The Erc Broker Market Analysis form serves as a comprehensive tool for real estate brokers to evaluate a property’s condition, competition, and future marketability. This report aids brokers in estimating the Most Likely Sales Price of a property based on its current state and market conditions. It is essential for brokers to adhere to state-specific disclosure requirements while completing the form.
To begin your analysis, please fill out the form by clicking the button below.
Key Takeaways for Filling Out the ERC Broker Market Analysis Form:
When filling out the ERC Broker Market Analysis form, there are several important guidelines to follow. Below is a list of dos and don'ts to ensure the process is smooth and effective.
Neglecting to Provide Accurate Property Information: Many individuals fail to include precise details about the property. This includes the correct address, the homeowner's name, and the file number. Missing or incorrect information can lead to confusion and delays in the analysis process.
Overlooking State-Specific Disclosure Requirements: Each state has its own disclosure laws that must be adhered to. Ignoring these can result in legal repercussions. It’s crucial to familiarize yourself with these requirements and ensure they are included in the form.
Inadequate Assessment of Property Condition: Some individuals rush through the property condition section. This can lead to overlooking significant issues such as water damage or structural problems. A thorough inspection and accurate reporting of these conditions are vital for an effective analysis.
Failing to Identify Competing Properties: A common mistake is not properly identifying and analyzing comparable properties. This includes overlooking recent sales or listings that are similar in size and location. A comprehensive comparison is essential to estimate the Most Likely Sales Price accurately.
Ignoring Financing Considerations: Some preparers neglect to comment on potential financing issues that could impact the sale. It’s important to identify any anticipated challenges related to financing options, as these can affect both the buyer's ability to purchase and the property's marketability.
The Comparative Market Analysis (CMA) report serves a similar purpose to the ERC Broker Market Analysis form. Both documents aim to provide an estimate of a property's value based on recent sales of similar properties in the area. A CMA typically includes details about the subject property, comparable properties, and market trends, allowing real estate agents to present a well-informed price recommendation to sellers. While the CMA is often used for residential properties, it can also be adapted for commercial real estate, making it a versatile tool in the market analysis process.
The Property Condition Report (PCR) is another document that shares similarities with the ERC Broker Market Analysis form. This report focuses primarily on the physical condition of a property, outlining any repairs needed and assessing the overall state of the home. Like the ERC form, the PCR helps real estate professionals understand the implications of a property's condition on its marketability and value. It often includes detailed observations regarding structural integrity, safety issues, and necessary maintenance, thus informing potential buyers and sellers about the property's true state.
The Appraisal Report is a formal document prepared by a licensed appraiser to determine a property's fair market value. While the ERC Broker Market Analysis is not an appraisal, both documents analyze similar factors, such as location, condition, and comparable sales. An appraisal is often required by lenders for financing purposes, whereas the ERC form is more of a preliminary analysis to guide real estate brokers in pricing strategies. Both are essential in understanding a property's worth, albeit from different perspectives.
The Home Inspection Report is closely related to the ERC Broker Market Analysis form as it provides a detailed examination of a property's condition. Home inspectors assess various aspects of the home, including structural elements, systems, and safety features. While the ERC form estimates marketability and pricing, the home inspection report focuses on identifying issues that could affect a buyer's decision. Both documents play a crucial role in the real estate transaction process, ensuring that buyers and sellers are informed about the property's condition.
The Listing Agreement is another document that bears similarities to the ERC Broker Market Analysis form. This agreement outlines the terms between the seller and the broker regarding the sale of a property. While the ERC form provides an analysis to help determine the most likely sales price, the listing agreement formalizes the broker's role in marketing the property. Both documents are integral to the selling process, as they establish expectations and guidelines for the sale.
In understanding the various documents used in real estate transactions, it's also essential to recognize the importance of the Georgia PDF Trailer Bill of Sale, which functions similarly by documenting ownership transfer, ensuring legal protection for both buyers and sellers during trailer sales in Georgia.
The Seller's Disclosure Statement is a document that requires sellers to disclose known issues with the property to potential buyers. This statement often complements the ERC Broker Market Analysis form by providing additional context regarding the property's condition and any factors that could affect its marketability. Both documents work together to ensure transparency in real estate transactions, helping buyers make informed decisions based on the property's condition and history.
The Market Analysis Report (MAR) is another document similar to the ERC Broker Market Analysis form. This report focuses on the broader market trends and conditions affecting property values in a specific area. It includes data on sales trends, average days on market, and economic factors. While the ERC form provides a specific analysis of a property, the MAR gives a wider view of the market, helping brokers understand the competitive landscape and adjust their strategies accordingly.
The Listing Presentation is a document used by real estate agents to present their marketing plan and value proposition to potential sellers. Similar to the ERC Broker Market Analysis form, the listing presentation includes an analysis of the property and its market context. It aims to persuade the seller to choose the agent as their representative. Both documents emphasize the importance of understanding the property’s value and market conditions to effectively sell the home.
The Buyer’s Market Analysis is a document that focuses on the conditions and trends affecting buyers in a specific area. This analysis often includes information about inventory levels, pricing trends, and competition. While the ERC Broker Market Analysis form is tailored for sellers, the buyer’s market analysis provides insights for potential buyers, helping them understand the market dynamics. Both documents are essential for different stakeholders in the real estate market, ensuring informed decision-making.
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The ERC Broker Market Analysis form is designed to help real estate brokers analyze the condition of a property, its competition, and its potential marketability. By conducting this analysis, brokers can estimate the property's Most Likely Sales Price (MLSP). It's important to note that this is not a home inspection or an appraisal, and should not be used as such.
When preparing the form, follow these steps:
The form requires various details, including:
The MLSP is based on the property's current condition and assumes a marketing time of no more than 120 days. Brokers should consider factors such as recent sales of comparable properties, current market conditions, and any unique aspects of the subject property that may influence its value.
Yes, preparers of the ERC Broker Market Analysis form must be aware of and comply with any state-specific disclosure requirements. This means including any necessary disclosures in the form to ensure compliance with local laws and regulations.
If you encounter any issues while conducting the analysis, such as significant property damage or concerns about insurability, document these findings in the form. It's crucial to provide accurate and detailed information, as this will help in making informed decisions regarding the property’s marketability and pricing strategy.
Worldwide ERC® Broker’s Market Analysis and Strategy Report
Purpose: This report is designed to enable the real estate broker to conduct a diligent analysis of the subject property’s condition, competition, and future marketability. Based on this analysis, the broker is to estimate the subject property’s Most Likely Sales Price.
This is not a home inspection. Nor is this an appraisal; this comparative market analysis has not been performed in accordance with the Uniform Standards of Professional Appraisal Practice. It is not to be construed as an appraisal and may not be used as such for any purpose. Preparers of this form need to be aware of any state-specific disclosure requirements and include them in this form as appropriate.
Procedural Guidelines: For procedures on contacting homeowner, inspecting property, submitting report, and providing photos, follow the requesting company’s guidelines. The Most Likely Sales Price (MLSP) is based on “as is” condition and a marketing time not to exceed 120 days to a contract of sale or as directed by the client.
INFORMATION
File #:
Homeowner(s):
Property Address:
Home Phone #:
City, State, Zip:
Work Phone #:
BMA Requested by (Co. & Contact):
e-mail:
Requesting Co. Address:
Phone #:
Fax #:
ASSIGNMENT
Real Estate Firm:
Contact Name:
Real Estate Firm Address:
Agent Preparer:
Homeowner’s purchase price: $
Date purchased:
Improvements made by homeowner if any:
Is the subject currently listed?
□ Yes
□ No
Listing Company/Agent:
Form of Ownership:
□ Fee Simple
□ Leasehold
Occupant:
□ Homeowner
□ Tenant
□ Vacant
Type: □ Condo
Coop
PUD
Single Family
Mixed Use
Town House
Modular
Mobile Home
SUBJECT
□ Other:
Indicate any personal property that remains (e.g., refrigerator, range, etc):
Subject’s location type:
□ Urban
□ Suburban
□ Distant suburban
□ Rural
□ Farm
□ Resort
Lot Characteristics: positive/negative (explain):
Subject’s view: positive/negative (explain):
Locational issues OF WHICH you are aware that may affect the insurability of the property:
LOCATION
Site Characteristics of which you are aware (check all that apply):
□ Private Street Access
□ Private Street Maintenance
□ Gated
□ Alley
□ Easements/Encroachments
□ Sidewalk
□ Curbs/Gutters
□ Street Lighting
□ Paved Street Surface
□ Paved Driveway Surface
Miscellaneous of which you are aware (check all that apply):
□ Maintenance issues with neighboring properties
□ Excess acreage or land
□ Mobile homes/trailer park nearby
□ Subject located on or near designated environmental sites
□ Location next to agricultural area
□ Close proximity to hospital/firehouse, etc.
□ Neighborhood has restrictive covenants
□ Subject located near railroad tracks
□ Audible street or highway noise present
□ Located on or backs up to busy/main street
□ Location in flood plain
□ Location in earthquake zone
□ Location next to school or public park
□ Property located on corner lot
□ Access to subject property
□ Location near/in view of power lines/water towers/ radio towers
□ Location next to industrial area
□ Located on airport flight path
□ Additional Comments:
Check all other items of which you are aware that may affect the marketability or value of the subject property and comment below:
□ Style of home not typical for the area
□ Subject is over improved
□ Subject is under improved
MISCELLANEOUS
□ Inadequate parking
□ Functional obsolescence
□ Steep driveway
□ Proposed land use change
□ Little sales activity in area or price range
□ Estimated time to sell is more than 120 days
□ Proposed or pending assessments
□ Property taxes not typical for area
□ HOA has first right of refusal
□ HOA does not allow “for sale” signs on property
□ HOA fees not typical for the area
□ Other
Comments:
Copyright © 2008 by Worldwide ERC®
Rev. 01/07/2009
This Form Expires 12/31/2009
Page 1 of 6
SUBJECT CONDITION
INSPECTIONS/DISCLOSURES
Property Condition
For all the following of which you are aware or observe in viewing the property, check the appropriate box(es) and describe:
□Décor of home is personalized or dated:
□Incomplete construction:
□Evidence of past or present water damage:
□Cracks or stains on walls, floors, or ceilings:
□Oil tank (abandoned):
□Oil tank (in use):
□Underground storage tank (abandoned):
□Underground storage tank (in use):
□Synthetic stucco:
□Suspected structural problems:
□Evidence of odor:
□Evidence of pet damage:
□Evidence of deferred maintenance: Additional Comments:
Recommended Repairs and Improvements
Interior Items
R&I Estimates
□ Paint
Estimated cost per item: $
Comment:
□ Flooring
□ Wall paper removal
□ Appliances
□ Cabinets
□ Light fixtures
□ Countertops
□ Bathroom fixtures
Total Estimated Cost for Interior Repairs
$
Exterior Items
□ Landscaping
□ Driveway/walkway
□ Porch/deck
□ Pool
□ Spa
Estimated cost per item :$
□ Gutters
□ Siding
□ Trim
□ Roof
□ Detached structures
□ Debris removal
□ Windows and screens
Total Estimated Cost for Exterior RepairS
List all required, customary and additionally recommended inspections (e.g., municipal, certificate of occupancy, environmental, etc.): Required:
Customary:
Additionally recommended for the subject property:
Subject property issues OF WHICH you are aware that may affect insurability of the subject property:
List all required disclosures:
Page 2 of 6
Identify the most probable means of financing for the subject:
□ FHA
□ VA
□ Cash
□ Conventional mortgage—conforming or jumbo
Describe the terms of the financing type identified above:
Identify and describe any financing concessions that may be necessary to secure the sale of the subject property.
□ Points:
□ Closing Costs:
FINANCING
Do you anticipate any issues that may affect the ability to secure financing for the subject property (e.g., condition, zoning, environmental, HOA, etc.)?
□ Yes □ No
If yes, comment:
If the subject property is a common interest development (e.g., condo, townhouse, PUD), what is the ratio of owners to investors?
□ N/A
Owners:
%
Investors:
(total MUST equal 100%)
HOA Fees: $
How often are they paid?
□ Monthly
□ Quarterly
□ Semi-annually
□ Annually
Items included in HOA Fees: □ Trash Pick-up
□ Snow Removal
□ Exterior Building Maintenance
□ Security/Concierge Services
□ Insurance
□ Taxes
□ Amenities
□ Common Area Maintenance
WATER
SEWER
Are you aware of any special assessments covered by the HOA?
If yes, indicate the amount of assessment: $
Describe what the special assessment covers:
Subject Neighborhood (For purposes of this report, the subject neighborhood is defined by the preparer of this form. Identify what you regard as the
subject neighborhood and then use statistics that you have gathered which reflect that market area. Note: the neighborhood might be a MLS area, a
particular section of a town, a specific subdivision, or an entire community. This is described as the “micro area.”)
Subject neighborhood is defined as:
Price Range: $
to $
Property Values are: □ Increasing
% in past
months
□ Stable
Average Days-on-Market (list to contract)
days
□ Decreasing
(# of days)
Calculate the months supply of inventory (Absorption Rate):
Type of competing listings
New Homes
Resale
Number of active listings ÷
Avg. number of sales per month
=
Number of months needed
REO/Foreclosure
for the last 6 months
to sell existing inventory
Corporate
Total (MUST equal 100%)
100%
Describe all marketing concessions/incentives being offered to buyers and/or brokers on competing properties:
CONDITIONS
Recommend any marketing concessions/incentives that should be offered for the subject:
MARKET
Describe major corporation(s) in this neighborhood that are moving into, out of, or planning layoffs:
Describe current economic conditions (positive or negative) that may have an Effect on the marketability of the property:
Broader Market Area (For purposes of this report, the broader market area is defined as that area beyond the subject neighborhood in which buyers will
look for comparable properties. This is described as the “macro area.” In some instances, the broader market area will be the same as the subject’s
neighborhood. If this is the case, indicate it below.)
What do you consider the “broader market area” to be for this property?
Are there any specific issues in the broader market area which are not reflected in the specific neighborhood that might affect the sale of the subject property? Consider types of competing homes (e.g., new construction, REO’s); incentives or concessions that are occurring; economic conditions; a dramatically different price range than the subject; days on market; etc.
This Form Expire 12/31/2009
Page 3 of 6
COMPETING LISTINGS
ITEM
Competing Listing #1
Competing Listing #2
Competing Listing #3
Address, City
Current MLS #
Proximity to Subject
Original List Price
Current List Price
Seller Concessions
Last Price Change Date
Days-on-market (DOM)
from original list date
Previous listing history for last
Orig. List Price $
Last List Price $
Last List Price
12 months
DOM:
Style
□ Brick
□ Wood
□ Composite
□ Stone
Exterior Finish
□ Aluminum
□ Stucco
(Check all that apply)
□ Synthetic Stucco
□ Vinyl
□ Hardcoat Stucco
□ Slate
Roof Type
□ Tar
□ Tile
□ Wood shake
□ Tin
□ Asphalt shingle
□ Copper
□ None
□ Garage
# of Cars
□ Attached
Car Storage/Type
□ Detached
□ Built-in
□ Carport
Year Built
Lot Size
Appx. Gross Living Area
Sq. Ft
Above Grade Room Count
Tot
Brms.
Baths
Tot.
Basement
□ Partial
□ SLAB
□ Full
□ Crawl Space
WALK-OUT
Basement Finish
Attic (Check all that apply)
Attic Access
□ Walkup
□ Hatch
□ Pull down steps
Bonus Room
□ Barn
Detached Structures
□ Guest House
□ Studio
□ Pool House
□ Shed
Deck/Patio
Pool/Spa
Fireplace(s)
□ Public
□ Private
Water Supply
□ Community
□ Well
□ Septic
□ Sewer
Waste Disposal
□ Cesspool
Type of Air Conditioning
□ Central
□ Window/Wall
□ Heat Pump
□ Gas
□ Propane
□ Electric
Type of Heating System
□ Radiant
□ Oil
□ Wood stove
□ Solar
□ Base Board
□ Coal
□ Heat pump
□ Radiator
Location
□ Superior
□ Similar
□ Inferior
Lot Characteristics
View
Floor Plan Utility
Ext. Condition’s Appeal
Int. Condition’s Appeal
Overall Rating of Listings as
Compared to Subject
Listing #1: Date inspected:
Listing #2: Date inspected:
Listing #3: Date inspected:
Page 4 of 6
Instructions: Select sales within the last six months which are suitable and similar to the subject property and within the same/similar market area.
COMPARABLE SALES
Comparable Sale #1
Comparable Sale #2
Comparable Sale #3
MLS #
Final List Price
Sales Price
Under Contract Date
Closing Date
□Partial
Full
□ Window/Wall □ Heat Pump
Overall Rating of Sales as
Sales #1: Inspected? □ Yes
□ No Comments:
Sales #2: Inspected?
□Yes
Sales #3: Inspected?
Page 5 of 6
MOST LIKELY
BUYER(S)
MARKETING STRATEGY
VALUE
ANALYSIS
SIGNATURES
Check all that apply:
□ Local Buyer
□ Transferee
□ International Buyer
□ First-time Homebuyer
□ Second-home Buyer
□ Empty Nester
□ Military
□ Parent Purchaser for Child
□ Move-up Homebuyer
□ Investor
□ Dual-income
What are the three - five challenges to getting this property sold?
1.
2.
3.
4.
5.
What are the three - five actions necessary to address the challenges identified above?
What are the top five creative ideas you will use in marketing this property keeping in mind the challenges and actions identified above?
Additional Comments:
Most Likely Sales Price (MLSP): $
Suggested List Price (SLP): $
The MLSP is based on “as is” condition and a marketing time not to exceed
days to a contract of sale.
Real Estate Firm Tax ID #:
Date of Inspection:
Agent Preparer Name:
Contact Signature:
Agent Preparer Signature:
Page 6 of 6