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Fill Out Your Erc Broker Market Analysis Template

The Erc Broker Market Analysis form is an important tool used by real estate brokers to perform a comprehensive analysis of a property's condition, its competition in the market, and its future marketability. This analysis helps brokers to estimate the most likely sales price of the subject property, without it serving as an official appraisal or home inspection. For those interested in understanding the full market potential of their property, filling out this form by clicking the button below can be a first step towards making informed decisions.

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In the intricate landscape of real estate, the Worldwide ERC® Broker’s Market Analysis and Strategy Report emerges as a cornerstone document, meticulously crafted to guide brokers through an exhaustive evaluation of a property's current state, competitive standing, and prospective market presence. By concentrating on a property’s condition, engaging in comparative market analysis, and scrutinizing its potential in the real market, this tool is paramount for determining the Most Likely Sales Price (MLSP). Though distinct from formal appraisals and home inspections—eschewing the Uniform Standards of Professional Appraisal Practice—this analysis serves a pivotal role, bridging the gap between raw data and actionable market insights. Brokers are instructed to adhere not only to the encompassing guidelines provisioned by requesting entities but also to navigate through a series of procedural mandates, encompassing direct engagement with homeowners, intricate property inspection, detailed reporting, and inclusive photographic documentation. Critical to this process is an in-depth understanding of state-specific disclosure mandates, ensuring comprehensive compliance and integration within the report. Moreover, this document accentuates the necessity for precise market timing, advocating for an optimal "as is" sale price realization within a 120-day window, subject to client-driven adjustments. With its strategic insight and rigorous attention to detail, the report underpins real estate decisions, heralding a blend of precision, foresight, and tailor-made marketing strategies aimed at maximizing property value in the fluid real estate market.

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Worldwide ERC® Broker’s Market Analysis and Strategy Report

Purpose: This report is designed to enable the real estate broker to conduct a diligent analysis of the subject property’s condition, competition, and future marketability. Based on this analysis, the broker is to estimate the subject property’s Most Likely Sales Price.

This is not a home inspection. Nor is this an appraisal; this comparative market analysis has not been performed in accordance with the Uniform Standards of Professional Appraisal Practice. It is not to be construed as an appraisal and may not be used as such for any purpose. Preparers of this form need to be aware of any state-specific disclosure requirements and include them in this form as appropriate.

Procedural Guidelines: For procedures on contacting homeowner, inspecting property, submitting report, and providing photos, follow the requesting company’s guidelines. The Most Likely Sales Price (MLSP) is based on “as is” condition and a marketing time not to exceed 120 days to a contract of sale or as directed by the client.

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

⇩ PDF Form

File Attributes

Fact	Detail
Purpose	The report aids real estate brokers in analyzing the condition, competition, and marketability of a property to estimate its Most Likely Sales Price.
Not an Appraisal	The analysis is not conducted according to the Uniform Standards of Professional Appraisal Practice and should not be considered an appraisal.
State-Specific Disclosures	Preparers must include any applicable state-specific disclosure requirements in the form.
Marketing Timeframe	The Most Likely Sales Price is based on the property's "as is" condition, aiming for a sale within 120 days.
Property Information	Includes detailed information about the property, homeowner, and requesting company.
Assignment Information	Details about the real estate firm and agent preparer are provided.
Property Characteristics	Compiles specifics about the property, including type, ownership, and improvements made.
Location and Marketability	Assessment of locational issues, site characteristics, and factors affecting marketability and value.
Condition Inspections and Disclosures	Information regarding the property's condition, suggested repairs, and required inspections.
Financing and Neighborhood Analysis	Considers probable financing methods, neighborhood characteristics, and competing listings and sales.

How to Fill Out Erc Broker Market Analysis

Completing the Worldwide ERC® Broker's Market Analysis and Strategy Report is a meticulous process that enables real estate brokers to present an informed analysis of a property's current condition, competition in the market, and its potential for future sale. This comprehensive examination is crucial for determining the most likely sales price of a property, but it's important to remember that this document should not be mistaken for a formal appraisal or home inspection. When preparing to fill out this form, brokers must incorporate any necessary state-specific disclosures to ensure accuracy and compliance.

Following a structured approach to filling out the form will facilitate a smooth and thorough analysis.

Begin by entering the Homeowner(s) information, property address, contact numbers, and the details of the company requesting the BMA under the INFORMATION section.
Under ASSIGNMENT, provide the Real Estate Firm's details, including the contact name and contact information, along with the agent preparer's details.
Record the homeowner's purchase price and the date of purchase. If any improvements have been made, list these under the same section.
Detail the subject property's status, including whether it is currently listed, form of ownership, occupant status, and type of property (e.g., Single Family, Condo, etc.).
Describe the subject's location, lot characteristics, and any locational issues that might affect its insurability under the LOCATION and SUBJECT sections.
In the CONDITION, INSPECTIONS/DISCLOSURES, and Recommended Repairs and Improvements sections, check appropriate boxes and describe known conditions, including any necessary repairs and corresponding estimated costs.
Specify the financing details, if applicable, under the FINANCING section, including the most probable means of financing and any concessions that might be necessary.
Define the subject neighborhood, using gathered statistics to reflect the micro area's market, and fill in the conditions and broader market area details.
Compare competing listings by entering information on at least three comparable properties under the COMPETING LISTINGS section, including style, list price changes, and days on the market.
Select and detail three comparable sales that are suitable and similar to the subject property within the same or similar market area in the COMPARABLE SALES section.

After all sections of the Worldwide ERC® Broker's Market Analysis and Strategy Report are diligently completed, the broker is to review the document for accuracy and completeness before submission. This form, with its detailed insight into the property and market conditions, plays a vital role in the strategic planning for the sale of the property. The next steps often include discussing the findings with the homeowner, aligning on a selling strategy, and implementing any necessary actions based on the report's recommendations.

Frequently Asked Questions

What is the purpose of the Worldwide ERC® Broker's Market Analysis and Strategy Report?

The Worldwide ERC® Broker's Market Analysis and Strategy Report is a comprehensive tool designed for real estate brokers. Its primary purpose is to assist brokers in conducting a thorough analysis of a property's condition, competitive standing, and future marketability. By evaluating these factors, brokers can estimate the Most Likely Sales Price (MLSP) of the property. It's important to note that this report is not a home inspection or an official appraisal. Its findings are based on a comparative market analysis and do not comply with the Uniform Standards of Professional Appraisal Practice (USPAP). Therefore, it cannot and should not be used as an appraisal for any purpose.

What steps should a broker follow when preparing this report?

To prepare the Worldwide ERC® Broker's Market Analysis, brokers should adhere to a specific set of guidelines, including:

Contacting the homeowner to gather initial information and schedule an inspection of the property.
Inspecting the property to assess its condition, paying special attention to any improvements made by the homeowner, existing maintenance issues, and any factors that might affect the property's insurability or value.
Submitting a detailed report that includes photographs of the property, a thorough analysis of its condition, market competition, and a suggested Most Likely Sales Price.
Incorporating any state-specific disclosure requirements into the report, as is appropriate and necessary.

How is the Most Likely Sales Price (MLSP) determined?

The Most Likely Sales Price is estimated by considering the property's current "as is" condition and its market competitiveness. The analysis also takes into account an expected marketing time not to exceed 120 days to reach a contract of sale, unless otherwise directed by the client. This estimate is influenced by the property's features, any known issues that could impact its value or marketability, and comparable sales and listings within the same or similar market areas.

Are there any required inspections or disclosures that need to be included in the report?

Yes, the Worldwide ERC® Broker's Market Analysis and Strategy Report must include all required, customary, and recommended inspections for the subject property. These might include municipal inspections, certificate of occupancy inspections, environmental inspections, among others. Furthermore, the report should list all mandatory disclosures known to the agent preparer. These could range from known maintenance issues with neighboring properties to details about the property's location in a flood plain or earthquake zone. State-specific disclosure requirements also need to be included, as they can vary significantly from one jurisdiction to another.

Can this report be used as an official appraisal?

No, the Worldwide ERC® Broker's Market Analysis and Strategy Report cannot be used as an official appraisal. It is specifically defined not to comply with the Uniform Standards of Professional Appraisal Practice (USPAP). The analysis is a broker's tool for evaluating a property's market position and potential selling price based on comparative market analysis. It's meant for informational purposes and strategic planning rather than for official valuation or lending purposes.

Common mistakes

Filling out the Worldwide ERC® Broker's Market Analysis and Strategy Report is a meticulous process that requires attention to detail. A common mistake is overlooking the condition section, which demands a candid evaluation. It's crucial for brokers to thoroughly inspect the property, identifying any issues such as signs of wear, structural concerns, or maintenance needs. These observations significantly influence the property's marketability and likely sales price. Failing to accurately report property condition can lead to an overestimation of value, affecting the sale process.

Another frequent error occurs in the analysis of comparable sales and listings. Brokers sometimes select comparables that aren't truly reflective of the subject property's location, condition, or features. This misstep can skew the market analysis, leading to an inaccurate estimation of the Most Likely Sales Price. It is vital to choose comparables carefully, ensuring they closely match the subject property in significant aspects. This careful selection contributes to a more precise and credible market analysis.

Additionally, there's a tendency to improperly calculate the absorption rate and overlook current market trends within the specific and broader market areas. Understanding and accurately reporting on these aspects are essential for setting realistic expectations around the sale timeframe and pricing strategy. Brokers should meticulously gather and analyze current market data to provide homeowners with a realistic outlook on their property's marketability and potential sales timeline.

Lastly, a significant oversight often made is not fully addressing or misunderstanding financing issues that could impact the sale. Whether it's the types of financing most probable for the property's future buyers or potential challenges in securing financing due to the property’s condition or location, these factors must be thoroughly examined and reported. An oversight here can lead to unexpected complications during the sale process, potentially deterring buyers or delaying the sale. A comprehensive evaluation of potential financing hurdles is essential for a well-rounded and effective market analysis.

Documents used along the form

When working with the Worldwide ERC® Broker’s Market Analysis and Strategy Report, various supporting documents and forms often accompany it to provide comprehensive insight into the real estate market analysis process. These additional forms serve to streamline the transaction, ensure compliance with legal requirements, and enhance the understanding of the property in question. Here’s a look at some common examples:

Comparative Market Analysis (CMA) Report: Offers a detailed comparison of the subject property to similar properties in the area that have recently been sold, are currently for sale, or were on the market but did not sell. This report helps in determining the property’s market value.
Property Disclosure Form: This document requires the seller to reveal any known defects and malfunctions within the property. It covers various aspects such as the condition of the roof, plumbing, electrical systems, and more.
Home Inspection Report: A comprehensive examination of the property’s overall condition conducted by a professional inspector. It assesses various components including the foundation, structural integrity, roof, HVAC systems, and more, often used to negotiate repairs before closing.
Title Report: Provides detailed information about the property’s ownership, outlining any easements, encumbrances, or liens filed against it. It ensures the buyer is informed of any factors that might affect ownership rights.
Appraisal Report: An expert estimation of the property’s value conducted by a licensed appraiser. Often required by lenders to ensure the property’s price matches its value.
Financing Pre-approval Letter: Shows that a lender is preliminarily willing to finance the mortgage, detailing the amount for which the potential buyer is approved. It strengthens the buying position in negotiations.
Home Warranty Agreement: Offers coverage for repair or replacement of major home systems and appliances that might fail after purchase. It provides an added layer of financial protection for buyers.
Lead-Based Paint Disclosure: Required for homes built before 1978, this form discloses the presence of lead-based paint. It provides buyers with information regarding the potential health risks associated with lead exposure.

Understanding and effectively utilizing these forms and documents in conjunction with the Worldwide ERC® Broker’s Market Analysis and Strategy Report can significantly enhance the real estate transaction process. They ensure that both buyers and sellers are well-informed and contribute to smoother, more efficient transactions.

Similar forms

The Comparable Market Analysis (CMA) is a document that bears significant resemblance to the Worldwide ERC® Broker’s Market Analysis and Strategy Report. Both these documents focus on evaluating a property's market value, considering factors like location, condition, and recent sales of similar properties. While the Worldwide ERC® form has a more comprehensive structure, delving into the marketing strategy and potential repairs, the core goal of estimating a property's market value aligns closely with the fundamentals of a CMA. The CMA, like the Worldwide ERC® report, aids in understanding the property's standing in the current market, assisting sellers in setting a competitive price.

Another similar document is the Home Inspection Report, which, although not identical, shares common ground with the ERC Broker’s Market Analysis form. The intersection lies in the detailed examination of property conditions. However, the Home Inspection Report primarily focuses on the structural, electrical, plumbing, and overall health and safety aspects of the property, without delving into market analysis or sales strategies. Both documents contribute valuable insights into a property's state, but from different angles – one from a market-value perspective and the other from a condition-based perspective.

The Appraisal Report is also akin to the Worldwide ERC® Broker's Market Analysis in several ways, primarily in its objective to assess a property’s value. However, the appraisal is usually more formal and is performed in accordance with the Uniform Standards of Professional Appraisal Practice. It also serves as a critical document in loan underwriting processes, providing a comprehensive analysis of the property's value based on thorough market research, comparables, and often, an in-person assessment of the property. Unlike the ERC's analysis, an appraisal is recognized and required by financial institutions for mortgage purposes.

Lastly, the Property Condition Disclosure Statement (PCDS) shares some similarity with the subject document, especially in sections dealing with the property's condition, required repairs, and disclosures. Both aim to inform about the property's state, but the PCDS serves as a formal disclosure from the seller to the buyer, outlining known defects or issues with the property. While it doesn't involve market analysis or pricing strategies, it's crucial for honesty and transparency in real estate transactions, complementing the information provided in a Broker's Market Analysis by disclosing aspects the analysis might not cover.

Dos and Don'ts

When completing the Worldwide ERC® Broker’s Market Analysis and Strategy Report, several best practices should be followed to ensure accuracy, compliance, and effectiveness of the analysis. Below are essential dos and don'ts to keep in mind:

Do:

Conduct a thorough inspection of the subject property to accurately assess its condition, noting any improvements or issues that might affect its marketability or insurability.
Accurately fill out all required sections, including information about the property, homeowner details, and any relevant disclosures, ensuring all data is current and correct.
Include comprehensive competitive market analysis by reviewing similar properties in both the subject neighborhood and the broader market area to support the Most Likely Sales Price (MLSP) estimation.
Clearly document any locational issues or miscellaneous factors that could influence the property’s value, including but not limited to environmental concerns, zoning issues, and HOA restrictions.
List and explain any recommended repairs and improvements, providing estimated costs and potential impact on the property’s marketability.
Be mindful of any state-specific disclosure requirements, incorporating them into the form to meet legal compliance.

Don't:

Use the Broker’s Market Analysis as a substitute for a professional home inspection or appraisal. The form explicitly states it should not be construed as an appraisal.
Overlook any known issues or details that could significantly affect the property's value or marketability, including locational disadvantages or property condition concerns.
Ignore the importance of providing photos and other supporting documentation that can offer visual evidence of the property’s condition and characteristics.
Fail to consider and include relevant market trends and data, such as inventory levels, average days on market, and local economic conditions, which can affect pricing strategies and the MLSP.
Estimate repairs, improvements, and their costs without conducting proper due diligence or consulting with professionals when necessary.
Submit the report without reviewing all sections for accuracy and completeness, potentially leading to errors or omissions.

Misconceptions

When discussing the Worldwide ERC® Broker’s Market Analysis and Strategy Report, confusion often arises due to its multifaceted nature. This document is designed with specific intentions, which may be misunderstood. Let's clarify some common misconceptions:

It's a Home Inspection: A frequent mistake is to equate this analysis with a home inspection. However, the purpose of the Broker’s Market Analysis is to assess the marketability and likely sales price of a property based on its condition and market conditions, not to provide a detailed inspection of its structural integrity or systems.
It Serves as an Appraisal: Another common misunderstanding is considering this report as an appraisal. An appraisal is a formal evaluation of a property’s value conducted by a certified appraiser following specific guidelines, which differs from a comparative market analysis that estimates a property's most likely sales price without adhering to the Uniform Standards of Professional Appraisal Practice.
State Disclosure Requirements Are Optional: Some may overlook the necessity of integrating state-specific disclosure requirements in the report. It's vital to understand that these disclosures are mandatory and preparers must include them to comply with state regulations, ensuring the report's accuracy and legality.
One-Size-Fits-All Procedure: The misconception that the report follows a universal procedure omits the importance of adhering to the guidelines provided by the requesting company. The procedural aspects, such as property inspection and submission format, may vary and must align with the specific requirements outlined by the client.
Estimation Is Based on Fixed Conditions: There might be confusion that the property’s Most Likely Sales Price (MLSP) is calculated under a set of arbitrary conditions. In reality, the MLSP is carefully estimated based on the “as is” condition of the property and considering a marketing time that should not exceed 120 days, unless directed otherwise by the client.
Marketing and Repairs Are Not Considered: A significant oversight is the assumption that marketing strategies and repair recommendations are not part of the analysis. Contrarily, the report requires the real estate broker to provide suggestions for marketing the property effectively and to recommend necessary repairs and improvements that could enhance the property's value and sellability.

Clarifying these misconceptions ensures a comprehensive understanding of the Worldwide ERC® Broker’s Market Analysis and Strategy Report, highlighting its purpose, limitations, and the critical role it plays in the real estate market. Recognizing these aspects helps in maximizing the utility of the report for both brokers and homeowners alike.

Key takeaways

The Worldwide ERC® Broker’s Market Analysis and Strategy Report is a tool used by real estate brokers to analyze a property's condition, market competition, and future marketability. Its objective is to estimate the Most Likely Sales Price (MLSP) of the subject property based on its current condition and a marketing time of up to 120 days.

This analysis is distinct from a home inspection and is not an appraisal. It does not comply with the Uniform Standards of Professional Appraisal Practice (USPAP) and cannot be used as an appraisal for any purpose.

Brokers preparing this form must include any state-specific disclosure requirements as necessary, ensuring the analysis adheres to local legal and professional standards.

The report requires detailed information about the property, including homeowner improvements, whether the property is currently listed, the type of ownership, and specifics about the property’s location and characteristics.

For an accurate analysis, the form necessitates a comprehensive inspection of the property’s condition, including interior and exterior elements, and recommends necessary repairs and improvements along with estimated costs for these works.

Information on the property’s neighborhood, broader market area, competing listings, and comparable sales are crucial components of the report, providing context and comparison to support the MLSP estimation.

The form outlines procedural guidelines for contacting homeowners, inspecting the property, submitting the report, and providing photos, as directed by the requesting company.

Financing aspects related to the subject property must be identified, including the most probable means of financing, any necessary financial concessions to secure a sale, and if any factors might affect the ability to secure financing for the property.

By completing the Worldwide ERC® Broker’s Market Analysis and Strategy Report, brokers offer valuable insights into a property's market position and potential sales strategy, making it a key document in the real estate industry.

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