage □ Attached
□ Detached
□ Built-in
□ Carport □ Attached
□ Detached
□ Built-in
□ Other:
□ None
# of Cars
□ Garage □ Attached
□ Detached
□ Built-in
□ Carport □ Attached
□ Detached
□ Built-in
□ Other:
□ None
# of Cars
□ Garage □ Attached
□ Detached
□ Built-in
□ Carport □ Attached
□ Detached
□ Built-in
□ Other:
Year Built
Lot Size
Appx. Gross Living Area Sq. Ft Sq. Ft Sq. Ft Sq. Ft
Above Grade Room Count
Tot.
Brms.
Baths Tot. Brms. Baths Tot. Brms. Baths Tot. Brms. Baths
Basement
(Check all that apply)
□ None □ Partial
□ Slab □ Full
□ Crawl Space Walk-out
□ None □ Partial
□ Slab □ Full
□ Crawl Space Walk-out
□ None □Partial
□ Slab Full
□ Crawl Space Walk-out
□ None □ Partial
□ Slab □ Full
□ Crawl Space Walk-out
Basement Finish
Attic (Check all that apply)
□ Full □ Partial
□ Crawl Space □ None
□ Full □ Partial
□ Crawl Space □ None
□ Full □ Partial
□ Crawl Space □ None
□ Full □ Partial
□ Crawl Space □ None
Attic Access
□ Walkup □ Hatch
□ Pull down steps
□ Walkup □ Hatch
□ Pull down steps
□ Walkup □ Hatch
□ Pull down steps
□ Walkup □ Hatch
□ Pull down steps
Bonus Room
Detached Structures
(Check all that apply)
□ None □ Barn
□ Guest House □ Studio
□ Pool House □ Shed
□ Other:
□ None □ Barn
□ Guest House □ Studio
□ Pool House □ Shed
□ Other:
□ None □ Barn
□ Guest House □ Studio
□ Pool House □ Shed
□ Other:
□ None □ Barn
□ Guest House □ Studio
□ Pool House □ Shed
□ Other:
Deck/Patio
Pool/Spa
Fireplace(s)
Water Supply
□ Public □ Private
□ Community □ Well
□ Public □ Private
□ Community □ Well
□ Public □ Private
□ Community □ Well
□ Public □ Private
□ Community □ Well
Waste Disposal
□ Septic □ Sewer
□ Cesspool
□ Other:
□ Septic □ Sewer
□ Cesspool
□ Other:
□ Septic □ Sewer
□ Cesspool
□ Other:
□ Septic □ Sewer
□ Cesspool
□ Other:
Type of Air Conditioning
(Check all that apply)
□ None □ Central
□ Window/Wall □
Heat Pump
□ Other:
□ None □ Central
□ Window/Wall □
Heat Pump
□ Other:
□ None □ Central
□ Window/Wall □
Heat Pump
□ Other:
□ None □ Central
□ Window/Wall □
Heat Pump
□ Other:
Type of Heating System
(Check all that apply)
□ None □ Gas
□ Propane □ Electric
□ Radiant □ Oil
□ Wood stove □ Solar
□ Base Board □ Coal
□ Heat
pump □ Radiator
□ Other:
□ None □ Gas
□ Propane □ Electric
□ Radiant □ Oil
□ Wood stove □ Solar
□ Base Board □ Coal
□ Heat pump □ Radiator
□ Other:
□ None □ Gas
□ Propane □ Electric
□ Radiant □ Oil
□ Wood stove □ Solar
□ Base Board □ Coal
□ Heat pump □ Radiator
□ Other:
□ None □ Gas
□ Propane □ Electric
□ Radiant □ Oil
□ Wood stove □ Solar
□ Base Board □ Coal
□ Heat pump □ Radiator
□ Other:
Location □ Superior □ Similar □ Inferior □ Superior □ Similar □ Inferior □ Superior □ Similar □ Inferior
Lot Characteristics □ Superior □ Similar □ Inferior □ Superior □ Similar □ Inferior □ Superior □ Similar □ Inferior
View □ Superior □ Similar □ Inferior □ Superior □ Similar □ Inferior □ Superior □ Similar □ Inferior
Floor Plan Utility □ Superior □ Similar □ Inferior □ Superior □ Similar □ Inferior □ Superior □ Similar □ Inferior
Ext. Condition’s Appeal □ Superior □ Similar □ Inferior □ Superior □ Similar □ Inferior □ Superior □ Similar □ Inferior
Int. Condition’s Appeal □ Superior □ Similar □ Inferior □ Superior □ Similar □ Inferior □ Superior □ Similar □ Inferior
Overall Rating of Sales as
Compared to Subject
□ Superior □ Similar □ Inferior □ Superior □ Similar □ Inferior □ Superior □ Similar □ Inferior
Sales #1: Inspected? □ Yes □ No Comments:
Sales #2: Inspected? □ Yes □ No Comments:
COMPARABLE SALES
Sales #3: Inspected? □ Yes □ No Comments:
Copyright © 2008 by Worldwide ERC
®
Rev. 01/07/2009 This Form Expires 12/31/2009 Page 6 of 6
MOST LIKELY
BUYER(S)
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 □ Other:
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?
1.
2.
3.
4.
5.
What are the top five creative ideas you will use in marketing this property keeping in mind the challenges and actions identified above?
1.
2.
3.
4.
5.
MARKETING STRATEGY
Additional Comments:
VALUE
ANALYSIS
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.
(# of days)
File #: Real Estate Firm:
Real Estate Firm Tax ID #: Date of Inspection:
Contact Name: Agent Preparer Name:
SIGNATURES
Contact Signature: Agent Preparer Signature:
Form Specifications
| Fact | Description |
|---|---|
| Purpose and Use | This form allows a real estate broker to conduct a thorough market analysis of a property, focusing on condition, competition, and marketability to estimate its Most Likely Sales Price. It is not a home inspection or an appraisal. |
| State-Specific Disclosures | Brokers are advised to be aware of any state-specific disclosure requirements and include them in the form as appropriate, ensuring compliance with local regulations. |
| Procedural Guidelines | Brokers are instructed to follow the guidelines provided by the requesting company for procedures such as contacting the homeowner, inspecting the property, submitting the report, and providing photos. |
| "As Is" Condition | The Most Likely Sales Price (MLSP) is determined based on the property's current condition, with an expected marketing time not to exceed 120 days unless directed otherwise by the client. |
| Not an Appraisal | The comparative market analysis performed is explicitly mentioned to not align with the Uniform Standards of Professional Appraisal Practice and cannot be used as an appraisal. |
| Inspection and Repair Estimates | The form requires an assessment of the property's condition, including any necessary repairs and improvements with estimated costs, but it does not replace a professional home inspection. |
| Marketing and Financing | Brokers are prompted to list any issues that might affect the property’s insurability, the most probable means of financing for the prospective buyer, and any financing concessions that may need to be made to facilitate the sale. |
Erc Broker Market Analysis: Usage Guidelines
Filling out the ERC Broker Market Analysis form is a crucial step for real estate professionals preparing a comprehensive market analysis and strategy report. This document is instrumental for evaluating a property's condition, competition, and its potential for sale within the market. The goal is to determine the most likely sales price under current market conditions, ensuring that the property is listed at a price that is competitive yet fair, based on an in-depth analysis rather than a simple appraisal. State-specific disclosure requirements must also be considered and incorporated as necessary. Follow these steps methodically to complete the ERC Broker Market Analysis form accurately.
- Start by entering the Information at the top of the form which includes the File #, Homeowner(s) details, Property Address, and contact information.
- Under the Assignment section, fill out the details of the Real Estate Firm and Agent Preparer, including contact information and email addresses.
- Detail the homeowner’s purchase price, date purchased, and list any improvements made by the homeowner.
- Mark whether the subject property is currently listed and provide details of the listing company/agent if applicable.
- Specify the form of ownership, occupant details, and the property type, ticking the appropriate boxes for each category.
- Indicate any personal property that remains with the subject property and classify the subject’s location type.
- For the Location section, check all applicable site and miscellaneous characteristics that apply to the property and note any locational issues that may affect insurability or marketability.
- In the Subject Condition section, inspect and disclose the property’s condition including decor, construction, and any evidence of damage or maintenance issues. List any recommended repairs and improvements with estimated costs.
- Identify the most likely means of financing for the subject property, anticipating any issues that may affect the ability to secure financing.
- Describe the subject neighborhood, specifying the price range, property values trend, average days-on-market, and calculate the months supply of inventory.
- Compare the subject property with competing listings, filling out detailed comparisons for at least three competing listings.
- Choose and compare three comparable sales from the last six months that are similar and relevant to the subject property, detailing the sales information and how they compare in terms of location, lot characteristics, condition, and appeal.
Upon completion of the form, review the information for accuracy and completeness. Ensure that all required state-specific disclosures are included and that the property analysis is conducted in line with the procedural guidelines provided. Submit the report and all necessary photographs to the requesting company as per their guidelines. This thorough analysis will aid in determining the most competitive yet fair market price for the property, considering its current condition and market dynamics.
Your Questions, Answered
What is the Worldwide ERC® Broker’s Market Analysis and Strategy Report?
The Worldwide ERC® Broker’s Market Analysis and Strategy Report is a tool used by real estate brokers to conduct a comprehensive analysis of a property's condition, competition, and marketability. The broker then estimates the most likely sales price of the property based on this analysis. It is important to note that this is not a formal appraisal or home inspection but rather a comparative market analysis.
Who should prepare the Erc Broker Market Analysis form?
Qualified real estate professionals who understand the local market conditions and have experience in evaluating property conditions and market dynamics should prepare the form. The preparer also needs to be knowledgeable about any state-specific disclosure requirements to include them appropriately in the report.
What is the Most Likely Sales Price (MLSP), and how is it determined?
The Most Likely Sales Price (MLSP) refers to the estimated price at which a property is most likely to sell. It is determined by analyzing the property's "as is" condition, market competition, and expected market trends over a marketing time not exceeding 120 days or as directed by the client.
What should be included in the SUBJECT CONDITION section?
The SUBJECT CONDITION section should detail the current state of the property, including décor, construction completeness, any evidence of water damage, structural issues, and any odors or pet damage. It also includes recommended repairs and improvements with estimated costs and any known issues that may affect the property's insurability.
How are competing listings analyzed in the report?
Competing listings are analyzed by comparing their attributes such as address, listing prices, days on the market (DOM), type of exterior and roof, car storage options, year built, lot size, and overall condition to those of the subject property. This helps determine the subject property's market position and competitive edge.
What is the significance of the financing section in the report?
The financing section identifies the most probable means of financing for the subject property and any financing concessions necessary to secure the sale. It also discusses potential issues that might affect the ability to secure financing, reflecting the property's marketability from a financial perspective.
How is the subject neighborhood defined and analyzed?
The subject neighborhood is defined based on the preparer’s judgment, considering factors like the geographic area, type of properties, and market dynamics within that area. The analysis includes property values trends, average days on market, and the absorption rate to provide insight into the local real estate market's health.
How do recommended marketing concessions and incentives fit into the report?
Based on the analysis of comparable and competing listings, the report may recommend marketing concessions and incentives to make the subject property more appealing to potential buyers. This could include seller concessions, pricing strategies, or other incentives to enhance the property’s competitiveness in the market.
What is the role of inspections and disclosures in this analysis?
Inspections and disclosures play a crucial role in identifying any legal, structural, or environmental issues with the property that could affect its insurability, marketability, or price. Required, customary, and additionally recommended inspections are listed along with any required disclosures to ensure transparency and compliance with state laws.
How important are custom comments and observations by the agent or broker?
Custom comments and observations provide personalized insights into the property's unique features or potential challenges, offering valuable context that numbers and checklists alone may not fully convey. These observations can significantly impact the final analysis and recommendations.
Common mistakes
Filling out the Worldwide ERC® Broker's Market Analysis and Strategy Report demands meticulous attention to ensure accuracy and completeness. However, common mistakes can occur, which could significantly impact the analysis' effectiveness and the estimation of the subject property's Most Likely Sales Price (MLSP). Here are seven such mistakes:
- Not inspecting the property thoroughly: Skipping or rushing through the property inspection can lead to underreported issues or overlooked improvements, which are crucial for an accurate assessment.
- Omitting state-specific disclosure requirements: Each state may have unique disclosure mandates that need to be addressed in the analysis. Failure to include these can lead to legal issues or misrepresentation of the property's condition and marketability.
- Incorrectly estimating the MLSP: Overestimating or underestimating the Most Likely Sales Price based on inaccurate or incomplete analysis can lead to setting unrealistic expectations for the homeowners or potential buyers.
- Overlooking locational issues: Not properly assessing or reporting issues related to the property's location, such as proximity to environmental sites or noise pollution, can significantly affect the property's desirability and valuation.
- Failure to compare similar market properties adequately: Inadequate comparison with similar properties in the market area can lead to an inaccurate estimation of the subject property's market position and potential sale price.
- Misjudging market conditions: Not accurately describing the current economic conditions, market trends, or inventory levels within the subject's neighborhood and the broader market area can mislead the report's recipients regarding the property's marketability.
- Incomplete financial information: Omitting key financial details such as anticipated issues affecting the ability to secure financing for the subject property, or inaccurately describing the financing terms can hinder potential sales processes.
To avoid these mistakes, it is essential to conduct a comprehensive and detailed analysis, taking into account the specific requirements of the Worldwide ERC® form, state-specific regulations, and the unique aspects of the property and its market. A careful approach ensures the production of an informative, accurate, and useful Broker's Market Analysis and Strategy Report.
Documents used along the form
When working with the Worldwide ERC® Broker's Market Analysis and Strategy Report, professionals realize the importance of comprehensive documentation in supporting real estate transactions. Such meticulousness ensures that every aspect of the property's marketability and potential challenges are well documented, aiding in making informed decisions. Beyond the core market analysis report, several other documents play a crucial role in painting a full picture of the property's context, condition, and value.
- Home Inspection Report: This document provides a detailed examination of the property's condition. It covers various components including the foundation, roofing, plumbing, electrical systems, and appliances. The aim is to identify any defects or issues that may need repair or may affect the property's value.
- Appraisal Report: An essential document for understanding the property's value, the appraisal report offers an unbiased valuation based on the property’s features, condition, and comparisons with similar properties in the area. This is critical for both setting the selling price and for financing purposes.
- Disclosure Statements: Sellers often provide disclosure statements to inform potential buyers about any known issues or defects with the property that may affect its value or use. This might include previous damages, repairs, environmental hazards, or any additions or improvements made.
- Title Report: This report outlines the property’s ownership history, along with detailing any liens, encroachments, easements, or other restrictions on the property. It's vital for ensuring clear title and for disclosing any factors that might impact the property's use or value.
- Comparative Market Analysis (CMA): Although similar to the ERC Broker’s Market Analysis, a CMA focuses more on comparing the subject property to similar properties in the area that have recently sold, are currently on the market, or were on the market but did not sell. This assists in determining the competitive price for the property based on current market trends.
Utilizing these documents in conjunction with the Worldwide ERC® Broker’s Market Analysis and Strategy Report equips real estate professionals with a thorough understanding of the property and its positioning in the market. Each document contributes a piece to the puzzle, enabling a strategic approach to pricing, marketing, and negotiating the sale of the property. The collective insights garnered from these documents serve as a foundation for making well-informed, strategic decisions that align with the interests of both sellers and buyers.
Similar forms
Comparative Market Analysis (CMA) Report: Similar to the ERC Broker Market Analysis form, a CMA is developed by real estate professionals to help sellers set listing prices for their properties or buyers to make competitive offers. Both documents analyze comparable homes sold recently, trends in the market, and provide insights on property pricing.
Real Estate Appraisal Report: Although the ERC form specifies it's not an appraisal, both documents assess a property's market value based on location, condition, and comparable sales. The main difference is that an appraisal is usually more formal and can be used in loan processes.
Listing Agreement: This contract between a homeowner and a real estate agent gives the agent the rights to market and sell the home. The ERC form serves a similar goal of facilitating the sale, providing detailed information to strategize the sales approach effectively.
Property Inspection Report: While the ERC form is not a home inspection report, both involve visual examination of a property. The ERC Broker Market Analysis mentions property conditions and improvements, which can also be found in a detailed inspection report.
Homeowners' Association (HOA) Disclosure: This document details the rules, fees, and regulations of living in an HOA community. The ERC form requires information about HOA fees and rules affecting the marketability of a property, making these documents complementary in understanding property obligations.
Property Disclosure Form: Sellers use this form to disclose the condition of their property to potential buyers. The ERC form includes similar disclosures about the property's condition, repairs, and other material facts that could influence a buyer's decision.
Real Estate Offer and Contract: Once a buyer decides to make an offer on a property, this legal document outlines the terms of the sale. Insights gleaned from the ERC Broker Market Analysis can directly influence the offer details, such as price and contingencies.
Market Trends Report: This analysis provides an overview of the real estate market's health, including supply and demand metrics. The ERC form includes similar information, such as inventory levels and average days on market, to help assess a property's marketability.
Pre-listing Presentation: Real estate agents prepare this to win listing agreements from homeowners. It often includes data similar to what's found in the ERC form, such as comparative market analysis and marketing strategies, to convince the seller of the agent’s marketing plan.
Real Estate Investment Analysis: Investors use this to evaluate the potential profitability of a property. Like the ERC Broker Market Analysis, it considers market trends, property condition, and comparable sales data to estimate the property's value and investment potential.
Dos and Don'ts
When filling out the ERC Broker Market Analysis form, it's important to follow certain guidelines to ensure the report is accurate and useful. Here are things you should and shouldn't do:
Do:
- Review the purpose of the form carefully to understand its objectives, such as analyzing the property's condition, competition, and marketability to estimate the Most Likely Sales Price.
- Follow the procedural guidelines strictly, including contacting the homeowner, inspecting the property, submitting the report, and providing photos as per the requesting company's instructions.
- Be thorough and honest in your analysis, ensuring you consider all aspects of the property and its surroundings that could affect its marketability and value.
- Include state-specific disclosure requirements if applicable, to comply with local laws and regulations.
- Estimate the Most Likely Sales Price based on the property's "as is" condition and a marketing time not exceeding 120 days or as directed by the client.
- Check and fill out all sections relevant to the subject property's details, including improvements made, listing history, form of ownership, type and location characteristics.
- Provide detailed comments and explanations for checked boxes to offer a comprehensive view of the property's condition and factors affecting its sale.
Don't:
- Assume it's a formal appraisal or home inspection. The comparative market analysis is not performed in accordance with the Uniform Standards of Professional Appraisal Practice and should not be used as such.
- Omit any known information that can affect the property’s marketability or value, including locational issues, property condition, and potential repairs and improvements.
- Ignore the importance of including photographs as they provide visual evidence of the property's condition and characteristics.
- Forget to list all necessary inspections and disclosures that are required or recommended for the subject property.
- Leave out any details regarding the neighborhood’s and broader market area’s characteristics, as they play a crucial role in the marketability of the property.
- Exclude information about competing listings and comparable sales; this data is vital for making accurate price estimations.
- Rush through the form without verifying all details. Accuracy and attention to detail can significantly impact the usefulness of the report.
By adhering to these dos and don'ts, you can contribute to a well-rounded and effective market analysis that serves the needs of all parties involved.
Misconceptions
Understanding the intricacies of real estate documents can often lead to misconceptions, particularly with specialized forms like the Worldwide ERC® Broker's Market Analysis and Strategy Report. This report plays a crucial role in realistic property valuations, yet several myths surround its use and purpose. Addressing these misconceptions is essential for professionals navigating the real estate market. Here are five common misunderstandings about the ERC Broker Market Analysis form:
- It's an Appraisal: One of the most enduring misconceptions is that the ERC Broker Market Analysis form serves as an official appraisal. However, this document explicitly states that it is not an appraisal and does not follow the Uniform Standards of Professional Appraisal Practice. It's designed for brokers to provide an estimated sale price based on a diligent analysis, not to offer a formal appraisal.
- It Guarantees Sales Price: Another common belief is that the Most Likely Sales Price (MLSP) determined by the form guarantees the price at which the property will sell. In reality, the MLSP is an educated guess based on current market conditions and the property's "as is" condition. The actual sale price can vary due to negotiations, market changes, or other factors unforeseen at the time of analysis.
- It’s Equal to a Home Inspection: Some people confuse the ERC Broker Market Analysis form with a home inspection report. While the broker's market analysis does consider the condition of the property, it does not provide the in-depth evaluation of a home's structure, systems, and components that a professional home inspection does.
- It's Only Necessary for Corporate Moves: Though widely used in the context of employee relocations, the usefulness of the ERC Broker Market Analysis form isn't limited to corporate moves. Any seller or real estate professional seeking a detailed market analysis could benefit from the insights it provides, making it a versatile tool beyond its original intent.
- It Requires No Disclosures: A significant misunderstanding is the belief that the form eliminates the need for state-specific disclosures. On the contrary, preparers are reminded within the form to be aware of and include any state-specific disclosure requirements as appropriate, ensuring compliance and reducing the risk of legal issues.
In summary, while the Worldwide ERC® Broker's Market Analysis and Strategy Report is a powerful tool for estimating a property's most likely sales price, understanding its purpose and limitations is crucial. Dispelling common misconceptions allows real estate professionals to utilize the form effectively, ensuring accurate, comprehensive analyses tailored to the unique challenges of the market.
Key takeaways
When filling out and using the Worldwide ERC® Broker's Market Analysis and Strategy Report, it is critical to understand its main objectives and requirements. Here are six key takeaways to guide you through this process:
- The form aims to assist real estate brokers in conducting a thorough analysis of a property's condition, competition, and marketability to estimate its Most Likely Sales Price (MLSP).
- It is important to note that this analysis is neither a home inspection nor an appraisal. The comparative market analysis performed does not comply with the Uniform Standards of Professional Appraisal Practice and should not be considered an appraisal.
- Brokers must be mindful of any state-specific disclosure requirements that need to be included in the form. This ensures the report meets local regulatory standards and provides all necessary information for informed decision-making.
- The Most Likely Sales Price determined should reflect the property's condition "as is" and assumes a market time not exceeding 120 days to a contract of sale unless otherwise directed by the client.
- Completing the form requires detailed information about the subject property, including homeowner improvements, listing status, and any known issues that may affect the property's insurability or marketability. Accurate and comprehensive data collection is crucial for the reliability of the analysis.
- Recommendations for required, customary, and additionally recommended repairs, improvements, and inspections are part of the report. These recommendations help identify potential areas for increasing the property's appeal and marketability.
By adhering to these key points, real estate brokers can create a detailed and accurate Broker's Market Analysis and Strategy Report that serves the needs of both the homeowner and potential buyers efficiently.
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