The Worldwide ERC® Broker’s Market Analysis and Strategy Report facilitates a comprehensive assessment of a property's state, its competition, and potential for sale, enabling brokers to predict the Most Likely Sales Price (MLSP) effectively. It streamlines the process by concentrating on key factors such as the condition of the property, market trends, and pricing strategies without equating to a formal appraisal or inspection. This detailed examination aids brokers in making informed decisions, tailoring their approaches to meet specific market demands. For more insightful analysis and to better understand your property's standing in the current market, click the button below to fill out the form.
In the dynamic world of real estate, making informed decisions requires a comprehensive understanding of the market, and the Worldwide ERC® Broker’s Market Analysis and Strategy Report provides a structured way to achieve that. This extensive form serves as a critical tool for real estate brokers, aiding in the detailed examination of a property's present condition, its competition in the current market, and its future marketability prospects. Unlike a standard home inspection or an appraisal, this analysis does not comply with the Uniform Standards of Professional Appraisal Practice, emphasizing its unique role in estimating a property’s Most Likely Sales Price (MLSP). Importantly, it takes into account the property's "as is" condition and anticipates a marketing time frame that should not exceed 120 days. The report stresses the importance of state-specific disclosure requirements, ensuring that brokers are reminded to adhere to local regulations. Moreover, it outlines procedural steps for engaging with homeowners, inspecting properties, and reporting findings, which includes providing photographs and relevant property details. By delving into both the property-specific factors such as improvements and listing status, and broader market conditions like neighborhood trends and economic factors, the form encapsulates a holistic approach to real estate market analysis.
Worldwide ERC® Broker’s Market Analysis and Strategy Report
Purpose: This report is designed to enable the real estate broker to conduct a diligent analysis of the subject property’s condition, competition, and future marketability. Based on this analysis, the broker is to estimate the subject property’s Most Likely Sales Price.
This is not a home inspection. Nor is this an appraisal; this comparative market analysis has not been performed in accordance with the Uniform Standards of Professional Appraisal Practice. It is not to be construed as an appraisal and may not be used as such for any purpose. Preparers of this form need to be aware of any state-specific disclosure requirements and include them in this form as appropriate.
Procedural Guidelines: For procedures on contacting homeowner, inspecting property, submitting report, and providing photos, follow the requesting company’s guidelines. The Most Likely Sales Price (MLSP) is based on “as is” condition and a marketing time not to exceed 120 days to a contract of sale or as directed by the client.
INFORMATION
File #:
Homeowner(s):
Property Address:
Home Phone #:
City, State, Zip:
Work Phone #:
BMA Requested by (Co. & Contact):
e-mail:
Requesting Co. Address:
Phone #:
Fax #:
ASSIGNMENT
Real Estate Firm:
Contact Name:
Real Estate Firm Address:
Agent Preparer:
Homeowner’s purchase price: $
Date purchased:
Improvements made by homeowner if any:
Is the subject currently listed?
□ Yes
□ No
Listing Company/Agent:
Form of Ownership:
□ Fee Simple
□ Leasehold
Occupant:
□ Homeowner
□ Tenant
□ Vacant
Type: □ Condo
Coop
PUD
Single Family
Mixed Use
Town House
Modular
Mobile Home
SUBJECT
□ Other:
Indicate any personal property that remains (e.g., refrigerator, range, etc):
Subject’s location type:
□ Urban
□ Suburban
□ Distant suburban
□ Rural
□ Farm
□ Resort
Lot Characteristics: positive/negative (explain):
Subject’s view: positive/negative (explain):
Locational issues OF WHICH you are aware that may affect the insurability of the property:
LOCATION
Site Characteristics of which you are aware (check all that apply):
□ Private Street Access
□ Private Street Maintenance
□ Gated
□ Alley
□ Easements/Encroachments
□ Sidewalk
□ Curbs/Gutters
□ Street Lighting
□ Paved Street Surface
□ Paved Driveway Surface
Miscellaneous of which you are aware (check all that apply):
□ Maintenance issues with neighboring properties
□ Excess acreage or land
□ Mobile homes/trailer park nearby
□ Subject located on or near designated environmental sites
□ Location next to agricultural area
□ Close proximity to hospital/firehouse, etc.
□ Neighborhood has restrictive covenants
□ Subject located near railroad tracks
□ Audible street or highway noise present
□ Located on or backs up to busy/main street
□ Location in flood plain
□ Location in earthquake zone
□ Location next to school or public park
□ Property located on corner lot
□ Access to subject property
□ Location near/in view of power lines/water towers/ radio towers
□ Location next to industrial area
□ Located on airport flight path
□ Additional Comments:
Check all other items of which you are aware that may affect the marketability or value of the subject property and comment below:
□ Style of home not typical for the area
□ Subject is over improved
□ Subject is under improved
MISCELLANEOUS
□ Inadequate parking
□ Functional obsolescence
□ Steep driveway
□ Proposed land use change
□ Little sales activity in area or price range
□ Estimated time to sell is more than 120 days
□ Proposed or pending assessments
□ Property taxes not typical for area
□ HOA has first right of refusal
□ HOA does not allow “for sale” signs on property
□ HOA fees not typical for the area
□ Other
Comments:
Copyright © 2008 by Worldwide ERC®
Rev. 01/07/2009
This Form Expires 12/31/2009
Page 1 of 6
SUBJECT CONDITION
INSPECTIONS/DISCLOSURES
Property Condition
For all the following of which you are aware or observe in viewing the property, check the appropriate box(es) and describe:
□Décor of home is personalized or dated:
□Incomplete construction:
□Evidence of past or present water damage:
□Cracks or stains on walls, floors, or ceilings:
□Oil tank (abandoned):
□Oil tank (in use):
□Underground storage tank (abandoned):
□Underground storage tank (in use):
□Synthetic stucco:
□Suspected structural problems:
□Evidence of odor:
□Evidence of pet damage:
□Evidence of deferred maintenance: Additional Comments:
Recommended Repairs and Improvements
Interior Items
R&I Estimates
□ Paint
Estimated cost per item: $
Comment:
□ Flooring
□ Wall paper removal
□ Appliances
□ Cabinets
□ Light fixtures
□ Countertops
□ Bathroom fixtures
Total Estimated Cost for Interior Repairs
$
Exterior Items
□ Landscaping
□ Driveway/walkway
□ Porch/deck
□ Pool
□ Spa
Estimated cost per item :$
□ Gutters
□ Siding
□ Trim
□ Roof
□ Detached structures
□ Debris removal
□ Windows and screens
Total Estimated Cost for Exterior RepairS
List all required, customary and additionally recommended inspections (e.g., municipal, certificate of occupancy, environmental, etc.): Required:
Customary:
Additionally recommended for the subject property:
Subject property issues OF WHICH you are aware that may affect insurability of the subject property:
List all required disclosures:
Page 2 of 6
Identify the most probable means of financing for the subject:
□ FHA
□ VA
□ Cash
□ Conventional mortgage—conforming or jumbo
Describe the terms of the financing type identified above:
Identify and describe any financing concessions that may be necessary to secure the sale of the subject property.
□ Points:
□ Closing Costs:
FINANCING
Do you anticipate any issues that may affect the ability to secure financing for the subject property (e.g., condition, zoning, environmental, HOA, etc.)?
□ Yes □ No
If yes, comment:
If the subject property is a common interest development (e.g., condo, townhouse, PUD), what is the ratio of owners to investors?
□ N/A
Owners:
%
Investors:
(total MUST equal 100%)
HOA Fees: $
How often are they paid?
□ Monthly
□ Quarterly
□ Semi-annually
□ Annually
Items included in HOA Fees: □ Trash Pick-up
□ Snow Removal
□ Exterior Building Maintenance
□ Security/Concierge Services
□ Insurance
□ Taxes
□ Amenities
□ Common Area Maintenance
WATER
SEWER
Are you aware of any special assessments covered by the HOA?
If yes, indicate the amount of assessment: $
Describe what the special assessment covers:
Subject Neighborhood (For purposes of this report, the subject neighborhood is defined by the preparer of this form. Identify what you regard as the
subject neighborhood and then use statistics that you have gathered which reflect that market area. Note: the neighborhood might be a MLS area, a
particular section of a town, a specific subdivision, or an entire community. This is described as the “micro area.”)
Subject neighborhood is defined as:
Price Range: $
to $
Property Values are: □ Increasing
% in past
months
□ Stable
Average Days-on-Market (list to contract)
days
□ Decreasing
(# of days)
Calculate the months supply of inventory (Absorption Rate):
Type of competing listings
New Homes
Resale
Number of active listings ÷
Avg. number of sales per month
=
Number of months needed
REO/Foreclosure
for the last 6 months
to sell existing inventory
Corporate
Total (MUST equal 100%)
100%
Describe all marketing concessions/incentives being offered to buyers and/or brokers on competing properties:
CONDITIONS
Recommend any marketing concessions/incentives that should be offered for the subject:
MARKET
Describe major corporation(s) in this neighborhood that are moving into, out of, or planning layoffs:
Describe current economic conditions (positive or negative) that may have an Effect on the marketability of the property:
Broader Market Area (For purposes of this report, the broader market area is defined as that area beyond the subject neighborhood in which buyers will
look for comparable properties. This is described as the “macro area.” In some instances, the broader market area will be the same as the subject’s
neighborhood. If this is the case, indicate it below.)
What do you consider the “broader market area” to be for this property?
Are there any specific issues in the broader market area which are not reflected in the specific neighborhood that might affect the sale of the subject property? Consider types of competing homes (e.g., new construction, REO’s); incentives or concessions that are occurring; economic conditions; a dramatically different price range than the subject; days on market; etc.
This Form Expire 12/31/2009
Page 3 of 6
COMPETING LISTINGS
ITEM
Competing Listing #1
Competing Listing #2
Competing Listing #3
Address, City
Current MLS #
Proximity to Subject
Original List Price
Current List Price
Seller Concessions
Last Price Change Date
Days-on-market (DOM)
from original list date
Previous listing history for last
Orig. List Price $
Last List Price $
Last List Price
12 months
DOM:
Style
□ Brick
□ Wood
□ Composite
□ Stone
Exterior Finish
□ Aluminum
□ Stucco
(Check all that apply)
□ Synthetic Stucco
□ Vinyl
□ Hardcoat Stucco
□ Slate
Roof Type
□ Tar
□ Tile
□ Wood shake
□ Tin
□ Asphalt shingle
□ Copper
□ None
□ Garage
# of Cars
□ Attached
Car Storage/Type
□ Detached
□ Built-in
□ Carport
Year Built
Lot Size
Appx. Gross Living Area
Sq. Ft
Above Grade Room Count
Tot
Brms.
Baths
Tot.
Basement
□ Partial
□ SLAB
□ Full
□ Crawl Space
WALK-OUT
Basement Finish
Attic (Check all that apply)
Attic Access
□ Walkup
□ Hatch
□ Pull down steps
Bonus Room
□ Barn
Detached Structures
□ Guest House
□ Studio
□ Pool House
□ Shed
Deck/Patio
Pool/Spa
Fireplace(s)
□ Public
□ Private
Water Supply
□ Community
□ Well
□ Septic
□ Sewer
Waste Disposal
□ Cesspool
Type of Air Conditioning
□ Central
□ Window/Wall
□ Heat Pump
□ Gas
□ Propane
□ Electric
Type of Heating System
□ Radiant
□ Oil
□ Wood stove
□ Solar
□ Base Board
□ Coal
□ Heat pump
□ Radiator
Location
□ Superior
□ Similar
□ Inferior
Lot Characteristics
View
Floor Plan Utility
Ext. Condition’s Appeal
Int. Condition’s Appeal
Overall Rating of Listings as
Compared to Subject
Listing #1: Date inspected:
Listing #2: Date inspected:
Listing #3: Date inspected:
Page 4 of 6
Instructions: Select sales within the last six months which are suitable and similar to the subject property and within the same/similar market area.
COMPARABLE SALES
Comparable Sale #1
Comparable Sale #2
Comparable Sale #3
MLS #
Final List Price
Sales Price
Under Contract Date
Closing Date
□Partial
Full
□ Window/Wall □ Heat Pump
Overall Rating of Sales as
Sales #1: Inspected? □ Yes
□ No Comments:
Sales #2: Inspected?
□Yes
Sales #3: Inspected?
Page 5 of 6
MOST LIKELY
BUYER(S)
MARKETING STRATEGY
VALUE
ANALYSIS
SIGNATURES
Check all that apply:
□ Local Buyer
□ Transferee
□ International Buyer
□ First-time Homebuyer
□ Second-home Buyer
□ Empty Nester
□ Military
□ Parent Purchaser for Child
□ Move-up Homebuyer
□ Investor
□ Dual-income
What are the three - five challenges to getting this property sold?
1.
2.
3.
4.
5.
What are the three - five actions necessary to address the challenges identified above?
What are the top five creative ideas you will use in marketing this property keeping in mind the challenges and actions identified above?
Additional Comments:
Most Likely Sales Price (MLSP): $
Suggested List Price (SLP): $
The MLSP is based on “as is” condition and a marketing time not to exceed
days to a contract of sale.
Real Estate Firm Tax ID #:
Date of Inspection:
Agent Preparer Name:
Contact Signature:
Agent Preparer Signature:
Page 6 of 6
When preparing to fill out the Worldwide ERC® Broker’s Market Analysis and Strategy Report, you're embarking on a comprehensive evaluation of a property to determine its Most Likely Sales Price (MLSP). This process requires thorough attention to detail as you'll assess the property's condition, market competition, and overall marketability. Remember, this isn't a formal appraisal or home inspection, but an analysis rooted in current market trends and comparative data. Here’s a clear, step-by-step guide for navigating through this detailed form.
Once you've completed all sections of the form, review your entries to ensure accuracy and comprehensiveness. This analysis will serve as a vital tool in estimating the Most Likely Sales Price under current market conditions, providing valuable insights to both sellers and buyers alike. Submit the report following the guidelines provided by the requesting company, along with any required photographs or additional documentation.
What is the purpose of the Worldwide ERC® Broker's Market Analysis and Strategy Report?
The report equips real estate brokers with a comprehensive tool to meticulously assess a property’s condition, compare it with the competition, and gauge its future marketability. It aids in estimating the most likely sales price of the property, taking into account its current condition and the expected timeframe to sell, which should not exceed 120 days.
Is the Worldwide ERC® Broker's Market Analysis the same as a home inspection or appraisal?
No, this market analysis is distinct from a home inspection and should not be confused with an appraisal. Unlike a formal appraisal, which adheres to the Uniform Standards of Professional Appraisal Practice, this analysis is a comparative market evaluation and should not be used as an appraisal for any purpose.
Are there any special considerations or disclosures required when preparing this form?
Yes, those preparing the form must be aware of and include any state-specific disclosure requirements as appropriate. This ensures the analysis meets local regulatory standards and provides accurate, relevant information.
What guidelines should be followed when conducting this analysis?
Brokers should adhere to the procedural guidelines provided by the requesting company. These guidelines typically cover procedures for contacting the homeowner, inspecting the property, submitting the report, and providing photographs of the property.
How is the Most Likely Sales Price (MLSP) determined in this analysis?
The MLSP is estimated based on the property's current “as is” condition and the anticipated marketing time to achieve a sale, which should not exceed 120 days unless otherwise directed by the client.
What type of information is required about the subject property?
Detailed information regarding the homeowner(s), property address, contact information, real estate firm handling the assignment, and specifics about the property itself — including improvements made, current listing status, form of ownership, and more — are necessary to conduct a thorough analysis.
What are the key elements evaluated in the subject property’s condition?
The condition assessment covers a wide range of elements from the decor’s appeal to structural integrity, including indications of past or present water damage, odors, pet damage, maintenance issues, and any recommended repairs or improvements along with estimated costs.
How does the form address financing and neighborhood analysis?
The form considers likely financing options for potential buyers, addresses any issues that may affect financing, and includes a comprehensive analysis of the subject property’s neighborhood. It looks at property values, average days on the market, and inventory levels to provide insights into local market conditions and competitiveness.
Filling out the ERC Broker Market Analysis form accurately is crucial for a real estate broker to conduct a thorough analysis and estimate the most likely sales price of a property. However, several common mistakes can impact the quality and accuracy of this report. Below are five notable errors to avoid:
Overlooking State-Specific Disclosure Requirements: Each state may have unique disclosure requirements that need to be adhered to. Failure to include these state-specific disclosures can lead to incomplete reporting or non-compliance with local real estate regulations.
Inaccurate Reporting on Property Condition: Properly assessing and reporting the condition of the property, including any improvements made by the homeowner or required repairs, is vital. Overlooking or inaccurately documenting these details can mislead the estimated market value.
Not Checking All Applicable Boxes: The form includes various checkboxes to indicate specific characteristics or issues relating to the property. Missing any of these boxes might result in an incomplete analysis of factors affecting the property's marketability and value.
Incorrectly Estimating the Most Likely Sales Price (MLSP): Determining this price requires a comprehensive understanding of the property's condition, current market trends, and comparative market analysis. Errors in calculating MLSP can misguide sellers or buyers regarding the property's market value.
Omitting Financial Terms and Market Conditions: Financial details, including the most probable means of financing and any necessary financing concessions, are critical for understanding the sale's feasibility. Moreover, failing to accurately describe the current economic conditions and market concessions/incentives can lead to unrealistic expectations.
Attention to detail and a thorough understanding of the property and the market are crucial when filling out the ERC Broker Market Analysis form to ensure an accurate and comprehensive report.
When preparing or reviewing a Worldwide ERC® Broker's Market Analysis and Strategy Report, several other forms and documents often complement the analysis process. These documents play a vital role in ensuring a comprehensive assessment of the property's marketability and value. Understanding each of these documents can aid significantly in navigating through the real estate analysis phase.
Collectively, these documents provide a solid foundation for understanding a property's market value, condition, and the best strategies for marketing. Incorporating them alongside the Worldwide ERC® Broker’s Market Analysis and Strategy Report ensures a well-rounded approach to real estate transactions, offering valuable insights that benefit both sellers and buyers.
Comparative Market Analysis (CMA) Report: Similar to the ERC Broker Market Analysis form, a CMA provides a detailed comparison of the subject property to current market listings and recent sales. Both documents estimate a property's value based on current market trends, condition, and competition.
Appraisal Report: While the ERC form is not an appraisal, it shares similarities in that it evaluates a property's marketability and potential sale price. Both require inspection and analysis of the property, though the appraisal adheres to the Uniform Standards of Professional Appraisal Practice.
Home Inspection Report: Although the ERC form explicitly states it is not a home inspection, it includes sections on property condition, improvements, and recommended repairs, which are elements also covered in a home inspection report. The critical difference is the depth of evaluation and the purpose behind each report.
Listing Agreement: Elements within the ERC form relate to the marketing and potential listing of the subject property, including whether the property is currently listed, which resembles sections of a listing agreement specifying terms under which a property will be marketed.
Real Estate Purchase Contract: The ERC form's section on anticipated sale price and financing mirrors considerations in a purchase contract regarding price and terms. Both serve to establish expectations of a property's sale conditions.
Property Disclosure Form: The requirement to disclose specific state-mandated information in the ERC form aligns with the purpose of property disclosure forms, which inform buyers about known issues that could affect a property's value or desirability.
Zoning Compliance Report: The discussions about zoning or potential land use changes in the ERC form share objectives with a zoning compliance report, which assesses if a property meets local zoning and land use regulations.
Homeowner Association (HOA) Documents: The sections that detail HOA fees, restrictions, and the ratio of owners to investors echo the type of information found in HOA governing documents, crucial for evaluating a property within a managed community.
Environmental Assessment Report: Although not as comprehensive, the ERC form points out potential environmental concerns near or on the property, which is a primary focus of environmental assessments.
Market Trends Report: Highlighting broader market area conditions, economic factors, and inventory levels, the ERC analysis performs a similar function to a market trends report, offering insights into the larger economic and real estate environment that affects property values.
When filling out the ERC Broker Market Analysis form, paying attention to details is key. The following tips will help ensure the process is smooth and accurate:
Following these dos and don'ts will help in delivering a thorough and professional Broker Market Analysis, adhering to the standards expected by the Worldwide ERC®.
When it comes to the Worldwide ERC® Broker’s Market Analysis and Strategy Report, there are several misconceptions that people commonly have. Let's clear up some of those misunderstandings:
Understanding these misconceptions about the Worldwide ERC® Broker’s Market Analysis and Strategy Report can help real estate professionals and homeowners alike navigate the complexities of pricing and selling property with more clarity and confidence.
Filling out the Worldwide ERC® Broker's Market Analysis and Strategy Report requires careful attention to details regarding the property's condition, its competition, and broader market factors that could influence its sale. Here are six key takeaways for effectively using and completing the form:
Proper completion and understanding of the Worldwide ERC® Broker's Market Analysis and Strategy Report can significantly impact the sales strategy for a property, making it a valuable tool for real estate professionals navigating the complex market landscape.
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