Erc Broker Market Analysis PDF Template

The Worldwide ERC® Broker’s Market Analysis and Strategy Report is a vital tool for real estate brokers. It assists in evaluating a property's condition, its competitive landscape, and potential marketability. By completing this form, brokers estimate the property's Most Likely Sales Price (MLSP), ensuring informed decisions in real estate transactions.

Ready to dive deeper into the analysis? Fill out the form by clicking the button below!

Overview

The Worldwide ERC® Broker’s Market Analysis and Strategy Report offers real estate brokers a valuable tool for understanding the dynamics of a specific property and its market. Designed for a thorough analysis, the form helps assess the property’s condition, market competition, and potential future value. By utilizing this form, a broker can estimate what is known as the Most Likely Sales Price (MLSP), but it’s important to note that this report is not an appraisal or a home inspection. Instead, it serves as a comparative market analysis, measuring the property 'as is' and anticipating a marketing timeline of up to 120 days unless otherwise directed by the client. To ensure accuracy, brokers should be mindful of any specific state disclosure requirements. Key aspects included in the form range from detailed property descriptions and improvements to neighborhood characteristics and financing options. Also, it prompts brokers to identify potential issues affecting insurability and marketability, ensuring a complete picture is painted for potential buyers. The form requires the broker to summarize important statistics related to the subject property, competing listings, and the overall market, making it a comprehensive analysis tool for real estate professionals.

Erc Broker Market Analysis Preview

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 #:

City, State, Zip:

Fax #:

ASSIGNMENT

Real Estate Firm:

Contact Name:

e-mail:

Real Estate Firm Address:

Phone #:

City, State, Zip:

Fax #:

Agent Preparer:

Phone #:

Homeowner’s purchase price: $

Date purchased:

INFORMATION

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
SUBJECT	□ 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:

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	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:
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:

Rev. 01/07/2009

This Form Expires 12/31/2009

Page 2 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:

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

□ 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: $

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)

% in past

months

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.

Rev. 01/07/2009

This Form Expire 12/31/2009

Page 3 of 6

COMPETING LISTINGS

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

Orig. List Price $

Last List Price $

Last List Price

12 months

DOM:

Style

□ Brick

□ Wood

□ Brick

□ Wood

□ Brick

□ Wood

□ Brick

□ Wood

□ Composite

□ Stone

□ Composite

□ Stone

□ Composite

□ Stone

□ Composite

□ Stone

Exterior Finish

□ Aluminum

□ Stucco

□ Aluminum

□ Stucco

□ Aluminum

□ Stucco

□ Aluminum

□ Stucco

(Check all that apply)

□ Synthetic Stucco

□ Vinyl

□ Synthetic Stucco

□ Vinyl

□ Synthetic Stucco

□ Vinyl

□ Synthetic Stucco

□ Vinyl

□ Hardcoat Stucco

□ Other:

□ Composite

□ Slate

□ Composite

□ Slate

□ Composite

□ Slate

□ Composite

□ Slate

Roof Type

□ Tar

□ Tile

□ Tar

□ Tile

□ Tar

□ Tile

□ Tar

□ Tile

□ Wood shake

□ Tin

□ Wood shake

□ Tin

□ Wood shake

□ Tin

□ Wood shake

□ Tin

(Check all that apply)

□ Asphalt shingle

□ Copper

□ Asphalt shingle

□ Copper

□ Asphalt shingle

□ Copper

□ Asphalt shingle

□ Copper

□ Other:

□ None

□ Garage

# of Cars

□ Garage

# of Cars

□ Garage

# of Cars

□ Garage

# of Cars

□ Attached

Car Storage/Type

□ Detached

□ Built-in

(Check all that apply)

□ Carport

□ Attached

□ Detached

□ Other:

□ Built-in

□ Other:

□ Built-in

□ Other:

□ Built-in

□ Other:

□ Built-in

Year Built

Lot Size

Appx. Gross Living Area

Sq. Ft

Above Grade Room Count

Tot

Brms.

Baths

Tot.

Brms.

Baths

Tot.

Brms.

Baths

Tot.

Brms.

Baths

Basement

□ None

□ Partial

□ None

□ Partial

□ None

□ Partial

□ None

□ Partial

□ SLAB

□ Full

□ SLAB

□ Full

□ SLAB

□ Full

□ SLAB

□ Full

(Check all that apply)

□ Crawl Space

WALK-OUT

□ Crawl Space

WALK-OUT

□ Crawl Space

WALK-OUT

□ Crawl Space

WALK-OUT

Basement Finish

□ None

□ Partial

□ None

□ Partial

□ None

□ Partial

□ None

□ Partial

Attic (Check all that apply)

□ Crawl Space

□ Full

□ Crawl Space

□ Full

□ Crawl Space

□ Full

□ Crawl Space

□ Full

Attic Access

□ Walkup

□ Hatch

□ Walkup

□ Hatch

□ Walkup

□ Hatch

□ Walkup

□ Hatch

□ Pull down steps

Bonus Room

□ None

□ Barn

□ None

□ Barn

□ None

□ Barn

□ None

□ Barn

Detached Structures

□ Guest House

□ Studio

□ Guest House

□ Studio

□ Guest House

□ Studio

□ Guest House

□ Studio

(Check all that apply)

□ Pool House

□ Shed

□ Pool House

□ Shed

□ Pool House

□ Shed

□ Pool House

□ Shed

□ Other:

Deck/Patio

Pool/Spa

Fireplace(s)

□ Public

□ Private

□ Public

□ Private

□ Public

□ Private

□ Public

□ Private

Water Supply

□ Community

□ Well

□ Community

□ Well

□ Community

□ Well

□ Community

□ Well

□ Septic

□ Sewer

□ Septic

□ Sewer

□ Septic

□ Sewer

□ Septic

□ Sewer

Waste Disposal

□ Cesspool

□ Other:

Type of Air Conditioning

□ None

□ Central

□ None

□ Central

□ None

□ Central

□ None

□ Central

□ Window/Wall

□ Heat Pump

□ Window/Wall

□ Heat Pump

□ Window/Wall

□ Heat Pump

□ Window/Wall

□ Heat Pump

(Check all that apply)

□ Other:

□ None

□ Gas

□ None

□ Gas

□ None

□ Gas

□ None

□ Gas

□ Propane

□ Electric

□ Propane

□ Electric

□ Propane

□ Electric

□ Propane

□ Electric

Type of Heating System

□ Radiant

□ Oil

□ Radiant

□ Oil

□ Radiant

□ Oil

□ Radiant

□ Oil

□ Wood stove

□ Solar

□ Wood stove

□ Solar

□ Wood stove

□ Solar

□ Wood stove

□ Solar

(Check all that apply)

□ Base Board

□ Coal

□ Base Board

□ Coal

□ Base Board

□ Coal

□ Base Board

□ Coal

□ Heat pump

□ Radiator

□ Heat pump

□ Radiator

□ Heat pump

□ Radiator

□ 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

□ Superior

□ Similar

□ Inferior

□ Superior

□ Similar

□ Inferior

□ Superior

□ Similar

□ Inferior

Compared to Subject

Listing #1: Date inspected:

Comments:

Listing #2: Date inspected:

Comments:

Listing #3: Date inspected:

Comments:

Rev. 01/07/2009

This Form Expires 12/31/2009

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

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

Orig. List Price $

Last List Price $

12 months

DOM:

Style

□ Brick

□ Wood

□ Brick

□ Wood

□ Brick

□ Wood

□ Brick

□ Wood

□ Composite

□ Stone

□ Composite

□ Stone

□ Composite

□ Stone

□ Composite

□ Stone

Exterior Finish

□ Aluminum

□ Stucco

□ Aluminum

□ Stucco

□ Aluminum

□ Stucco

□ Aluminum

□ Stucco

(Check all that apply)

□ Synthetic Stucco

□ Vinyl

□ Synthetic Stucco

□ Vinyl

□ Synthetic Stucco

□ Vinyl

□ Synthetic Stucco

□ Vinyl

□ Hardcoat Stucco

□ Other:

□ Composite

□ Slate

□ Composite

□ Slate

□ Composite

□ Slate

□ Composite

□ Slate

Roof Type

□ Tar

□ Tile

□ Tar

□ Tile

□ Tar

□ Tile

□ Tar

□ Tile

□ Wood shake

□ Tin

□ Wood shake

□ Tin

□ Wood shake

□ Tin

□ Wood shake

□ Tin

(Check all that apply)

□ Asphalt shingle

□ Copper

□ Asphalt shingle

□ Copper

□ Asphalt shingle

□ Copper

□ Asphalt shingle

□ Copper

□ Other:

□ None

□ Garage

# of Cars

□ Garage

# of Cars

□ Garage

# of Cars

□ Garage

# of Cars

□ Attached

Car Storage/Type

□ Detached

□ Built-in

(Check all that apply)

□ Carport

□ Attached

□ Detached

□ Other:

□ Built-in

□ Other:

□ Built-in

□ Other:

□ Built-in

□ Other:

□ Built-in

Year Built

Lot Size

Appx. Gross Living Area

Sq. Ft

Above Grade Room Count

Tot.

Brms.

Baths

Tot.

Brms.

Baths

Tot.

Brms.

Baths

Tot.

Brms.

Baths

Basement

□ None

□ Partial

□ None

□ Partial

□ None

□Partial

□ None

□ Partial

□ SLAB

□ Full

□ SLAB

□ Full

□ SLAB

Full

□ SLAB

□ Full

(Check all that apply)

□ Crawl Space

WALK-OUT

□ Crawl Space

WALK-OUT

□ Crawl Space

WALK-OUT

□ Crawl Space

WALK-OUT

Basement Finish

□ Full

□ Partial

□ Full

□ Partial

□ Full

□ Partial

□ Full

□ Partial

Attic (Check all that apply)

□ Crawl Space

□ None

□ Crawl Space

□ None

□ Crawl Space

□ None

□ Crawl Space

□ None

Attic Access

□ Walkup

□ Hatch

□ Walkup

□ Hatch

□ Walkup

□ Hatch

□ Walkup

□ Hatch

□ Pull down steps

Bonus Room

□ None

□ Barn

□ None

□ Barn

□ None

□ Barn

□ None

□ Barn

Detached Structures

□ Guest House

□ Studio

□ Guest House

□ Studio

□ Guest House

□ Studio

□ Guest House

□ Studio

(Check all that apply)

□ Pool House

□ Shed

□ Pool House

□ Shed

□ Pool House

□ Shed

□ Pool House

□ Shed

□ Other:

Deck/Patio

Pool/Spa

Fireplace(s)

Water Supply

□ Public

□ Private

□ Public

□ Private

□ Public

□ Private

□ Public

□ Private

□ Community

□ Well

□ Community

□ Well

□ Community

□ Well

□ Community

□ Well

□ Septic

□ Sewer

□ Septic

□ Sewer

□ Septic

□ Sewer

□ Septic

□ Sewer

Waste Disposal

□ Cesspool

□ Other:

Type of Air Conditioning

□ None

□ Central

□ None

□ Central

□ None

□ Central

□ None

□ Central

□ Window/Wall

□ Heat Pump

□ Window/Wall □ Heat Pump

(Check all that apply)

□ Other:

□ None

□ Gas

□ None

□ Gas

□ None

□ Gas

□ None

□ Gas

□ Propane

□ Electric

□ Propane

□ Electric

□ Propane

□ Electric

□ Propane

□ Electric

Type of Heating System

□ Radiant

□ Oil

□ Radiant

□ Oil

□ Radiant

□ Oil

□ Radiant

□ Oil

□ Wood stove

□ Solar

□ Wood stove

□ Solar

□ Wood stove

□ Solar

□ Wood stove

□ Solar

(Check all that apply)

□ Base Board

□ Coal

□ Base Board

□ Coal

□ Base Board

□ Coal

□ Base Board

□ Coal

□ Heat pump

□ Radiator

□ Heat pump

□ Radiator

□ Heat pump

□ Radiator

□ 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

□ Superior

□ Similar

□ Inferior

□ Superior

□ Similar

□ Inferior

□ Superior

□ Similar

□ Inferior

Compared to Subject

Sales #1: Inspected? □ Yes

□ No Comments:

Sales #2: Inspected?

□Yes

□ No Comments:

Sales #3: Inspected?

□Yes

□ No Comments:

Rev. 01/07/2009

This Form Expires 12/31/2009

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	□ Other:

What are the three - five challenges to getting this property sold?

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.
	(# of days)

File #:	Real Estate Firm:

Real Estate Firm Tax ID #:	Date of Inspection:

Contact Name:	Agent Preparer Name:

Contact Signature:	Agent Preparer Signature:

Rev. 01/07/2009

This Form Expires 12/31/2009

Page 6 of 6

↓ Erc Broker Market Analysis

File Properties

Fact Name	Fact Detail
Purpose	The Erc Broker Market Analysis form allows real estate brokers to analyze a property's condition and marketability.
Distinction from Appraisal	This form is not an appraisal and must not be used as one. It does not comply with professional appraisal standards.
State-Specific Requirements	Preparers should be aware of state-specific disclosure requirements and incorporate them into the analysis as needed.
Most Likely Sales Price	The report estimates the Most Likely Sales Price based on current property condition and market conditions within 120 days.
Inspections	Required inspections should be listed, including any municipal qualifications, environmental inspections, and customary checks.
Marketing Time	The expected marketing time for property sales is capped at 120 days unless directed otherwise by the client.
Financing Considerations	Identify potential financing types, including FHA, VA, or conventional loans, and any expected challenges for securing financing.
Expiration	The version of this form is valid until December 31, 2009, as indicated in the copyright notice.

Instructions on Utilizing Erc Broker Market Analysis

Completing the ERC Broker Market Analysis form requires careful attention to detail and accuracy. The information collected will support a thorough examination of the property and its market context. Following the outlined steps will ensure that all necessary details are included for an effective analysis.

Gather necessary information: Collect relevant data about the property, the homeowner, and the requesting company.
Complete the INFORMATION section: Fill in the file number, homeowner's name, property address, and contact details for both the homeowner and the requesting company.
Fill out the ASSIGNMENT section: Provide details about the real estate firm, contact person, and any other relevant information regarding the assignment.
Document improvements and current status: Note any enhancements made to the property and indicate whether the property is currently listed for sale.
Assess subject characteristics: Evaluate the property's condition, view, location issues, and lot characteristics.
Identify site characteristics: Check applicable site attributes such as street access, street maintenance, and miscellaneous concerns that may influence marketability.
Record condition inspections and disclosures: Indicate any observable issues, recommend repairs, and estimate associated costs.
Outline financing aspects: Specify potential financing methods, expected concessions, and categorize any issues that might affect securing financing.
Describe neighborhood dynamics: Define the subject neighborhood and provide relevant market statistics, including property values and average days on the market.
Gather comparable listings: Collect data on similar properties that are actively listed or have recently sold in the same market area.
Summarize competing listings: Complete the section for competing listings by comparing key features such as prices and features.
Finalize the analysis: Review all completed sections to ensure accuracy and clarity before submitting the report.

Important Facts about Erc Broker Market Analysis

What is the purpose of the ERC Broker Market Analysis form?

The ERC Broker Market Analysis form is designed for real estate brokers to assess a property’s condition, competition, and future marketability. This report guides brokers in estimating the Most Likely Sales Price (MLSP) based on a detailed comparative analysis of the property against similar listings in the area. It is important to note that this document is not a home inspection or appraisal, and does not adhere to formal appraisal standards.

How should brokers approach filling out the form?

Brokers should take a diligent and thorough approach when filling out the form. They need to follow the procedures for contacting the homeowner, inspecting the property, and submitting the report. Collect all pertinent information about the property, including its condition and any improvements made. Make sure to observe and document any issues that may affect marketability. If there are state-specific disclosure requirements, these must also be included in the report appropriately.

What are some key components included in the form?

Key components of the ERC Broker Market Analysis form include sections for property information, assignment details, property condition, recommended repairs, financing options, and analysis of the local market and comparable listings. Brokers will need to provide essential details such as the home’s address, ownership form, any improvements, and a description of various property characteristics that may influence its value. Additionally, market analysis involves identifying competing listings and sales to offer insights into the property’s position in the market.

What should brokers ensure regarding the Most Likely Sales Price (MLSP)?

The Most Likely Sales Price should reflect the property in its current “as is” condition, with a marketing timeline not exceeding 120 days. Brokers ought to base this estimate on current market trends and comparable properties. It's essential to carefully evaluate both the local market and broader economic conditions that might impact how buyers perceive the property.

How does the form address the issue of financing?

The form includes specific sections related to financing options that are most likely available for the property. Brokers need to identify whether financing concessions may be required to secure a sale and address any potential issues affecting financing, such as outstanding assessments or environmental concerns. This helps provide a clearer picture of the property's marketability and can be crucial in negotiating the terms of the sale.

Common mistakes

Completing the ERC Broker Market Analysis form can be a daunting task, and many individuals make common mistakes that can significantly affect their evaluations. One mistake frequently observed is the failure to provide complete and accurate contact information. Missing details such as the homeowner’s phone number or email can hinder communication and follow-up, making it challenging to clarify any uncertainties. Accurate contact information is essential for conducting a thorough analysis and ensuring timely responses to queries.

Another common error involves neglecting to thoroughly assess the property’s condition. It's essential to check multiple aspects, from structural integrity to aesthetic issues. If a preparer skips checking for signs of water damage or structural problems, the estimate for the Most Likely Sales Price (MLSP) could be inflated. This oversight not only misguides potential buyers but can also affect the overall credibility of the analysis.

Also problematic is the tendency to omit local market conditions from the analysis. Failing to recognize current trends—such as whether property values are increasing, stable, or decreasing—can lead to incorrect conclusions. The section that addresses broader market areas must reflect accurate perceptions of the market environment. Without this context, the analysis may seem detached from reality and unhelpful to stakeholders.

Inadequate disclosures regarding miscellaneous property characteristics represent yet another critical gap. As outlined in the procedure guidelines, the condition and features of neighboring properties—including any easements or encroachments—should be documented. Omitting such details can obscure potential issues that may affect the insurability or marketability of the property.

Another mistake is not correctly identifying or communicating about the property’s financing type. If brokers do not rigorously assess the different options available for financing, or if they fail to mention potential issues that might affect financing security, serious miscalculations can arise. Buyers should clearly know whether the subject property can qualify for FHA, VA, or conventional loans.

Lastly, one of the more subtle yet impactful errors occurs when individuals fail to contextualize their analysis within comparable listings and sales. Selecting inappropriate comparables or misrepresenting their conditions can skew the entire market analysis. Each comparable property must closely resemble the subject property while accounting for any differences that could affect value. If these nuances are missed, the resulting evaluation may not reflect market realities, thus misleading prospective buyers and sellers.

Documents used along the form

The ERC Broker Market Analysis form serves as a key document in evaluating real estate properties. Along with this form, several other documents may be necessary to provide a comprehensive analysis of the property and its market context. The following is a list of related forms and documents that are commonly utilized in conjunction with the ERC Broker Market Analysis form.

Property Disclosure Statement: This document outlines any known issues affecting the property, such as structural problems or necessary repairs. Sellers must provide this information to potential buyers to promote transparency.
Comparative Market Analysis (CMA): This report compares a property to recently sold homes in the same area. It helps determine a fair market value based on current market trends and similar properties.
Sales Agreement: This legal document outlines the terms of the sale between the buyer and seller. It includes the purchase price, closing date, and any contingencies, thereby protecting both parties' interests.
Inspection Report: After a property is inspected, this report provides detailed findings regarding the condition of the home. It covers elements such as electrical systems, plumbing, and structural integrity.
Appraisal Report: Conducted by a licensed appraiser, this document assesses the property's market value. It considers current market conditions, comparable sales, and property characteristics.
Title Report: This report contains information regarding the property’s title, including ownership history and any liens or encumbrances. It ensures that the title can be transferred without issues.
HOA Documents: Homeowners Association documents include rules, regulations, and financial statements. They inform potential buyers about fees, restrictions, and the overall management of the community.
Financing Pre-Approval Letter: This letter shows that a buyer has been pre-approved for a mortgage. It indicates to sellers that the buyer is serious and capable of completing the purchase.
Market Conditions Report: Providing insights into local economic trends and demographic shifts, this report helps stakeholders understand factors that may influence property values over time.
Lead-Based Paint Disclosure: Required for homes built before 1978, this document informs buyers of any known lead paint hazards in the property. It addresses safety concerns and compliance with federal regulations.

Utilizing these documents in conjunction with the ERC Broker Market Analysis form creates a thorough view of the property’s market position. Such a comprehensive evaluation aids in informed decision-making for both buyers and sellers, ensuring that all aspects of the property are considered before completing a transaction.

Similar forms

Comparative Market Analysis (CMA): Similar in purpose, a CMA evaluates property values based on recent sales and current listings. It estimates a property's market value, considering comparable properties.
Residential Property Condition Disclosure Form: This document outlines the condition of the property and any known issues, much like the ERC Broker Market Analysis, which highlights the subject property's condition.
Appraisal Report: While not the same, both reports estimate property value. Appraisals typically follow specific standards, unlike the ERC analysis, which does not.
Listing Agreement: This contract sets the terms for selling a property. Similar to the ERC form, it requires information about the property’s features and market conditions.
Real Estate Purchase Agreement: This legal document details the terms of a sale, including the price and conditions. Like the ERC report, it considers the property's specifics and condition.
Inspection Report: An inspection report assesses a property's physical state. The ERC analysis includes observations about the property condition, though it is not a thorough inspection.
Market Trends Report: This document reviews market conditions and trends affecting property sales. The ERC analysis also considers market factors as they relate to the property’s sales potential.
Property Value Assessment: Similar to an appraisal, this document provides an estimate of a property's market value based on various criteria, much like the ERC analysis.
HOA Documents: Homeowners' Association documents can reveal restrictions and fees impacting property value and marketability, similar to considerations in the ERC form.
Sales History Report: This report details the historical sales data of a property, providing context similar to what the ERC analysis offers regarding market conditions.

Dos and Don'ts

When filling out the ERC Broker Market Analysis form, consider the following dos and don'ts:

Do: Thoroughly review all sections of the form before starting to ease the completion process.
Do: Include any state-specific disclosure requirements to ensure compliance with local laws.
Do: Provide precise and accurate estimates for repairs and recommended improvements.
Do: Follow the procedural guidelines provided by the requesting company for contacting homeowners and submitting your report.

Don't: Rely on the form as a substitute for a home inspection or appraisal; it serves a different purpose.
Don't: Omit any significant information about the property, as this could affect its future marketability.
Don't: Use vague language when describing the property’s condition; be specific.
Don't: Forget to highlight any known issues that could impact the property’s insurability.

Misconceptions

Misconception: The ERC Broker Market Analysis form is an appraisal.

This form is not meant to serve as an appraisal. While it analyzes property conditions and marketability, it does not conform to professional appraisal standards.

Misconception: This analysis includes a detailed home inspection.

It's important to note that this form does not replace a home inspection. It provides a market analysis based on the property's condition rather than a comprehensive inspection.

Misconception: The Most Likely Sales Price (MLSP) is guaranteed.

The Most Likely Sales Price is an estimate based on the current market conditions and property specifics. It’s not a guarantee of the selling price.

Misconception: All brokers will interpret the form the same way.

Different brokers may interpret the same data in various ways. Their personal experience and market understanding will influence how they fill out the form.

Misconception: The form is only relevant for residential properties.

This analysis can be used for various property types, including condominiums, mixed-use properties, and mobile homes.

Misconception: The form is only useful for the seller's agent.

Buyers' agents can also utilize this report to guide their clients. Understanding the market analysis helps them make informed offers.

Misconception: The information obtained will always be current.

The analysis relies on the most recent data available, but conditions can change rapidly in the real estate market, making it crucial to stay updated.

Misconception: The broker needs to be a licensed appraiser to fill out this form.

While the form requires a broker's expertise, a licensed appraiser is not mandatory to complete it. Brokers must however follow state-specific regulations.

Misconception: Using this analysis will ensure a quick sale.

While conducting a thorough market analysis can help set a competitive price, many other factors can influence how quickly a property sells, including market conditions and property appeal.

Misconception: All necessary disclosures will be automatically included.

Brokers must be aware of and include any state-specific disclosure requirements. This analysis does not automatically account for every local disclosure obligation.

Key takeaways

Completing the ERC Broker Market Analysis form effectively is crucial to assessing a property's marketability. Here are key takeaways to keep in mind:

Purpose of the Form: This form helps brokers conduct a thorough analysis of the property, its condition, competition, and potential marketability.
Not an Appraisal: Understand that this report is not an appraisal or home inspection. It's a comparative market analysis and should not be used as one.
Disclosure Requirements: Be aware of state-specific disclosure requirements and make sure to include any necessary information in the form.
Contact Procedures: Follow the requesting company's guidelines for contacting homeowners, inspecting properties, and submitting your report.
Most Likely Sales Price (MLSP): Estimate the MLSP based on the "as is" condition and a typical marketing time of no longer than 120 days.
Thorough Inspection: Document property condition, improvements, and any issues that could affect the sale, including neighborhood factors and property characteristics.
Marketing Strategy: Identify potential marketing concessions and analyze how competing listings may impact the pricing and sale of the subject property.

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