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Erc Broker Market Analysis Form

The Worldwide ERC® Broker's Market Analysis and Strategy Report is a specialized tool used by real estate brokers to perform an in-depth analysis of a property's condition, local competition, and overall marketability. Its main goal is to estimate the property's Most Likely Sales Price (MLSP) based on its current state and expected market conditions within a set timeframe, although it distinctly clarifies that it is not an appraisal or home inspection. Ready to get a comprehensive market analysis for your property? Click the button below to fill out your form.

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In today's dynamic real estate market, accurate and comprehensive market analyses are indispensable for brokers aiming to estimate a property's Most Likely Sales Price (MLSP). The Worldwide ERC® Broker’s Market Analysis and Strategy Report plays a crucial role in this process by empowering brokers to undertake a meticulous evaluation of a property's condition, its competitive standing in the marketplace, and its overall future market potential. This detailed analysis extends beyond mere appraisals and home inspections, embodying a holistic approach to comparative market assessment without conforming to the Uniform Standards of Professional Appraisal Practice, distinguishing it from standard appraisal practices. It emphasizes the paramount importance of understanding state-specific disclosure requirements, ensuring that brokers incorporate such mandates effectively within their assessments. By adhering to a prescribed set of procedural guidelines for property inspection, report submission, and photographic documentation as dictated by their clientele, brokers can formulate an "as-is" condition-based MLSP. This price point takes into consideration a marketing timeline not exceeding four months, subject to client directions, thereby offering a tailored, insightful, and practical tool for real estate market analysis.

Sample - Erc Broker Market Analysis Form

Worldwide ERC® Broker’s Market Analysis and Strategy Report

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

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

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

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

Form Information

Fact Name	Details
Purpose of the Form	Enables real estate brokers to conduct a diligent analysis of the property’s condition, competition, and future marketability to estimate its Most Likely Sales Price.
Not an Appraisal	This comparative market analysis is not performed in accordance with the Uniform Standards of Professional Appraisal Practice and cannot be used as an appraisal.
State-specific Disclosure	Preparers must be aware of and include any state-specific disclosure requirements in the form.
Procedural Guidelines	Guidelines include contacting the homeowner, inspecting the property, submitting the report, and providing photos as per the requesting company's procedures.
Estimation Basis	The Most Likely Sales Price is estimated based on the “as is” condition of the property and a marketing time not exceeding 120 days to a contract of sale or as directed by the client.
Expiry Date of the Form	This form expires on December 31, 2009.

Detailed Guide for Writing Erc Broker Market Analysis

Filling out the ERC Broker Market Analysis form is a detailed process that requires careful attention to each section. This form allows real estate brokers to provide a comprehensive analysis of a property's condition, its competition in the current market, and its future marketability. With this analysis, brokers estimate the property's Most Likely Sales Price (MLSP). It's important to be thorough and accurate when completing the form to ensure the most precise estimate. Below are step-by-step instructions to assist in filling out the form efficiently and accurately.

Start by entering the File #, Homeowner(s) name(s), Property Address, Home Phone #, City, State, Zip, Work Phone #, the name and contact information of the BMA Requested by (Co. & Contact), and Requesting Co. Address including phone and fax numbers.
Fill in the Real Estate Firm information that is assigned to this analysis including the contact name, email, address, and phone and fax numbers.
Under Assignment, provide the Agent Preparer's contact information and the Homeowner’s purchase price along with the Date purchased.
Document any Improvements made by the homeowner, indicate whether the subject is currently listed, and fill out all relevant details about the listing.
Detail the Form of Ownership, Occupant status, Type of property, and any personal property that remains.
Describe the Subject’s location type, Lot Characteristics, Subject’s view, and any Locational issues that may affect the property’s insurability.
Check all applicable Site Characteristics and Miscellaneous factors that you are aware of, which may affect the marketability or value of the subject property.
Under SUBJECT CONDITION INSPECTIONS/DISCLOSURES, tick the boxes and provide details for each property condition you're aware of or observe.
Fill in the Recommended Repairs and Improvements section with the estimated cost per item for both interior and exterior items.
List all required, customary, and additionally recommended inspections, including required disclosures.
Identify the most probable means of financing for the subject and describe the terms along with any financing concessions.
Define Subject Neighborhood and Broader Market Area, providing detailed market conditions and economic factors that might affect marketability.
For the COMPETING LISTINGS section, list down and compare the subject property to three competing listings, including detailed information about each competitor.
In the COMPARABLE SALES section, select sales within the last six months that are suitable and similar to the subject property and provide detailed comparisons.
Review the form for completeness and accuracy, then submit it as per the requesting company’s guidelines, alongside the necessary photos.

Once the form is completed and submitted, it will be used to assist in estimating the Most Likely Sales Price of the property, taking into account current market conditions and the specific attributes of the property. This information is vital for homeowners, real estate professionals, and potential buyers to understand the value and marketability of the property in question.

Important Points on Erc Broker Market Analysis

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

The purpose of this report is to provide a thorough analysis of a property's condition, compare it with other properties in the market, and assess its future marketability. The analysis conducted by the real estate broker aims to estimate the Most Likely Sales Price (MLSP) of the property based on its current condition and the expectation to sell within 120 days under normal marketing conditions. It's important to note that this report is not a home inspection or an appraisal, and it doesn't adhere to the Uniform Standards of Professional Appraisal Practice.

What are the key components of this report?

The report includes comprehensive information on the property, including homeowner details, improvements made, listing information, and the property's current status. It requires an in-depth look at the property’s location, including any locational issues that might affect its insurability or value. The condition of the property is thoroughly inspected for any defects or needed repairs, both internal and external. The report also covers details about the neighborhood, market conditions, competing listings, probable financing means, and necessary repairs and improvements with estimated costs.

What does "Most Likely Sales Price" mean?

The Most Likely Sales Price (MLSP) is an estimate of the price at which the property is most likely to sell given its current condition and the market dynamics within a marketing time not exceeding 120 days or as directed by the client. This estimation is crucial for homeowners and potential buyers to understand the market value of the property "as is."

Who needs to be aware of state-specific disclosure requirements?

Preparers of the Worldwide ERC® Broker’s Market Analysis and Strategy Report need to be acutely aware of and comply with any state-specific disclosure requirements. Since real estate laws and regulations can vary significantly from state to state, it’s essential that the report incorporates all requisite disclosures to ensure it meets the legal standards and fully informs all parties of any material facts that could affect the property’s value or marketability.

How are competitors and market conditions analyzed?

The report requires gathering detailed information about competing listings within the subject property’s neighborhood to understand its position in the market better. It looks at factors such as list prices, days on market, property conditions, and any seller concessions. Additionally, the broader market conditions are examined - this includes looking at economic factors, possible incentives or concessions needed, and the overall health of the real estate market in the broader area as it affects the subject property’s marketability and probable sale price.

Common mistakes

Filling out the Worldwide ERC® Broker’s Market Analysis and Strategy Report is a critical task that demands attention to detail, but several common mistakes can undermine its effectiveness. Understanding these mistakes can significantly impact the accuracy of the analysis and the estimated Most Likely Sales Price (MLSP).

One frequent error is overlooking the importance of accurately reporting the property's condition. Since the analysis is not a home inspection or an appraisal, there is a tendency to minimize the detailed assessment of the home's current state. However, this oversight can lead to an unrealistic estimation of the MLSP, as the condition of the property plays a crucial role in determining its market value.

Another mistake involves incorrect identification and analysis of comparable listings and sales. This comparative market analysis hinges on selecting properties that closely mirror the subject in terms of location, features, and condition. A misstep here could mean a comparison with properties that are not truly comparable, skewing the MLSP estimation.

Additionally, failing to thoroughly understand and incorporate the locational factors mentioned in the form can detract from the analysis's accuracy. Factors such as proximity to environmental sites, busy streets, or industrial areas can significantly affect a property's appeal and, consequently, its valuation. Ignoring or underestimating these factors can lead to an inaccurate market analysis.

Moreover, underestimating the influence of the subject property’s improvements or lack thereof is another common pitfall. Whether the subject property is over-improved or under-improved for the area can significantly impact its marketability and price. Over-improvements in particular can be a tricky aspect, as they may not always result in a proportionate increase in value.

Ignoring market dynamics such as absorption rate, average days-on-market, and current economic conditions in both the subject neighborhood and the broader market area can also mislead the analysis. These dynamics offer insights into the market’s health and liquidity, which are essential for setting a realistic and attainable MLSP.

Another critical oversight is not adequately addressing the financing options and potential issues thereof. The type of financing most probable for the subject property can affect its saleability, and any impediments to securing financing could significantly impact the MLSP.

Furthermore, not properly considering the homeowners' association (HOA) details, including fees, special assessments, and restrictions, can lead to an incomplete analysis. Since these factors can influence a buyer's decision-making process, they should be meticulously detailed and factored into the analysis.

Lastly, a common mistake is providing inaccurate or unclear additional comments and recommendations at the end of the report. These comments are critical in providing context and justifications for the analysis conducted and the MLSP estimated. Vague or incorrect comments can detract from the report’s overall credibility and usefulness.

Understanding and avoiding these common mistakes can enhance the quality and reliability of the Worldwide ERC® Broker’s Market Analysis and Strategy Report, ultimately leading to more accurate property valuations and marketing strategies.

Documents used along the form

When dealing with real estate transactions, especially those involving the Worldwide ERC® Broker’s Market Analysis and Strategy Report, a range of additional documents and forms often come into play. These documents help in providing a more comprehensive understanding of the property in question, its market value, and the conditions affecting its sale. Here are five key documents commonly used alongside the ERC Broker Market Analysis form:

Listing Agreement: This contract establishes the relationship between the property seller and the real estate broker. It outlines the broker's responsibilities, the duration of the agreement, and the commission structure. This document is crucial as it gives the broker the authority to act on behalf of the seller.
Residential Purchase Agreement: This form is used when an offer is made to purchase a property. It details the terms of the sale, including the purchase price, financing arrangements, inspections, closing conditions, and any items included or excluded from the sale.
Seller’s Disclosure Statement: This document requires the seller to disclose any known defects or issues with the property. It covers a wide range of items, including but not limited to, the condition of the roof, plumbing, electrical systems, and any history of pest infestations or water damage.
Home Inspection Report: Though the ERC Broker Market Analysis form is not a substitute for a home inspection, the actual inspection report provides an in-depth look at the property’s structural and mechanical condition. It highlights any issues that might need repair or replacement, giving both sellers and buyers critical information before proceeding.
Closing Disclosure: This form is used in the final stages of the home buying process. It outlines the actual closing costs compared to the initial loan estimate and provides detailed information on the mortgage loan terms, lender's fees, and any other costs associated with the transaction.

In addition to these documents, there are many other forms and reports that might be necessary depending on the specific circumstances of the sale, such as a lead-based paint disclosure for older homes or a flood zone statement. Each plays a vital role in ensuring transparency, fairness, and legal compliance throughout the real estate transaction process.

Similar forms

The Comparative Market Analysis (CMA) report from a real estate broker closely resembles the Worldwide ERC® Broker's Market Analysis form in its purpose and content. Both documents are geared to assess a property's market value by comparing it to similar properties in the area. They examine aspects such as location, condition, size, and amenities, though the ERC form includes a broader array of details, such as the property's submission procedure and marketing strategy recommendations.

A Home Inspection Report, although distinct in its primary focus, shares some similarities with the ERC form, particularly in the scrutiny of a property’s condition. While the ERC form dabbles lightly in property condition as one element influencing marketability and value, the Home Inspection Report dives deep into the property's physical state, identifying potential issues that could affect its sale or valuation.

The Real Estate Appraisal Report provides a professional's opinion on the value of a property, much like the most likely sales price estimate in the ERC form. However, appraisals adhere strictly to the Uniform Standards of Professional Appraisal Practice (USPAP) and are more formal, often required by lenders to secure a mortgage. The ERC form, conversely, is not considered an official appraisal but rather a market analysis tool.

The Listing Agreement between a homeowner and a real estate agent also shares traits with the ERC’s form, specifically in terms of marketing strategies. While the ERC form suggests marketing tactics based on the property analysis, the listing agreement sets the contractual basis for promoting and selling the property, including commission rates and listing duration.

Property Disclosure Statements that sellers are often required to provide in real estate transactions have a common ground with the ERC form's section on inspections and disclosures. Both documents deal with revealing the condition of the property, including any known issues or defects, to inform potential buyers and aid in the transparency of the sale.

The Purchase Offer, or sales contract, while fundamentally a document signaling a buyer's intent to purchase, converges with the ERC form in its reliance on accurate property analysis. The ERC form's estimated market value aids in setting a realistic offer price, grounded in the comparative market analysis.

An Exclusive Right to Sell Listing is an agreement granting a specific real agent the exclusive rights to sell a property, which is related to the marketing and sales strategy part of the ERC form. Both documents encompass the understanding that a well-represented property, backed by thorough analysis, can achieve an optimal sales outcome.

Lease Agreements, while primarily used for rental arrangements, intersect with the ERC form in terms of property condition and value assessments. Understanding the current market value and state of a property can inform lease terms, rent pricing, and maintenance responsibilities.

Homeowners Association (HOA) Documents, particularly those detailing rules, assessments, and fees, parallel the ERC form's sections on property location and miscellaneous issues that may affect marketability. Both sets of documentation emphasize factors external to the property itself but critical in influencing its value and desirability.

The Pre-listing Home Preparation Guide, often provided by real estate agents to sellers, complements the ERC form’s focus on maximizing a property’s marketability. Recommendations for repairs, renovations, and staging found in such a guide are aimed at improving property condition and appeal, reflecting the ERC form's assessment of repair needs and improvement suggestions.

A Mortgage Pre-approval Letter, while a document from a potential buyer’s lender indicating loan amount eligibility, relates to the ERC form’s section on financing. Understanding the probable means of financing for a property can shape the marketing and negotiation strategies, ensuring a smoother sales process.

Dos and Don'ts

When filling out the ERC Broker Market Analysis form, it's important to navigate the process with care to ensure accuracy and compliance. Here's a guide featuring a mix of do's and don'ts to assist you:

Do thoroughly review the property in question to accurately reflect its condition, unique features, and any improvements made by the homeowner.
Don't rush through the inspection process. Overlooking details can lead to inaccurate reporting which may affect the property's Most Likely Sales Price (MLSP) estimation.
Do adhere to any state-specific disclosure requirements. These are crucial for compliance and may vary significantly from one state to another.
Don't treat the analysis as a home inspection or an appraisal. This report has a specific purpose and does not comply with the Uniform Standards of Professional Appraisal Practice.
Do follow the procedural guidelines provided by the requesting company for contacting homeowners, inspecting the property, submitting the report, and providing photos.
Don't neglect to check all items under subject condition inspections/disclosures. Accurate checking and reporting of the property's condition are crucial.
Do consider the marketability issues and clearly report any known or observed drawbacks that may affect the sale or insurability of the property.
Don't forget to include all necessary information about the neighborhood and broader market area as these factors play a significant role in determining the property's MLSP.
Do utilize the absorption rate calculation to accurately determine the estimated time to sell the property. This provides valuable insight into the current market conditions.

Remember, an accurate and detailed analysis benefits not just the seller and the buyer, but also enhances your reputation as a diligent and thorough professional.

Misconceptions

There are several misconceptions about the Worldwide ERC® Broker's Market Analysis and Strategy Report that need to be clarified to ensure a comprehensive understanding:

It's the same as a home inspection: The report does not function as a home inspection. Unlike a home inspection, which assesses the condition of a home in detail, this analysis focuses more on the property's marketability, comparing it to other similar properties in the area.
It's an official appraisal: Another common misconception is that this document serves as an official appraisal. However, it does not comply with the Uniform Standards of Professional Appraisal Practice and should not be considered an appraisal.
It applies universally without modifications: The form must be adapted to include any state-specific disclosure requirements. Its content is not a one-size-fits-all, as real estate laws and disclosure requirements can vary greatly from one state to another.
It guarantees the Most Likely Sales Price (MLSP) will be the final sale price: While the analysis aims to estimate the property's MLSP, the actual sale price can vary due to market conditions, negotiations, and other factors.
All sections are mandatory for every property: Depending on the specifics of the property and its market, some sections of the form may not apply. It is important to approach each section with the particular context of the property in mind.
It only considers the physical aspects of the property: While physical characteristics are important, the form also requires analysis of external factors like location, market conditions, and even local economic conditions that may affect marketability.
There’s no need for photos or homeowner contact: Contrary to this belief, procedural guidelines suggest contacting the homeowner, inspecting the property, providing photos, and following additional steps as required by the requesting company. Photos and direct information from the homeowner can significantly impact the accuracy of the analysis.

Correcting these misconceptions is crucial for effectively utilizing the Worldwide ERC® Broker's Market Analysis and Strategy Report and ensuring that its findings are accurately interpreted and applied.

Key takeaways

Completing the Worldwide ERC® Broker’s Market Analysis and Strategy Report involves several key steps and considerations designed to provide a thorough understanding of a property's market positioning and potential sales price. Here are eight crucial takeaways:

The report's goal is to meticulously assess the property's condition, competition, and marketability, leading to an estimation of the property's Most Likely Sales Price based on its current state and within a marketing timeframe not exceeding 120 days.
This document is not a substitute for a home inspection or an appraisal, and it does not comply with the Uniform Standards of Professional Appraisal Practice. It's important not to mistake it for or use it as an appraisal.
Preparation of this form requires awareness of state-specific disclosure requirements. These must be included as applicable to ensure the report's comprehensiveness and legal compliance.
Procedural guidelines, including contacting the homeowner, inspecting the property, submitting the report, and providing photographs, should adhere to the requesting company's specified instructions.
Extensive property information is needed for accurate analysis. This includes homeowner details, improvements made, current listing status, ownership form, occupant status, type of property, and characteristics of both the subject property and its location.
The form also requires detailed analysis of the subject property's condition, suggesting potential repairs and improvements with estimated costs. This section helps in understanding the financial aspects that might impact the Most Likely Sales Price.
Consideration of the financing aspects, including probable financing means, necessary financing concessions, and potential issues affecting financing ability, plays a crucial role in evaluating the property's marketability.
The neighborhood and broader market area's conditions are assessed to provide context to the property’s positioning. This includes evaluating active listings, competing sales, and other factors influencing market dynamics, such as economic conditions, corporate movements, and inventory supply rates.

Together, these elements enable a comprehensive market analysis that supports brokers in making informed estimations about a property's market value and strategizing accordingly for its sale.

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