Contents
The ERC Broker Market Analysis form serves as an essential tool for real estate brokers to evaluate properties comprehensively. It facilitates a diligent assessment of the property's current condition, competitive landscape, and its potential for future marketability. With a specific focus on estimating the "Most Likely Sales Price" (MLSP) based on the property’s "as is" condition and a planned marketing period, this form provides valuable insights for both brokers and homeowners. Importantly, it's crucial to note that this form is not an appraisal and should not be used as one, as it does not adhere to the Uniform Standards of Professional Appraisal Practice. Additionally, brokers preparing this form must consider any state-specific disclosure requirements. The process outlined in the form includes various procedural guidelines, such as contacting homeowners, inspecting properties, and submitting observations and photographs. Through a comprehensive set of fields, the form collects key information, including details about ownership, property improvements, market conditions, and neighborhood characteristics, alongside recommendations for repairs that could enhance the property’s appeal. This thorough approach enables brokers to not only price properties accurately but also to strategize effectively for their sale.
Sample - Erc Broker Market Analysis Form
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 Information
| Fact Name | Description |
|---|---|
| Purpose of the Report | The Erc Broker Market Analysis helps brokers analyze property conditions, competition, and marketability to estimate its Most Likely Sales Price (MLSP). |
| Not an Appraisal | This analysis is not a home inspection or appraisal. It does not comply with the Uniform Standards of Professional Appraisal Practice. |
| Disclosure Requirements | Preparers must acknowledge state-specific disclosure needs and incorporate them appropriately into the form. |
| Market Condition Assessment | Inspectors must report the property's current condition and any improvements made, along with potential issues affecting insurability. |
| Marketing Time Frame | The MLSP estimation is based on an “as is” condition and assumes a marketing duration of 120 days or as directed by the client. |
| Property Information | Essential details include file number, homeowner(s), property address, and all relevant contact information for both parties. |
| Financing Options | The form identifies probable financing methods available for the property, such as FHA, VA, or conventional loans, along with any expected financing hurdles. |
| Neighborhood Analysis | A thorough assessment is required to determine the neighborhood's characteristics, including price ranges, market trends, and major corporations impacting the area. |
Detailed Guide for Filling Out Erc Broker Market Analysis
When preparing to fill out the ERC Broker Market Analysis form, it's essential to have all necessary information ready. This will help you complete the form efficiently and accurately. The details you'll gather include property specifications, homeowner information, and any relevant observations from your property inspection. Follow these steps to ensure you cover everything you need.
- Begin by filling in the INFORMATION section, which includes the file number, homeowner(s) names, property address, and contact details.
- Complete the section titled ASSIGNMENT with details about the real estate firm, including the firm’s name, contact person, email, and address.
- In the SUBJECT section, provide information about the property, including occupancy status, improvements made, and any personal property that remains.
- Indicate the SUBJECT CONDITION INSPECTIONS/DISCLOSURES, checking any observed issues such as water damage or incomplete construction and provide explanations for each observation.
- Estimate the recommended repairs needed in the INTERIOR ITEMS R&I ESTIMATES and EXTERIOR ITEMS R&I ESTIMATES sections, along with costs for each item.
- List required disclosures and the most probable means of financing in the FINANCING section.
- Analyze the SUBJECT NEIGHBORHOOD by identifying the neighborhood's boundaries, property values, and market activity, noting any economic conditions affecting marketability.
- Document comparable sales and competing listings by entering details of similar properties, their prices, and any seller concessions in the COMPARABLE SALES section.
- Finally, go through the MARKET section to describe corporations impacting the area, current economic conditions, and any necessary marketing concessions for your property.
Once you complete the form, review your entries for accuracy. Having clear, concise information ensures the analysis reflects the property’s true value and market conditions.
Obtain Answers on Erc Broker Market Analysis
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What is the purpose of the ERC Broker Market Analysis Form?
The ERC Broker Market Analysis Form serves as a tool for real estate brokers to assess the current condition, competition, and potential marketability of a property. By using this form, brokers are able to conduct a thorough analysis, ultimately leading to a well-informed estimate of the property's Most Likely Sales Price (MLSP). It is important to clarify that this document is not a home inspection or an appraisal and should not be used as such.
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How does the broker determine the Most Likely Sales Price (MLSP)?
The Most Likely Sales Price is derived from an analysis of the property's condition while considering its market context, including competitive properties nearby. Brokers evaluate the property in its "as is" state and project that it will be sold within a marketing period not exceeding 120 days, unless otherwise directed. Factors such as the general market trends, the property’s unique features, and local competition are all considered when calculating the MLSP.
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What information is required when filling out the form?
Several pieces of information are necessary for the completion of the ERC Broker Market Analysis Form, including:
- Property details such as address, homeowner information, and current market conditions.
- Details on any improvements made by the homeowner, including the date of purchase and any personal property remaining with the sale.
- Descriptions of the property, including its type, ownership form, and specific characteristics that may impact its value.
Each section of the form addresses different attributes of the property, and it is crucial to fill it out comprehensively to ensure an accurate market analysis.
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Are there any legal considerations to keep in mind while using this form?
Yes, brokers must be aware of state-specific disclosure requirements. It's vital to include any relevant disclosures to conform with legal standards in their region. Furthermore, since this report is not an official appraisal, it is essential for brokers to clearly communicate this limitation to all relevant parties involved in the property sale.
Common mistakes
Filling out the ERC Broker Market Analysis form can be a straightforward process, but several common mistakes can lead to inaccurate assessments. One major error occurs when the preparer fails to double-check the information provided about the property. Inaccurate details regarding the homeowner, property address, or the current sale price can lead to significant discrepancies in the market analysis.
Another frequent mistake is not adequately describing the condition of the property. For example, if a preparer overlooks problems like water damage or structural issues, the estimated sales price may not reflect the true market potential of the home. Such oversights can mislead potential buyers and affect the seller’s expectations.
People also often skip the section on improvements made by the homeowner. This omission can be critical, especially if significant renovations have increased the home's value. Without this information, an analysis may undervalue the property, which could discourage potential buyers.
In addition, failing to provide adequate commentary on the neighborhood and market conditions can weaken the analysis. The context in which a property exists can be as important as its physical characteristics. If a preparer does not mention factors like local economic trends or schools in the area, the report may not fully inform potential buyers.
A common pitfall involves misunderstanding the reporting requirements based on the state. Each state has different disclosure laws, and missing this can lead to compliance issues. It’s critical for preparers to familiarize themselves with their state’s regulations and ensure they include necessary information regarding property condition and marketability.
Another issue is neglecting the section regarding financing options. A detailed understanding of financing is essential in making the property appealing. If financing avenues are not adequately examined, it can limit the pool of potential buyers. Comments about HOA fees and special assessments are often glossed over, which can also influence a buyer’s decision.
Moreover, ignoring comp listings in the area is another mistake. Not utilizing comparable sales can lead to inflated or deflated pricing estimates for the subject property. Without this data, the analysis lacks a solid basis, making it less useful.
Lastly, preparers sometimes forget to provide conclusive advice or recommendations. A clear recommendation can guide sellers in setting a realistic price, thus enhancing the chances of a successful sale. Failing to do so can keep buyers in the dark about the property's true value.
Documents used along the form
The ERC Broker Market Analysis form provides crucial information for assessing a property’s condition and marketability. To support this analysis, several other forms and documents are often utilized. Each serves a distinct purpose in the overall assessment process, helping real estate professionals make informed decisions regarding property value and sales strategy.
- Listing Agreement: This document formalizes the relationship between the seller and the real estate agent. It outlines the terms of the sale, including the listing price, duration of the listing, and the commission to be paid to the broker.
- Comparative Market Analysis (CMA): A CMA provides an estimate of a property’s value based on the sale prices of similar properties in the area. It is an essential tool for real estate agents during the pricing process.
- Property Disclosure Statement: Sellers are often required to complete this form, detailing any known issues affecting the property’s condition and value. It informs potential buyers about the property’s history related to repairs, defects, and environmental concerns.
- Inspection Report: This report details the professional inspection of a property, highlighting its condition. It covers structural, mechanical, and safety aspects, and may identify required repairs before sale.
- Loan Pre-Approval Letter: Provided by a lender, this letter indicates that a buyer is pre-approved for a mortgage up to a specified amount. This document enhances the buyer's position when making an offer on a property.
- Title Report: This document outlines the legal ownership of a property and identifies any liens or encumbrances. It ensures that the seller has the right to convey ownership and that the buyer is aware of any potential issues.
- Listing Presentation: This comprehensive document prepared by agents showcases their marketing plan and strategies to attract buyers. It often includes market data, marketing materials, and a proposed pricing strategy.
- Purchase Agreement: Upon agreeing on a price, this formal contract binds both the seller and buyer to the transaction, outlining all terms and conditions under which the sale will occur.
These forms and documents collectively provide a clear view of the real estate landscape, aiding brokers, buyers, and sellers in making informed decisions during a property transaction. Each document plays a vital role in ensuring transparency and compliance in real estate dealings.
Similar forms
- Comparative Market Analysis (CMA): Like the ERC Broker Market Analysis, a CMA provides an estimate of a property's value by comparing it to similar properties that have recently sold, under contract, or are currently for sale. Both documents focus on market conditions, property characteristics, and local trends.
- Property Inspection Report: Both documents evaluate the condition of a property, noting any repairs or issues. However, the Property Inspection Report offers a more detailed look at structural and mechanical systems, while the ERC form is more focused on marketability and pricing.
- Appraisal Report: An appraisal provides a professional estimate of a property's market value, conducted by a licensed appraiser. The ERC Broker Market Analysis, on the other hand, helps brokers estimate a price based on market conditions and competitive listings without the formal appraisal standards.
- Listing Agreement: Similar to the ERC form, a Listing Agreement outlines details about the property, pricing strategy, and marketing plan. While both are crucial in sales strategy, the Listing Agreement is legally binding whereas the ERC form functions more as an internal evaluation tool.
- Market Study Report: Both documents analyze market trends and conditions affecting a property's value. However, a Market Study Report usually encompasses a wider geographical area and may include demographic data and economic indicators, while the ERC report focuses on a single property.
- Seller Disclosure Statement: Both documents inform interested parties about the property. The Seller Disclosure Statement specifically details any known issues or defects, whereas the ERC form focuses on enhancing a property’s marketability through comparative analysis.
- Municipal Guidelines and Requirements Report: The ERC Broker Market Analysis takes into account any local regulations that may affect property insurability or marketability. Municipal guidelines often detail zoning, permitted uses, and environmental regulations that can influence property values.
- Investment Property Analysis: Similar to the ERC form, this analysis evaluates a property's potential return on investment, often considering rental income and expenses. The ERC form, however, is more tailored to residential sales and market conditions.
- Neighborhood Analysis Report: Both documents assess the characteristics of a neighborhood to determine property values. However, the Neighborhood Analysis Report emphasizes broader community data such as nearby amenities, schools, and crime rates, while the ERC focuses on specific property comparisons.
Dos and Don'ts
When filling out the Erc Broker Market Analysis form, consider the following dos and don’ts:
- Do: Clearly define the neighborhood you are analyzing, using specific boundaries or landmarks.
- Do: Provide accurate and detailed descriptions of any current property conditions and improvements.
- Do: Include any relevant state-specific disclosure requirements that must be adhered to.
- Do: Ensure you follow the company's guidelines for inspecting the property and submitting reports.
- Don’t: Assume the analysis can be used as an appraisal; it should not be presented as such.
- Don’t: Leave out any known issues that may affect the property’s marketability or insurability.
- Don’t: Generalize the property type; specify its exact classification to reduce ambiguity.
- Don’t: Forget to list all required inspections and disclose any relevant features or conditions.
Misconceptions
- Misconception 1: The ERC Broker Market Analysis form is the same as a home inspection.
- Misconception 2: The Most Likely Sales Price (MLSP) provided is an official appraisal.
- Misconception 3: The analysis guarantees a sale within 120 days.
- Misconception 4: This report is applicable in all states without modifications.
- Misconception 5: The form replaces real estate agents’ expertise.
- Misconception 6: This analysis considers only the current condition of the property.
- Misconception 7: The form is too complex for average homeowners to understand.
- Misconception 8: The ERC Broker Market Analysis form is optional for brokers.
- Misconception 9: All properties will have the same evaluation criteria.
This form is designed to perform a market analysis, not to inspect the condition of the home. It does not evaluate structural integrity or compliance with building codes.
The MLSP is an estimate based on comparative market analysis. It is not an appraisal and should not be treated as one.
The 120-day timeframe for marketing the property is an estimate, not a guarantee. Market conditions can lead to different outcomes.
Each state may have specific legal disclosure requirements that must be included. Users need to adapt the form based on their local regulations.
While the form aids in providing data, it does not replace the professional judgment and expertise of a real estate agent.
The report also examines competition, market trends, and future marketability, offering a holistic view of the property.
The language and structure of the form aim to be straightforward. It is accessible for readers without a real estate background.
Using this form is considered best practice for brokers who want to provide a thorough property analysis.
Each property has unique characteristics that affect its marketability. Evaluations should reflect these individual aspects.
Key takeaways
When using the ERC Broker Market Analysis form, several key considerations should be kept in mind:
- Purpose of the Report: The primary aim of this report is to provide a thorough analysis of the property's condition, its competition, and its future marketability. Brokers are expected to estimate the Most Likely Sales Price based on this data.
- Not an Appraisal: It is important to note that this report is not a home inspection or an appraisal. It does not comply with the Uniform Standards of Professional Appraisal Practice, and it should not be used as such.
- State-Specific Requirements: Preparers should be aware of and incorporate any specific state disclosure requirements that may apply when filling out the form.
- Contact Guidelines: Brokers should follow the guidelines provided by the requesting company when contacting homeowners, inspecting properties, and submitting reports.
- Market Analysis Focus: The analysis primarily focuses on the "as is" condition of the property and estimates the time needed to reach a contract of sale, which should not exceed 120 days unless directed otherwise by the client.
- Identifying Neighborhood Trends: The form encourages brokers to assess not only the subject property but also the broader market area, identifying trends that may affect marketability such as competition, economic conditions, and local amenities.
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