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Fill in Your Erc Broker Market Analysis Template

The Worldwide ERC® Broker’s Market Analysis and Strategy Report serves as an essential tool for real estate brokers tasked with evaluating the condition, competition, and future marketability of a property. It provides a comprehensive analysis to estimate the property’s Most Likely Sales Price based on various factors. Understanding this form is crucial for brokers who must adhere to state-specific disclosure laws while conducting their analyses.

Table of Contents

The Worldwide ERC® Broker’s Market Analysis and Strategy Report serves as a critical tool for real estate brokers seeking to assess a property’s market potential comprehensively. By allowing brokers to evaluate the condition of the subject property, its competitive landscape, and future marketability, the form facilitates the estimation of the Most Likely Sales Price (MLSP). While it provides insights for effective pricing strategies, it is crucial to distinguish that this report does not replace a home inspection or an appraisal. It specifically centers on a comparative market analysis, which means any conclusions reached should not be treated as an official appraisal under the Uniform Standards of Professional Appraisal Practice. The form also necessitates that brokers account for state-specific disclosure requirements, ensuring compliance and thoroughness. Procedural guidelines outlined in the report assist the broker in managing communication and inspections, while sections detail pertinent information regarding the subject property’s current condition, improvements, and its unique characteristics, whether influenced by location or features. Furthermore, this document encourages brokers to identify necessary repairs, improvements, and any structural issues that may impact the property’s insurability and marketability. Overall, this report is an essential resource for brokers to strategically approach pricing and marketing a property in today’s competitive real estate market.

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

↓ Erc Broker Market Analysis PDF

File Specs

Fact Name	Details
Purpose	The form facilitates a thorough market analysis of a property's condition, competition, and marketability.
Sales Price Estimate	It helps brokers estimate the Most Likely Sales Price (MLSP) based on the property’s current condition.
Not an Appraisal	This is not an appraisal and does not comply with the Uniform Standards of Professional Appraisal Practice.
State-Specific Requirements	Prepares must consider state-specific disclosure requirements and incorporate them accordingly.
Maximum Marketing Time	The analysis assumes a marketing time not exceeding 120 days unless directed otherwise.
Inspections and Repairs	Includes recommendations for necessary repairs, categorized as interior and exterior items.
Financing Options	Identifies potential means of financing for the property, including FHA and VA options.
Neighborhood Analysis	The report defines both a subject neighborhood and a broader market area for comparative analysis.
Marketing Concessions	Offers guidance on possible marketing concessions to improve the property's appeal to buyers.
Expiration Date	The form is valid until December 31, 2009, and was last revised in January 2009.

Erc Broker Market Analysis - Usage Guidelines

Completing the ERC Broker Market Analysis form accurately is crucial for providing a thorough analysis of the property in question. The information collected will help assess market conditions and establish a Most Likely Sales Price. Following these steps will ensure that all necessary details are captured effectively.

Obtain the form from the requesting company.
Fill in the information section at the top of the form. Include your file number, homeowner(s) names, property address, and contact numbers.
Provide the details of the requesting company, including its name, contact person, email, and address.
In the assignment section, enter the name of the real estate firm, contact person, address, and fax number.
Record the homeowner’s purchase price and date of purchase in the appropriate fields.
Detail any improvements made to the property, if applicable.
Indicate whether the property is currently listed for sale and provide the listing company or agent’s information.
Specify the form of ownership and occupancy status (e.g., homeowner, tenant, vacant).
Describe the type of the property (e.g., condo, single-family home) and provide details on any personal property that will remain with the property.
Summarize the property's lot characteristics and view, noting any positive or negative aspects.
Document any locational issues that may affect insurability in the designated section.
Check the boxes relevant to the site characteristics known to you, including private street access and whether the street is paved.
Provide information about miscellaneous factors that could affect property marketability, using the checklist provided.
Conduct a property inspection and check all applicable condition issues. Include comments as needed.
Estimate repair costs by listing necessary interior and exterior improvements, detailing specifics and estimated costs for each item.
List any required inspections along with their types (e.g., municipal, environmental).
Identify the most probable means of financing available for the property, along with any potential issues that may arise.
Describe the neighborhood and broader market area, including price ranges and sales activity trends.
Complete the comparable sales section by entering details of similar properties sold in the area.
Finish the form by noting any comments, marketing concessions, and information on competing listings.

Once you have filled out the form, it should be reviewed to ensure all necessary fields are completed accurately. After that, submit the form according to the guidelines provided by the requesting company.

Your Questions, Answered

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

The ERC Broker Market Analysis form is designed to assist real estate brokers in conducting a thorough assessment of a property. The aim is to evaluate the property's condition, competition, and potential marketability. Brokers use this analysis to estimate the Most Likely Sales Price of a property, based on its current state and the expected timeframe for a sale. It is important to note that this form is not an appraisal or a home inspection, and cannot be used as such.

What is the Most Likely Sales Price (MLSP) and how is it determined?

The Most Likely Sales Price (MLSP) is an estimated price that a broker believes the property could sell for, given its current condition and market factors. This price estimate assumes the property will not stay on the market for longer than 120 days unless directed otherwise by the client. Brokers analyze various aspects of the property, such as its location, physical conditions, and recent comparable sales to arrive at this figure.

Are there any specific requirements that preparers of this form need to be aware of?

Yes, those preparing the ERC Broker Market Analysis form must be familiar with any state-specific disclosure requirements. These may include obligations to inform potential buyers about property conditions and other relevant information. It’s crucial for brokers to ensure that all necessary disclosures are included in the completed form, to comply with legal standards and protect all parties involved in the transaction.

What factors are considered when analyzing a property's marketability?

Several factors play a role in determining a property's marketability. These include its physical condition, the overall location and neighborhood, comparable sales data, and prevailing market trends. Additionally, issues such as unique characteristics of the property, existing liens, or special assessments can significantly impact its attractiveness to potential buyers. Thus, a comprehensive evaluation of both external and internal factors is essential for providing an accurate market analysis.

How do brokers handle inspections and the submission of the Market Analysis report?

Brokers must adhere to specific procedural guidelines when contacting homeowners, inspecting properties, and submitting their Market Analysis reports. This includes following the requesting company’s policies regarding inspections and required photographs. It’s important for the broker to communicate clearly with the homeowner to ensure that all necessary information is gathered and that the homeowner is comfortable with the inspection process.

Common mistakes

Neglecting to Follow State-specific Disclosure Requirements: Each state has its own rules when it comes to real estate transactions. Failing to include the necessary disclosures can lead to serious legal issues. Always check local laws before completing the form.
Skipping Necessary Field Descriptions: The form includes several fields meant to describe the property's condition, improvements made, and unique features. Omitting vital details can result in an inaccurate assessment and ultimately affect the sales price estimation.
Providing Incomplete Financial Information: It’s critical to accurately describe the financing options available for the property. Incorrectly outlining potential financing or neglecting to indicate necessary concessions may mislead potential buyers about their options.
Underestimating Market Trends: Understanding the local market is essential. Inspectors should provide a detailed analysis of conditions affecting property values. Overlooking these factors can lead to mispricing the property and extended market time.

Documents used along the form

The ERC Broker Market Analysis form is often used in conjunction with several important real estate documents. Each plays a vital role in assessing a property’s condition, marketability, and overall value. Familiarity with these forms will ensure a comprehensive understanding of property evaluations.

Comparative Market Analysis (CMA): This document compares the property to similar properties recently sold in the area. It helps determine the property’s market value based on real sales data.
Property Inspection Report: An inspection report outlines a property’s physical condition, highlighting any deficiencies. This report assists in uncovering repairs that may affect the property’s value.
Appraisal Report: Conducted by a licensed appraiser, this report provides an unbiased valuation of the property. It must comply with specific guidelines and typically assesses the property based on its condition, location, and market trends.
Listing Agreement: This agreement secures the broker’s right to list the property for sale on behalf of the homeowner. It specifies terms, such as commission rates and duration, ensuring clarity and accountability.
Seller Disclosure Statement: Required in many states, this document details any known issues with the property. It protects the seller from future claims by buyers regarding undisclosed defects.
Real Estate Purchase Agreement: This legally binding contract outlines the terms of the sale between buyer and seller. It includes price, contingencies, and timelines necessary for closing the sale.
Title Report: A title report provides verification of the property’s legal ownership and identifies any encumbrances, liens, or defects in the title. This ensures that the property is free of legal issues before transfer.
Marketing Plan: This document outlines strategies for advertising the property, targeting potential buyers, and successfully closing the sale. It includes timelines and specific actions for effective promotion.

Understanding and utilizing these forms alongside the ERC Broker Market Analysis enhances the evaluation process, promoting informed decision-making for buyers, sellers, and brokers alike.

Similar forms

The Comparative Market Analysis (CMA) is a document frequently used by realtors. It assesses the value of a property based on similar properties' sales in the area. While the ERC Broker Market Analysis focuses on estimating the Most Likely Sales Price, a CMA provides a broader view of market trends and conditions, allowing homeowners to understand how their property stands compared to others. Both documents rely on recent sales data, but a CMA often includes more extensive analyses of market conditions and trends.

The Appraisal Report is another key document in real estate transactions. Appraisers evaluate property value according to standardized methodologies, which go beyond the subjective analysis of a broker. Unlike the ERC form, which centers on marketability from a sales perspective, an appraisal provides a legally binding assessment often required by lenders. It includes more formalized standards and processes specific to local regulations and valuation practices.

The Property Inspection Report serves a different purpose, focusing primarily on the physical condition of the property. Inspectors identify issues that could affect the property's value or safety, providing a comprehensive check-up of systems like plumbing and electrical. In contrast, the ERC Broker Market Analysis emphasizes market conditions rather than the detailed mechanical assessment of the property itself.

The Seller Disclosure Statement is often required during home sales. It outlines known issues with the property that could affect its value. While the ERC Broker Market Analysis may note problems that influence marketability, the Seller Disclosure formalizes what the seller knows about the property's condition, creating a clear record for potential buyers.

The Rental Market Analysis (RMA) is essential for investors focusing on income properties. An RMA assesses potential rental rates by comparing other rental properties in the area. This parallels the ERC Broker Market Analysis's objective to evaluate a property for sale concerning its conditions and competition. However, the RMA emphasizes income potential rather than resale value.

The Listing Agreement outlines the contractual relationship between the seller and the agent. This document details terms for listing a property on the market. While the ERC Broker Market Analysis assists in setting a fair price, the Listing Agreement serves as the formal authority that authorizes agents to market the property, thus establishing reciprocity in the selling process.

The Closing Statement is critical for finalizing a property transaction. It includes all financial details, such as sale price, adjustments, and agent commissions. Unlike the ERC Broker Market Analysis, which is preparatory, the Closing Statement confirms the results of the entire sales process and ensures all parties meet their obligations before the deal closes.

The Title Report reveals the legal status of the property and any existing liens or claims. While the ERC Broker Market Analysis assesses physical and market conditions, the Title Report provides a legal perspective. It ensures that the property ownership is clear and free of issues that could impede a sale.

The Marketing Plan outlines strategies to promote a property effectively. It often utilizes insights from market analyses to inform pricing and targeting strategies. The ERC Broker Market Analysis contributes valuable data but does not serve as a comprehensive marketing tool; rather, it supports a more extensive plan to market the property based on gathered intelligence.

The BPO (Broker Price Opinion) is similar to the ERC form in that both assess property value. However, BPOs are often used for lender purposes and are more targeted toward foreclosure properties. While the ERC Broker Market Analysis is geared toward evaluating a property’s market condition for sale, a BPO primarily serves lenders who need quick evaluations for mortgage decisions.

Dos and Don'ts

When filling out the ERC Broker Market Analysis form, it is crucial to adhere to best practices to ensure clarity and accuracy. Here are eight essential do's and don'ts:

Do provide accurate and complete information regarding the property, including all relevant details about improvements and ownership.
Do follow the requesting company’s guidelines for contacting homeowners and conducting inspections.
Do check for state-specific disclosure requirements and ensure they are included in the analysis.
Do mention any existing issues that could impact the property’s insurability and marketability.
Don't confuse the purpose of this analysis with a home inspection or appraisal; they serve different functions.
Don't skip sections; every part of the form is designed to gather critical information and should be completed thoroughly.
Don't underestimate the importance of accurately estimating the Most Likely Sales Price based on market data.
Don't overlook the significance of commenting on external factors that may affect the property, such as neighborhood issues or economic conditions.

Misconceptions

Misconception 1: The Erc Broker Market Analysis form is an appraisal.

This form does not serve as an appraisal. Instead, it provides a comparative market analysis aimed at estimating the Most Likely Sales Price based on various property details and market conditions.

Misconception 2: The analysis is a home inspection.

While the Erc Broker Market Analysis includes comments on the condition of the property, it is not a home inspection. The purpose is to analyze market factors rather than evaluate the property's structural integrity.

Misconception 3: The Most Likely Sales Price is fixed and absolute.

The Most Likely Sales Price (MLSP) is an estimate based on the property's current condition and market conditions. It is subject to change as these factors fluctuate.

Misconception 4: All necessary disclosures are included in the form.

The form requires preparers to be aware of and include any state-specific disclosure requirements. Therefore, completeness may vary according to local regulations.

Misconception 5: The analysis applies universally to any market.

This form is tailored to the specific property and its surrounding market. The analysis will differ significantly based on local real estate trends and conditions.

Misconception 6: The form can only be completed by licensed appraisers.

While knowledge of real estate markets is beneficial, the form can be completed by real estate brokers who follow necessary procedural guidelines.

Misconception 7: The analysis disregards external factors impacting property value.

The form considers various external factors impacting marketability, such as neighborhood characteristics, economic conditions, and proximity to amenities, providing a comprehensive overview.

Key takeaways

The ERC Broker Market Analysis form helps real estate brokers assess the condition and marketability of a property, not to be confused with an appraisal or home inspection.
Completing the form requires gathering information about the property, including its physical condition, improvements made by the homeowner, and property listing details.
The analysis focuses on estimating the Most Likely Sales Price (MLSP), which reflects the property's condition "as is" and projected marketing time.
It is essential to adhere to any relevant state-specific disclosure requirements when preparing this form.
Property condition evaluations should include checking for evidence of damage, outdated decor, and necessary repairs that may necessitate improvements.
Consideration of neighborhood dynamics, market conditions, and current economic factors is essential when assessing the property's marketability.
Documenting any competitive listings in the area provides context for pricing and selling strategy.
Marketing concessions or incentives may be addressed in the analysis to enhance buyer attractiveness.
Research and detail any relevant financing options and potential issues that could affect securing a sale, such as HOA regulations or environmental concerns.

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