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Fill Out Your Erc Broker Market Analysis Form

The Worldwide ERC® Broker’s Market Analysis and Strategy Report is a tool for real estate brokers. It helps them assess a property’s condition, competition, and market potential to estimate its Most Likely Sales Price. This report is not a home inspection or an appraisal, and it requires attention to state-specific disclosure obligations.

To ensure an accurate assessment, complete the Erc Broker Market Analysis form by clicking the button below.

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Article Structure

The ERC Broker Market Analysis form serves as a crucial tool for real estate brokers who are tasked with assessing a property's condition, its competitive landscape, and potential marketability. This structured report is designed to facilitate a thorough analysis while estimating the Most Likely Sales Price (MLSP) for a property. Unlike home inspections or appraisals, this form primarily focuses on comparative market analysis and does not adhere to strict appraisal standards. As brokers complete this form, they must remain vigilant about any state-specific disclosure requirements, ensuring that all necessary information is included. The form outlines procedural guidelines for contacting homeowners, inspecting properties, and submitting the report, all while emphasizing the importance of clarity and accuracy. By collecting pertinent details about the subject property, including its condition, improvements, type of ownership, and locational factors, brokers can better understand the nuances affecting marketability. Additionally, insights into financing options and local economic conditions further enrich the analysis. Each section is meticulously crafted to gather information that influences the property’s valuation and helps brokers to strategically position it in the current real estate landscape.

Erc Broker Market Analysis Example

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

Get Erc Broker Market Analysis PDF Form

Form Characteristics

Fact Name	Details
Purpose of the Form	The Worldwide ERC® Broker’s Market Analysis and Strategy Report helps brokers analyze a property's condition and marketability to estimate its Most Likely Sales Price.
Not an Appraisal	This report is not a home inspection or a formal appraisal and does not comply with the Uniform Standards of Professional Appraisal Practice.
State-Specific Disclosure	Prepares must consider and include any state-specific disclosure requirements during the completion of this form.
Marketing Time Constraint	The estimated Most Likely Sales Price is based on the property being in "as is" condition and should be sold within 120 days unless otherwise directed by the client.

Guidelines on Utilizing Erc Broker Market Analysis

Completing the ERC Broker Market Analysis form is a crucial step in evaluating a property’s market position. After filling out this form, it will be necessary to analyze the data gathered to provide a reliable estimate of the Most Likely Sales Price based on current market conditions.

Begin by filling in the INFORMATION section. Enter the File number, homeowner(s) details, property address, and phone numbers.
Provide the details of the broker or company requesting the analysis in the REQUESTING CO. section.
Under the ASSIGNMENT section, fill in the real estate firm’s name, contact details, and agent preparer's information.
Document the homeowner’s purchase price and date purchased.
Note any improvements made by the homeowner, and indicate if the property is currently listed.
In the SUBJECT section, describe any personal property that will remain with the sale.
Identify the subject’s location type and lot characteristics. State whether the attributes are positive or negative and provide explanations.
Document any locational issues that may impact the insurability of the property.
Check applicable LOCATION and miscellaneous characteristics of the property.
In the SUBJECT CONDITION INSPECTIONS/DISCLOSURES section, mark/check all condition items that apply and provide additional comments if necessary.
List recommended repairs and improvements along with estimated costs per item for both interior and exterior items.
Investigate and list any required and customary inspections, as well as any disclosures you are aware of.
Identify the financing options available for the property, including specific terms and potential issues.
Characterize the subject neighborhood and broader market area, using all relevant statistics.
Compile information on comparable sales and competing listings and complete their respective sections on the form.
Finally, detail any comments regarding the market conditions and propose marketing strategies if needed.

What You Should Know About This Form

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

The ERC Broker Market Analysis form enables real estate brokers to perform a comprehensive analysis of a property’s condition, competition, and its future marketability. This tool assists brokers in determining the Most Likely Sales Price (MLSP) based on current market conditions. Importantly, it is not a home inspection or appraisal, and thus should not be used as such. The form requires brokers to take into account state-specific disclosure requirements while conducting their analysis.

What should be included in the property condition assessment section?

In the property condition assessment section, brokers are expected to document any observable issues or features of the property that could impact its value. This includes checking for signs of water damage, structural issues, and other maintenance concerns. Additional comments can highlight areas needing repairs or improvements. By capturing these details, the broker can provide a more accurate estimate of the property's marketability and necessary investment for repairs.

How does the Broker Market Analysis impact pricing strategy?

The Broker Market Analysis directly influences the pricing strategy for a property by providing a well-researched estimate of its Most Likely Sales Price. Through comparative market analysis, brokers can assess similar properties in the local market, helping them to position the subject property competitively. Additionally, by understanding the local market conditions, brokers can adjust their pricing strategies based on factors like current competition and market demand.

What factors are considered in the analysis of nearby competing listings?

When analyzing competing listings, brokers look at various elements, such as original and current list prices, seller concessions, and the history of price changes for those properties. They also examine similarities or differences in property style, condition, and features, which can affect marketability. This thorough evaluation allows for strategic decisions in marketing and pricing the property, ultimately aiming to achieve a successful sale.

Common mistakes

When completing the ERC Broker Market Analysis form, people often make mistakes that can lead to inaccuracies in property evaluations. One common error is incomplete contact information. Omitting phone numbers or email addresses makes it difficult for clients to follow up or clarify questions about the property.

Another mistake is failing to specify the type of ownership accurately. If the form indicates "Fee Simple" when the actual ownership type is "Leasehold," it can lead to misunderstandings about the property's rights and responsibilities.

Many brokers also skip the section regarding improvements made by the homeowner. Not documenting renovations can affect the final analysis of the property’s value and its marketability. Clear information about upgrades helps to tailor the analysis more effectively.

Additionally, some individuals neglect to check all relevant location characteristics. It’s crucial to identify issues such as proximity to schools or busy roads, as these can significantly influence marketability. Failing to provide this information results in an incomplete market overview.

Inadequate descriptions of the property’s condition represent another frequent error. Brokers may fail to note evidence of water damage, structural problems, or deferred maintenance. Omitting these details can mislead potential buyers about the home's true condition.

The section for market analysis can also fall short if brokers do not calculate the months of inventory correctly. A misleading absorption rate creates uncertainty around pricing strategy. It’s essential to ensure accuracy in these estimates to guide appropriate pricing.

People often misuse terms related to financing options, leading to confusion around the property's financial viability. Providing vague or incorrect details can complicate matters for potential buyers. Clear, specific terms help clarify financing possibilities.

Failure to address any special assessments that may apply also poses a problem. Not mentioning pending assessments can trap buyers in unexpected costs. Transparency is vital for fostering trust and satisfaction between parties.

Some brokers neglect to comment on marketing strategies or concessions that should be included. If the report misses recommendations on incentives, it may hinder the property's appeal in a competitive market. Offering thoughtful concessions can enhance buyer interest.

Lastly, a lack of comparison with similar properties can weaken the analysis. Listing comparable sales is necessary, as it provides context for the valuation. An effective report that includes this data will ultimately serve clients better and ensure a more accurate property assessment.

Documents used along the form

The ERC Broker Market Analysis form serves as a vital tool for real estate professionals. It helps them analyze the property at hand, evaluate local market conditions, and estimate its likely sales price. However, it works best when combined with other supporting documents that provide a more comprehensive view of the property's value and marketability. Below is a list of common forms and documents that are often used alongside the ERC Broker Market Analysis form, each serving a distinct purpose.

Comparative Market Analysis (CMA): This document provides a detailed analysis of similar properties recently sold in the area. It helps the real estate broker determine competitive pricing based on current market trends.
Property Condition Disclosure: Homeowners fill out this disclosure, detailing any known issues with the property. It includes information such as past damage, repairs, and maintenance history, ensuring potential buyers are informed.
Inspection Report: A certified inspector evaluates the property's physical condition. This report pinpoints structural issues, property defects, and areas needing repairs, which aids in negotiating sale terms.
Listing Agreement: This document outlines the contract between the seller and the real estate agent. It covers the agent's responsibilities, including marketing the property and potential commission structures.
Appraisal Report: Conducted by a licensed appraiser, this formal assessment determines the property's market value. It follows specific standards and is often required by lenders to ensure the property's value supports financing.
Sales Contract: This legal document lays out the terms of the sale. It includes the agreed-upon price, closing date, and contingencies that may affect the transaction.
Homeowner Association (HOA) Documents: If the property is part of an HOA, these documents provide details about fees, rules, and regulations that govern the community, impacting the property's appeal and value.
Title Report: This is a review of the property's legal ownership history. It identifies any liens, easements, or other claims against the property, ensuring that the title is clear for sale.

By utilizing these documents in conjunction with the ERC Broker Market Analysis form, real estate professionals can equip themselves with a comprehensive understanding of both the property and the market. This holistic approach ultimately helps them better serve their clients and facilitate successful transactions.

Similar forms

Comparative Market Analysis (CMA): Similar to the ERC Broker Market Analysis, a CMA provides an estimation of a property's value based on comparable sales in the area. It involves evaluating recent sales data, market trends, and property conditions to help sellers and buyers understand pricing.
Appraisal Report: While the ERC form is not an appraisal, an appraisal report serves a similar purpose by assessing a property's value. It is typically prepared by a licensed appraiser and adheres to professional standards, unlike the ERC’s informal analysis.
Property Condition Disclosure Statement: This document goes hand-in-hand with the ERC form in that it discloses known issues and defects of a property. Both documents emphasize the importance of transparency regarding property condition to potential buyers.
Market Value Analysis (MVA): An MVA estimates the market value of a property in a systematic way. Like the ERC form, it evaluates various factors that influence market conditions, but it may incorporate more statistical analysis.
Lease Agreement: Though fundamentally different in purpose, both a lease agreement and the ERC form address property-specific details. A lease often includes conditions that could affect a property's marketability, similar to the care given to details in the ERC analysis.

Dos and Don'ts

When filling out the ERC Broker Market Analysis form, there are important dos and don'ts to consider. Your accuracy and thoroughness can significantly influence the analysis outcome. Below are the key points to keep in mind.

Do carefully review all information before submission.
Do follow the specific guidelines provided by the requesting company.
Do include state-specific disclosure requirements as needed.
Do estimate the Most Likely Sales Price based on accurate market data.
Do document any features of the property that may affect its insurability.
Don't regard this form as a home inspection or appraisal.
Don't omit required inspections and disclosures relevant to the property.
Don't speculate on data; rely on factual, verifiable information.
Don't ignore the condition of the property when making recommendations for repairs.

Misconceptions

It's an Appraisal: Many believe that the ERC Broker Market Analysis form functions as a formal appraisal. In reality, it is not an appraisal and should not be used as one. The analysis estimates the Most Likely Sales Price based on various property factors but lacks the comprehensive assessment conducted during an appraisal.
Home Inspection: Some think this report serves as a home inspection. However, the form does not replace a thorough inspection of the property. It only allows for an analysis of conditions visible during the broker’s evaluation.
Guarantees Sales Price: A common misconception is that the Most Likely Sales Price (MLSP) is guaranteed. Instead, the MLSP is an estimate influenced by current market conditions, property evaluation, and competition; it does not assure any specific selling price.
Uniform Standards Compliance: Some users may assume the report adheres to the Uniform Standards of Professional Appraisal Practice (USPAP). This form explicitly states that it is not compliant with USPAP guidelines, highlighting it is a different kind of analysis.
Always Applicable Across States: People often believe this form can be used universally without adjustments. Each state has its specific disclosure requirements that must be acknowledged and incorporated into the report where necessary.

Key takeaways

1. Understand the Purpose: The Erc Broker Market Analysis form serves as a tool for real estate brokers to evaluate a property’s condition, market competition, and potential sales price. It’s important to note that this is not an appraisal or home inspection.

2. Estimate the Most Likely Sales Price (MLSP): An accurate estimate of the subject property’s sales price is essential. This estimate should reflect the property’s “as is” condition and consider marketing timelines of up to 120 days unless directed otherwise.

3. Be Aware of Local Regulations: Each state may have specific disclosure requirements that need to be incorporated into the analysis. It’s crucial to stay informed about local laws to ensure compliance while completing this form.

4. Gather Detailed Information: The form requires comprehensive information, including property details, neighborhood characteristics, and any potential issues that could affect marketability. Collect as much relevant information as possible before filling it out.

5. Review and Follow Procedures: Adhere to the requesting company’s guidelines when conducting property inspections and submitting the report. Proper documentation and following protocols will enhance the credibility of your analysis.

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