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The Worldwide ERC® Broker's Market Analysis and Strategy Report is an essential tool for real estate brokers. It guides them in conducting a comprehensive evaluation of a property’s condition, comparing it with similar properties, and determining its most likely sales price based on its current state and market conditions. This report, however, is distinct from a home inspection or an appraisal and should not be used as such. Those wishing to gain a detailed understanding of a property's potential in the market should consider filling out this form.

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Table of Contents

In the realm of real estate, the Worldwide ERC® Broker’s Market Analysis and Strategy Report stands as a pivotal tool for brokers, offering a comprehensive framework to assess properties not merely in terms of their present condition but also against a broader competitive and marketable spectrum. This detailed analysis goes beyond the superficial inspection to drill into the heart of what makes a property sell, focusing on an estimation of the Most Likely Sales Price under current market conditions. Highlighting its distinctive approach, the report clarifies its position as distinct from formal appraisals by not adhering to the Uniform Standards of Professional Appraisal Practice, defining its utility in the nuanced space between a general market overview and a detailed appraisal. Importantly, the form necessitates a keen awareness of state-specific disclosure requirements, ensuring relevancy and compliance in its application. Through procedural guidelines encompassing direct interactions with homeowners, rigorous property inspections, and strategic marketing propositions, the form encapsulates a holistic view of transitioning a property from listing to sale, including but not limited to, considering the repairs, improvements, and even the financing implications that could affect the sale. In essence, this report embodies a meticulous blueprint for navigating the complexities of the real estate market, delivering insights into not only the property itself but the myriad factors influencing its potential for sale, underpinned by a keen sensitivity to the time-sensitive nature of real estate transactions.

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Worldwide ERC® Broker’s Market Analysis and Strategy Report

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

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

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

INFORMATION

File #:

Homeowner(s):

Property Address:

Home Phone #:

City, State, Zip:

Work Phone #:

BMA Requested by (Co. & Contact):

e-mail:

Requesting Co. Address:

Phone #:

City, State, Zip:

Fax #:

ASSIGNMENT

Real Estate Firm:

Contact Name:

e-mail:

Real Estate Firm Address:

Phone #:

City, State, Zip:

Fax #:

Agent Preparer:

Phone #:

Homeowner’s purchase price: $

Date purchased:

INFORMATION

Improvements made by homeowner if any:

Is the subject currently listed?

□ Yes

□ No

Listing Company/Agent:

Form of Ownership:

□ Fee Simple

□ Leasehold

Occupant:

□ Homeowner

□ Tenant

□ Vacant

Type: □ Condo

Coop

PUD

Single Family

Mixed Use

Town House

Modular

Mobile Home

SUBJECT

□ Other:

Indicate any personal property that remains (e.g., refrigerator, range, etc):

Subject’s location type:

□ Urban

□ Suburban

□ Distant suburban

□ Rural

□ Farm

□ Resort

Lot Characteristics: positive/negative (explain):

Subject’s view: positive/negative (explain):

Locational issues OF WHICH you are aware that may affect the insurability of the property:

LOCATION	Site Characteristics of which you are aware (check all that apply):
	□ Private Street Access	□ Private Street Maintenance	□ Gated	□ Alley
	□ Easements/Encroachments	□ Sidewalk	□ Curbs/Gutters	□ Street Lighting
SUBJECT	□ Paved Street Surface	□ Paved Driveway Surface
	Miscellaneous of which you are aware (check all that apply):
	□ Maintenance issues with neighboring properties		□ Excess acreage or land	□ Mobile homes/trailer park nearby
	□ Subject located on or near designated environmental sites		□ Location next to agricultural area	□ Close proximity to hospital/firehouse, etc.
	□ Neighborhood has restrictive covenants		□ Subject located near railroad tracks	□ Audible street or highway noise present
	□ Located on or backs up to busy/main street		□ Location in flood plain	□ Location in earthquake zone
	□ Location next to school or public park		□ Property located on corner lot	□ Access to subject property
	□ Location near/in view of power lines/water towers/ radio towers		□ Location next to industrial area	□ Located on airport flight path
	□ Additional Comments:

Check all other items of which you are aware that may affect the marketability or value of the subject property and comment below:

	□ Style of home not typical for the area	□ Subject is over improved	□ Subject is under improved
MISCELLANEOUS	□ Inadequate parking	□ Functional obsolescence	□ Steep driveway
	□ Proposed land use change	□ Little sales activity in area or price range	□ Estimated time to sell is more than 120 days
	□ Proposed or pending assessments	□ Property taxes not typical for area	□ HOA has first right of refusal
	□ HOA does not allow “for sale” signs on property	□ HOA fees not typical for the area	□ Other
	Comments:

Rev. 01/07/2009

This Form Expires 12/31/2009

Page 1 of 6

SUBJECT CONDITION

INSPECTIONS/DISCLOSURES

Property Condition

For all the following of which you are aware or observe in viewing the property, check the appropriate box(es) and describe:

□Décor of home is personalized or dated:

□Incomplete construction:

□Evidence of past or present water damage:

□Cracks or stains on walls, floors, or ceilings:

□Oil tank (abandoned):

□Oil tank (in use):

□Underground storage tank (abandoned):

□Underground storage tank (in use):

□Synthetic stucco:

□Suspected structural problems:

□Evidence of odor:

□Evidence of pet damage:

□Evidence of deferred maintenance: Additional Comments:

Recommended Repairs and Improvements
Interior Items			R&I Estimates
□ Paint	Estimated cost per item: $		Comment:
□ Flooring	Estimated cost per item: $		Comment:
□ Wall paper removal	Estimated cost per item: $		Comment:
□ Appliances	Estimated cost per item: $		Comment:
□ Cabinets	Estimated cost per item: $		Comment:
□ Light fixtures	Estimated cost per item: $		Comment:
□ Countertops	Estimated cost per item: $		Comment:
□ Bathroom fixtures	Estimated cost per item: $		Comment:
□ Other:	Estimated cost per item: $		Comment:
□ Other:	Estimated cost per item: $		Comment:
□ Other:	Estimated cost per item: $		Comment:
Total Estimated Cost for Interior Repairs		$

Exterior Items			R&I Estimates
□ Landscaping	Estimated cost per item: $		Comment:
□ Paint	Estimated cost per item: $		Comment:
□ Driveway/walkway	Estimated cost per item: $		Comment:
□ Porch/deck	Estimated cost per item: $		Comment:
□ Pool	Estimated cost per item: $		Comment:
□ Spa	Estimated cost per item :$		Comment:
□ Gutters	Estimated cost per item: $		Comment:
□ Siding	Estimated cost per item: $		Comment:
□ Trim	Estimated cost per item: $		Comment:
□ Roof	Estimated cost per item: $		Comment:
□ Detached structures	Estimated cost per item: $		Comment:
□ Debris removal	Estimated cost per item: $		Comment:
□ Windows and screens	Estimated cost per item: $		Comment:
□ Other:	Estimated cost per item: $		Comment:
□ Other:	Estimated cost per item: $		Comment:
□ Other:	Estimated cost per item: $		Comment:
Total Estimated Cost for Exterior RepairS		$

List all required, customary and additionally recommended inspections (e.g., municipal, certificate of occupancy, environmental, etc.): Required:

Customary:

Additionally recommended for the subject property:

Subject property issues OF WHICH you are aware that may affect insurability of the subject property:

List all required disclosures:

Rev. 01/07/2009

This Form Expires 12/31/2009

Page 2 of 6

Identify the most probable means of financing for the subject:

□ FHA

□ VA

□ Cash

□ Conventional mortgage—conforming or jumbo

□ Other:

Describe the terms of the financing type identified above:

Identify and describe any financing concessions that may be necessary to secure the sale of the subject property.

□ Points:

□ Closing Costs:

□ Other:

FINANCING

Do you anticipate any issues that may affect the ability to secure financing for the subject property (e.g., condition, zoning, environmental, HOA, etc.)?

□ Yes □ No

If yes, comment:

If the subject property is a common interest development (e.g., condo, townhouse, PUD), what is the ratio of owners to investors?

□ N/A

Owners:

Investors:

(total MUST equal 100%)

HOA Fees: $

How often are they paid?

□ Monthly

□ Quarterly

□ Semi-annually

□ Annually

Items included in HOA Fees: □ Trash Pick-up

□ Landscaping

□ Snow Removal

□ Exterior Building Maintenance

□ Security/Concierge Services

□ Insurance

□ Taxes

□ Amenities

□ Common Area Maintenance

WATER

SEWER

□ Other:

Are you aware of any special assessments covered by the HOA?

□ Yes

□ No

If yes, indicate the amount of assessment: $

Describe what the special assessment covers:

Subject Neighborhood (For purposes of this report, the subject neighborhood is defined by the preparer of this form. Identify what you regard as the

subject neighborhood and then use statistics that you have gathered which reflect that market area. Note: the neighborhood might be a MLS area, a

particular section of a town, a specific subdivision, or an entire community. This is described as the “micro area.”)

Subject neighborhood is defined as:

Price Range: $

to $

Property Values are: □ Increasing

% in past

months

□ Stable

Average Days-on-Market (list to contract)

days

□ Decreasing

(# of days)

% in past

months

Calculate the months supply of inventory (Absorption Rate):

Type of competing listings

New Homes

Resale

Number of active listings ÷

Avg. number of sales per month

Number of months needed

REO/Foreclosure

for the last 6 months

to sell existing inventory

Corporate

Total (MUST equal 100%)

100%

Describe all marketing concessions/incentives being offered to buyers and/or brokers on competing properties:

CONDITIONS

Recommend any marketing concessions/incentives that should be offered for the subject:

MARKET

Describe major corporation(s) in this neighborhood that are moving into, out of, or planning layoffs:

Describe current economic conditions (positive or negative) that may have an Effect on the marketability of the property:

Broader Market Area (For purposes of this report, the broader market area is defined as that area beyond the subject neighborhood in which buyers will

look for comparable properties. This is described as the “macro area.” In some instances, the broader market area will be the same as the subject’s

neighborhood. If this is the case, indicate it below.)

What do you consider the “broader market area” to be for this property?

Are there any specific issues in the broader market area which are not reflected in the specific neighborhood that might affect the sale of the subject property? Consider types of competing homes (e.g., new construction, REO’s); incentives or concessions that are occurring; economic conditions; a dramatically different price range than the subject; days on market; etc.

Rev. 01/07/2009

This Form Expire 12/31/2009

Page 3 of 6

COMPETING LISTINGS

ITEM

SUBJECT

Competing Listing #1

Competing Listing #2

Competing Listing #3

Address, City

Current MLS #

Proximity to Subject

Original List Price

Current List Price

Seller Concessions

Last Price Change Date

Days-on-market (DOM)

from original list date

Previous listing history for last

Orig. List Price $

Last List Price $

Last List Price

12 months

DOM:

Style

□ Brick

□ Wood

□ Brick

□ Wood

□ Brick

□ Wood

□ Brick

□ Wood

□ Composite

□ Stone

□ Composite

□ Stone

□ Composite

□ Stone

□ Composite

□ Stone

Exterior Finish

□ Aluminum

□ Stucco

□ Aluminum

□ Stucco

□ Aluminum

□ Stucco

□ Aluminum

□ Stucco

(Check all that apply)

□ Synthetic Stucco

□ Vinyl

□ Synthetic Stucco

□ Vinyl

□ Synthetic Stucco

□ Vinyl

□ Synthetic Stucco

□ Vinyl

□ Hardcoat Stucco

□ Other:

□ Composite

□ Slate

□ Composite

□ Slate

□ Composite

□ Slate

□ Composite

□ Slate

Roof Type

□ Tar

□ Tile

□ Tar

□ Tile

□ Tar

□ Tile

□ Tar

□ Tile

□ Wood shake

□ Tin

□ Wood shake

□ Tin

□ Wood shake

□ Tin

□ Wood shake

□ Tin

(Check all that apply)

□ Asphalt shingle

□ Copper

□ Asphalt shingle

□ Copper

□ Asphalt shingle

□ Copper

□ Asphalt shingle

□ Copper

□ Other:

□ None

□ Garage

# of Cars

□ Garage

# of Cars

□ Garage

# of Cars

□ Garage

# of Cars

□ Attached

Car Storage/Type

□ Detached

□ Built-in

(Check all that apply)

□ Carport

□ Attached

□ Detached

□ Other:

□ Built-in

□ Other:

□ Built-in

□ Other:

□ Built-in

□ Other:

□ Built-in

Year Built

Lot Size

Appx. Gross Living Area

Sq. Ft

Above Grade Room Count

Tot

Brms.

Baths

Tot.

Brms.

Baths

Tot.

Brms.

Baths

Tot.

Brms.

Baths

Basement

□ None

□ Partial

□ None

□ Partial

□ None

□ Partial

□ None

□ Partial

□ SLAB

□ Full

□ SLAB

□ Full

□ SLAB

□ Full

□ SLAB

□ Full

(Check all that apply)

□ Crawl Space

WALK-OUT

□ Crawl Space

WALK-OUT

□ Crawl Space

WALK-OUT

□ Crawl Space

WALK-OUT

Basement Finish

□ None

□ Partial

□ None

□ Partial

□ None

□ Partial

□ None

□ Partial

Attic (Check all that apply)

□ Crawl Space

□ Full

□ Crawl Space

□ Full

□ Crawl Space

□ Full

□ Crawl Space

□ Full

Attic Access

□ Walkup

□ Hatch

□ Walkup

□ Hatch

□ Walkup

□ Hatch

□ Walkup

□ Hatch

□ Pull down steps

Bonus Room

□ None

□ Barn

□ None

□ Barn

□ None

□ Barn

□ None

□ Barn

Detached Structures

□ Guest House

□ Studio

□ Guest House

□ Studio

□ Guest House

□ Studio

□ Guest House

□ Studio

(Check all that apply)

□ Pool House

□ Shed

□ Pool House

□ Shed

□ Pool House

□ Shed

□ Pool House

□ Shed

□ Other:

Deck/Patio

Pool/Spa

Fireplace(s)

□ Public

□ Private

□ Public

□ Private

□ Public

□ Private

□ Public

□ Private

Water Supply

□ Community

□ Well

□ Community

□ Well

□ Community

□ Well

□ Community

□ Well

□ Septic

□ Sewer

□ Septic

□ Sewer

□ Septic

□ Sewer

□ Septic

□ Sewer

Waste Disposal

□ Cesspool

□ Other:

Type of Air Conditioning

□ None

□ Central

□ None

□ Central

□ None

□ Central

□ None

□ Central

□ Window/Wall

□ Heat Pump

□ Window/Wall

□ Heat Pump

□ Window/Wall

□ Heat Pump

□ Window/Wall

□ Heat Pump

(Check all that apply)

□ Other:

□ None

□ Gas

□ None

□ Gas

□ None

□ Gas

□ None

□ Gas

□ Propane

□ Electric

□ Propane

□ Electric

□ Propane

□ Electric

□ Propane

□ Electric

Type of Heating System

□ Radiant

□ Oil

□ Radiant

□ Oil

□ Radiant

□ Oil

□ Radiant

□ Oil

□ Wood stove

□ Solar

□ Wood stove

□ Solar

□ Wood stove

□ Solar

□ Wood stove

□ Solar

(Check all that apply)

□ Base Board

□ Coal

□ Base Board

□ Coal

□ Base Board

□ Coal

□ Base Board

□ Coal

□ Heat pump

□ Radiator

□ Heat pump

□ Radiator

□ Heat pump

□ Radiator

□ Heat pump

□ Radiator

□ Other:

Location

□ Superior

□ Similar

□ Inferior

□ Superior

□ Similar

□ Inferior

□ Superior

□ Similar

□ Inferior

Lot Characteristics

□ Superior

□ Similar

□ Inferior

□ Superior

□ Similar

□ Inferior

□ Superior

□ Similar

□ Inferior

View

□ Superior

□ Similar

□ Inferior

□ Superior

□ Similar

□ Inferior

□ Superior

□ Similar

□ Inferior

Floor Plan Utility

□ Superior

□ Similar

□ Inferior

□ Superior

□ Similar

□ Inferior

□ Superior

□ Similar

□ Inferior

Ext. Condition’s Appeal

□ Superior

□ Similar

□ Inferior

□ Superior

□ Similar

□ Inferior

□ Superior

□ Similar

□ Inferior

Int. Condition’s Appeal

□ Superior

□ Similar

□ Inferior

□ Superior

□ Similar

□ Inferior

□ Superior

□ Similar

□ Inferior

Overall Rating of Listings as

□ Superior

□ Similar

□ Inferior

□ Superior

□ Similar

□ Inferior

□ Superior

□ Similar

□ Inferior

Compared to Subject

Listing #1: Date inspected:

Comments:

Listing #2: Date inspected:

Comments:

Listing #3: Date inspected:

Comments:

Rev. 01/07/2009

This Form Expires 12/31/2009

Page 4 of 6

Instructions: Select sales within the last six months which are suitable and similar to the subject property and within the same/similar market area.

COMPARABLE SALES

ITEM

SUBJECT

Comparable Sale #1

Comparable Sale #2

Comparable Sale #3

Address, City

MLS #

Proximity to Subject

Original List Price

Final List Price

Sales Price

Seller Concessions

Under Contract Date

Closing Date

Days-on-market (DOM)

from original list date

Previous listing history for last

Orig. List Price $

Last List Price $

12 months

DOM:

Style

□ Brick

□ Wood

□ Brick

□ Wood

□ Brick

□ Wood

□ Brick

□ Wood

□ Composite

□ Stone

□ Composite

□ Stone

□ Composite

□ Stone

□ Composite

□ Stone

Exterior Finish

□ Aluminum

□ Stucco

□ Aluminum

□ Stucco

□ Aluminum

□ Stucco

□ Aluminum

□ Stucco

(Check all that apply)

□ Synthetic Stucco

□ Vinyl

□ Synthetic Stucco

□ Vinyl

□ Synthetic Stucco

□ Vinyl

□ Synthetic Stucco

□ Vinyl

□ Hardcoat Stucco

□ Other:

□ Composite

□ Slate

□ Composite

□ Slate

□ Composite

□ Slate

□ Composite

□ Slate

Roof Type

□ Tar

□ Tile

□ Tar

□ Tile

□ Tar

□ Tile

□ Tar

□ Tile

□ Wood shake

□ Tin

□ Wood shake

□ Tin

□ Wood shake

□ Tin

□ Wood shake

□ Tin

(Check all that apply)

□ Asphalt shingle

□ Copper

□ Asphalt shingle

□ Copper

□ Asphalt shingle

□ Copper

□ Asphalt shingle

□ Copper

□ Other:

□ None

□ Garage

# of Cars

□ Garage

# of Cars

□ Garage

# of Cars

□ Garage

# of Cars

□ Attached

Car Storage/Type

□ Detached

□ Built-in

(Check all that apply)

□ Carport

□ Attached

□ Detached

□ Other:

□ Built-in

□ Other:

□ Built-in

□ Other:

□ Built-in

□ Other:

□ Built-in

Year Built

Lot Size

Appx. Gross Living Area

Sq. Ft

Above Grade Room Count

Tot.

Brms.

Baths

Tot.

Brms.

Baths

Tot.

Brms.

Baths

Tot.

Brms.

Baths

Basement

□ None

□ Partial

□ None

□ Partial

□ None

□Partial

□ None

□ Partial

□ SLAB

□ Full

□ SLAB

□ Full

□ SLAB

Full

□ SLAB

□ Full

(Check all that apply)

□ Crawl Space

WALK-OUT

□ Crawl Space

WALK-OUT

□ Crawl Space

WALK-OUT

□ Crawl Space

WALK-OUT

Basement Finish

□ Full

□ Partial

□ Full

□ Partial

□ Full

□ Partial

□ Full

□ Partial

Attic (Check all that apply)

□ Crawl Space

□ None

□ Crawl Space

□ None

□ Crawl Space

□ None

□ Crawl Space

□ None

Attic Access

□ Walkup

□ Hatch

□ Walkup

□ Hatch

□ Walkup

□ Hatch

□ Walkup

□ Hatch

□ Pull down steps

Bonus Room

□ None

□ Barn

□ None

□ Barn

□ None

□ Barn

□ None

□ Barn

Detached Structures

□ Guest House

□ Studio

□ Guest House

□ Studio

□ Guest House

□ Studio

□ Guest House

□ Studio

(Check all that apply)

□ Pool House

□ Shed

□ Pool House

□ Shed

□ Pool House

□ Shed

□ Pool House

□ Shed

□ Other:

Deck/Patio

Pool/Spa

Fireplace(s)

Water Supply

□ Public

□ Private

□ Public

□ Private

□ Public

□ Private

□ Public

□ Private

□ Community

□ Well

□ Community

□ Well

□ Community

□ Well

□ Community

□ Well

□ Septic

□ Sewer

□ Septic

□ Sewer

□ Septic

□ Sewer

□ Septic

□ Sewer

Waste Disposal

□ Cesspool

□ Other:

Type of Air Conditioning

□ None

□ Central

□ None

□ Central

□ None

□ Central

□ None

□ Central

□ Window/Wall

□ Heat Pump

□ Window/Wall □ Heat Pump

(Check all that apply)

□ Other:

□ None

□ Gas

□ None

□ Gas

□ None

□ Gas

□ None

□ Gas

□ Propane

□ Electric

□ Propane

□ Electric

□ Propane

□ Electric

□ Propane

□ Electric

Type of Heating System

□ Radiant

□ Oil

□ Radiant

□ Oil

□ Radiant

□ Oil

□ Radiant

□ Oil

□ Wood stove

□ Solar

□ Wood stove

□ Solar

□ Wood stove

□ Solar

□ Wood stove

□ Solar

(Check all that apply)

□ Base Board

□ Coal

□ Base Board

□ Coal

□ Base Board

□ Coal

□ Base Board

□ Coal

□ Heat pump

□ Radiator

□ Heat pump

□ Radiator

□ Heat pump

□ Radiator

□ Heat pump

□ Radiator

□ Other:

Location

□ Superior

□ Similar

□ Inferior

□ Superior

□ Similar

□ Inferior

□ Superior

□ Similar

□ Inferior

Lot Characteristics

□ Superior

□ Similar

□ Inferior

□ Superior

□ Similar

□ Inferior

□ Superior

□ Similar

□ Inferior

View

□ Superior

□ Similar

□ Inferior

□ Superior

□ Similar

□ Inferior

□ Superior

□ Similar

□ Inferior

Floor Plan Utility

□ Superior

□ Similar

□ Inferior

□ Superior

□ Similar

□ Inferior

□ Superior

□ Similar

□ Inferior

Ext. Condition’s Appeal

□ Superior

□ Similar

□ Inferior

□ Superior

□ Similar

□ Inferior

□ Superior

□ Similar

□ Inferior

Int. Condition’s Appeal

□ Superior

□ Similar

□ Inferior

□ Superior

□ Similar

□ Inferior

□ Superior

□ Similar

□ Inferior

Overall Rating of Sales as

□ Superior

□ Similar

□ Inferior

□ Superior

□ Similar

□ Inferior

□ Superior

□ Similar

□ Inferior

Compared to Subject

Sales #1: Inspected? □ Yes

□ No Comments:

Sales #2: Inspected?

□Yes

□ No Comments:

Sales #3: Inspected?

□Yes

□ No Comments:

Rev. 01/07/2009

This Form Expires 12/31/2009

Page 5 of 6

MOST LIKELY	BUYER(S)
MARKETING STRATEGY
VALUE	ANALYSIS
SIGNATURES

Check all that apply:
□ Local Buyer	□ Transferee	□ International Buyer	□ First-time Homebuyer	□ Second-home Buyer
□ Empty Nester	□ Military	□ Parent Purchaser for Child	□ Move-up Homebuyer	□ Investor
□ Dual-income	□ Other:

What are the three - five challenges to getting this property sold?

What are the three - five actions necessary to address the challenges identified above?

What are the top five creative ideas you will use in marketing this property keeping in mind the challenges and actions identified above?

Additional Comments:

Most Likely Sales Price (MLSP): $	Suggested List Price (SLP): $
The MLSP is based on “as is” condition and a marketing time not to exceed		days to a contract of sale.
	(# of days)

File #:	Real Estate Firm:

Real Estate Firm Tax ID #:	Date of Inspection:

Contact Name:	Agent Preparer Name:

Contact Signature:	Agent Preparer Signature:

Rev. 01/07/2009

This Form Expires 12/31/2009

Page 6 of 6

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Form Breakdown

Fact Name	Description
Purpose of the Report	Enables real estate brokers to assess a property's condition, competition, and marketability to estimate its Most Likely Sales Price (MLSP).
Not an Appraisal	This comparative market analysis is not performed in accordance with the Uniform Standards of Professional Appraisal Practice and cannot serve as an appraisal.
State-specific Disclosure	Preparers are required to be aware of and include any state-specific disclosure requirements in the form as necessary.
Procedural Guidelines	Guidelines include contacting homeowner, inspecting the property, submitting the report, and providing photos according to the requesting company's protocols.
Condition Basis	The MLSP is based on the property's "as is" condition and assumes a marketing time of up to 120 days to a contract of sale or as directed by the client.
Assignment Details	Includes information on the real estate firm, contact name, and agent preparer among others for assignment clarity.
Property Information	Covers a comprehensive set of details including improvements made by homeowner, listing status, type and form of ownership, and more.
Location and Site Characteristics	Assessment of site characteristics and any locational issues that may affect insurability or value of the property, including proximity to environmental sites or designated zones.
Condition Inspections and Disclosures	List of items to check regarding the property's condition, recommended repairs, and improvements with estimated costs, plus required disclosures.
Market Analysis Components	Includes neighborhood definition, price range, property values trend, economic conditions, competing listings, and comparable sales analysis.

Guidelines on Filling in Erc Broker Market Analysis

Filling out the ERC Broker Market Analysis form is an essential step for brokers who are tasked with conducting a thorough analysis of a property's condition, competition, and future marketability. This form helps in estimating the property’s Most Likely Sales Price (MLSP), considering its current state and expected time on the market. Below are step-by-step instructions to guide through each section of the form efficiently.

Begin with the Information section. Enter the File Number, Homeowner(s) details, Property Address, Home and Work Phone Numbers, and the details of the entity that requested the BMA including their e-mail, address, and contact numbers.
In the Assignment section, input the Real Estate Firm's name, Contact Name, e-mail, Address, and Phone Numbers. Also, include the Agent Preparer’s contact information, the homeowner’s purchase price, and the date of purchase.
Under Improvements, list any upgrades or renovations made by the homeowner. Indicate whether the property is currently listed, and if so, provide the listing company/agent and the form of ownership.
Specify the Type of property (e.g., Single Family, Condo, etc.), including personal property that remains, subject’s location type, lot characteristics, subject’s view, and any locational issues affecting the property’s insurability.
In the Location section, check all applicable site and miscellaneous characteristics, making any relevant comments in the space provided.
Address the Subject Condition Inspections/Disclosures by checking appropriate boxes regarding property condition and recommending repairs or improvements. List any required, customary, or recommended inspections and required disclosures.
Fill out the Financing section by identifying the most probable means of financing for the subject property, any financing concessions, and anticipate any issues that may affect securing financing.
Describe the Subject Neighborhood including its definition, price range, property values trend, average days-on-market, and absorption rate. Elaborate on types of competing listings and any marketing concessions/incentives being offered.
For the Broader Market Area, define what you consider to be the area for this property, detailing any specific issues that might affect the sale of the subject property.
In the Competing Listings section, compare the subject property with up to three competing listings. Include all necessary details such as address, MLS number, proximity to subject, pricing history, and home characteristics.
Finally, select sales within the last six months that are comparable to the subject property in the Comparable Sales section. Provide detailed information about each sale, including the address, MLS number, sale price, and home features.

Upon completion of the ERC Broker Market Analysis form, review all the information for accuracy. Remember to attach any required photographs or additional documents. Submitting this comprehensive analysis will help in determining the property's Most Likely Sales Price, ensuring that all considerations regarding the property's condition and marketability are thoroughly documented.

Learn More on Erc Broker Market Analysis

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

The Worldwide ERC® Broker’s Market Analysis and Strategy Report is crafted to guide real estate brokers in conducting a thorough examination of a property's condition, its competition, and future marketability. This vigilant analysis is designed to provide an estimate of the property’s Most Likely Sales Price (MLSP). It is important to note that this report is neither a home inspection nor an appraisal. The comparative market analysis performed through this report does not align with the Uniform Standards of Professional Appraisal Practice and should not be utilized as an appraisal for any purpose. Moreover, brokers preparing this form are advised to include any state-specific disclosure requirements as deemed necessary.

How should the Most Likely Sales Price (MLSP) be determined according to this form?

The determination of the Most Likely Sales Price (MLSP) requires considering the property "as is" and assumes a marketing timeframe that does not surpass 120 days until a contract of sale is achieved, or as directed by the client. This approach emphasizes providing a realistic and achievable sales price estimate based on the property's current state and market conditions within the specified marketing period.

What procedural guidelines should be followed when completing this report?

When completing the Worldwide ERC® Broker’s Market Analysis and Strategy Report, several procedural guidelines are recommended:

Contact the homeowner as prescribed by the requesting company’s guidelines to gather essential information about the property.
Conduct a detailed inspection of the property, noting its condition, any improvements made by the homeowner, and other relevant details that impact its marketability and value.
Submit the completed report alongside the necessary photographs that provide a visual representation of the property’s condition and its features.

These guidelines aim to ensure a comprehensive analysis that accurately captures the property's marketability and potential sales price.

Are there specific disclosures required when preparing this report?

Yes, when preparing the Worldwide ERC® Broker’s Market Analysis and Strategy Report, it's crucial to include any state-specific disclosure requirements. These disclosures can vary widely depending on the location of the property and may pertain to aspects such as known defects, lead-based paint, natural hazards, or other material facts that could affect the property's value or desirability. The inclusion of these disclosures ensures transparency and compliance with legal standards, helping to protect all parties involved in the potential sale of the property.

What kind of information is required about the subject property’s neighborhood and competing listings?

Understanding the subject property’s neighborhood and its competing listings is vital for providing an accurate analysis. Information required about the subject neighborhood includes:

Defining the subject neighborhood: This could be based on multiple factors such as an MLS area, a specific subdivision, or a broader community.
Market statistics such as price range, property values trends, average days-on-market, and inventory absorption rate.
Economic conditions and the presence of major corporations that may influence the marketability of the property.

For competing listings, details include but are not limited to:

Comparing listing prices, styles of homes, exterior and interior condition, lot size, and any additional features that directly compete with the subject property.
Analysis of previous listing history, days on market, and any seller concessions.

This comprehensive gathering and comparison of data enable a robust strategy to estimate the subject property’s market position accurately.

Common mistakes

Filling out the ERC Broker Market Analysis form requires attention to detail and a comprehensive understanding of the subject property's market. Here are six common mistakes to avoid to ensure accurate and useful analysis:

Overlooking state-specific disclosure requirements: Each state has unique disclosure laws that must be adhered to. Failing to include these in the report can lead to inaccuracies and potential legal issues.
Incorrectly estimating the Most Likely Sales Price (MLSP): The MLSP must consider the current condition of the property and realistic market conditions. Over or underestimating this figure can mislead homeowners and potential buyers.
Not thoroughly inspecting the property: While this form is not a substitute for a home inspection, a diligent visual inspection is crucial. Ignoring or missing visible issues can result in an inaccurate analysis.
Omitting necessary repairs and improvements: The form provides space for listing recommended repairs and improvements along with their estimated costs. Overlooking this section can affect the property’s marketability and MLSP.
Inaccurate comparison with competing listings: Properly identifying and comparing competing listings is essential for a realistic analysis. Incorrectly selecting comparables or misinterpreting their details can skew the MLSP.
Neglecting neighborhood and broader market area conditions: The form requires an assessment of both the subject neighborhood and the broader market area. Failure to accurately report on these can lead to a misunderstanding of the property's market position.

By avoiding these mistakes and approaching the ERC Broker Market Analysis form with due diligence, brokers can provide valuable insights into the property's condition, competition, and future marketability.

Documents used along the form

When dealing with real estate transactions and analyses, the Worldwide ERC® Broker's Market Analysis and Strategy Report is a comprehensive tool used by real estate brokers to assess a property's market value, condition, and competitive position in the market. However, to complete a thorough examination or transaction, additional documents and forms often come into play. Understanding these documents can provide a clearer picture of the property's overarching status and potential issues it may face in the market.

Listing Agreement: This document is a contract between a property owner and a real estate broker, authorizing the broker to represent the seller and their property to third parties. It defines the scope of the broker's authority, including what they can do concerning the property and the compensation the broker will receive.
Residential Disclosure Form: Depending on the state, sellers might need to complete this form, which discloses specific details about the property's condition, including any known defects or malfunctions in the home's systems and structural integrity.
Home Inspection Report: This report is prepared after a professional examination of the property's condition. It covers various aspects such as the electrical system, plumbing, roofing, insulation, as well as potential environmental hazards. It can significantly impact negotiations between buyers and sellers.
Title Report: This document provides a comprehensive history of the property, including ownership, encumbrances, liens, and any easements or restrictions. It's crucial for ensuring the property can be legally transferred.
Appraisal Report: Different from the Broker's Market Analysis, an appraisal report is prepared by a certified appraiser and provides an opinion of value based on comparable sales and an analysis of the property’s condition.
Purchase Agreement: This is a legally binding contract between the buyer and seller outlining the terms of the property sale, including price, closing conditions, and any contingencies that must be met before the sale is finalized. It is the culmination of negotiations and understanding between both parties.

Each of these documents plays a specific role in the real estate transaction process, ensuring transparency, fairness, and legality in dealings between buyers, sellers, and agents. They complement the insights provided by the Worldwide ERC® Broker's Market Analysis and Strategy Report and are crucial for any transaction to proceed smoothly and efficiently. Understanding the purpose and content of these documents can help parties involved in real estate transactions make informed decisions.

Similar forms

The Comparative Market Analysis (CMA) Report: Like the Worldwide ERC® Broker's Market Analysis and Strategy Report, the CMA provides an estimation of a property's value based on similar, recently sold properties in the same area. Both documents help sellers understand the market value of their property without conducting an official appraisal.
The Home Inspection Report: Although the ERC form specifies that it is not a home inspection report, both documents address the condition of the subject property. The Home Inspection Report focuses on the physical condition and systems of a property, while the ERC form includes observations related to property condition for marketability purposes.
The Listing Agreement: This agreement between a homeowner and a real estate agent authorizes the agent to act on behalf of the homeowner in selling the property. Similar to the ERC form, it contains information about the property and homeowner but focuses on the terms of the sale and agent compensation, rather than market analysis.
The Seller's Disclosure Statement: This document requires sellers to disclose known issues with the property. While the ERC Broker's Market Analysis includes sections where known issues affecting insurability and marketability must be indicated, both documents ensure transparency regarding the condition of the property.
The Real Estate Appraisal Report: An appraisal report provides an objective, detailed analysis of a property's value, based on comparable sales, an inspection of the property, and the appraiser's knowledge. The ERC form, while not an appraisal, similarly uses data on comparable sales and an inspection of the property to determine its likely sale price, but it does it for the purpose of market analysis rather than securing financing.

Dos and Don'ts

When you're filling out the Worldwide ERC® Broker’s Market Analysis and Strategy Report, it's crucial to approach it with accuracy and diligence. Here are some guidelines to help you navigate this important document:

Do give a thorough inspection of the property, noting all relevant characteristics and conditions.
Do accurately report the subject property’s condition, taking special note of any improvements made by the homeowner.
Do make sure to include any state-specific disclosure requirements as necessary.
Do ensure all information regarding the homeowner, property address, and contact details are filled out completely and accurately.
Do use recent and relevant comparables from the market to support your Most Likely Sales Price (MLSP) estimation.
Do include comprehensive details of competing listings and their impact on your market analysis.
Do consider the broader market area's conditions and how they affect the subject property's marketability and value.
Do accurately list and describe any known issues that may affect the insurability or value of the property.
Do account for all required and recommended repairs, including estimated costs.
Do include all necessary photographs as per the requesting company’s guidelines to provide a visual representation of the property.

Don’t overlook the importance of physically inspecting the property; relying solely on online resources or historical data can lead to inaccuracies.
Don’t underestimate the property's location and how it impacts marketability—this includes both positive and negative aspects.
Don’t forget to check all applicable boxes in the form related to the property's characteristics, condition, and location issues.
Don’t leave out any relevant information regarding improvements made by the homeowner, as this can significantly affect the property's value.
Don’t guess or make assumptions when unsure about certain details; it's better to research or verify information to ensure accuracy.
Don’t ignore market trends and recent sales data when determining the Most Likely Sales Price (MLSP).
Don’t fail to disclose known issues that may affect the property's insurability or future marketability.
Don’t omit details about the financing conditions that may be relevant to the sale of the property.
Don’t neglect mentioning any special assessments or HOA regulations that could impact the sale.
Don’t submit the report without reviewing it for completeness and accuracy to ensure it meets the client's requirements.

Misconceptions

Understanding the Worldwide ERC® Broker’s Market Analysis and Strategy Report can be challenging. Below are seven common misconceptions about this form, clarified to enhance comprehension and accuracy in its use.

It’s an appraisal: Many believe the Worldwide ERC® Broker’s Market Analysis (BMA) is an appraisal. However, it is not conducted in accordance with the Uniform Standards of Professional Appraisal Practice and should not be considered as an appraisal.
Home inspection substitute: Another misconception is that the BMA can replace a home inspection. This document focuses on market analysis and strategy rather than a detailed inspection of the property’s condition.
One-size-fits-all document: Some consider the BMA a standardized form without customization. In reality, it requires specific state disclosures and adjustments based on unique property characteristics, ensuring tailored accuracy.
Only for internal use: While primarily designed for real estate brokers and professionals, the insights from the BMA can benefit homeowners and buyers looking for a detailed market analysis of a specific property.
Limited to residential properties: Even though the BMA often addresses single-family homes, it is also applicable to various types of properties, including condos, co-ops, and PUDs, by analyzing their unique market positioning.
Solely considers current listings: The belief that the BMA only assesses current listings is incorrect. It involves a comprehensive comparison that includes both current and past listings, offering a more complete market overview.
Fixed 120-day marketing plan: Many misinterpret the BMA's reference to a "marketing time not to exceed 120 days" as a strict limit. This timeframe is a guideline based on the "as is" condition and subject to adjustment as directed by the client or market conditions.

Correcting these misconceptions ensures the Worldwide ERC® BMA form is used effectively, enabling real estate professionals to conduct a diligent and comprehensive market analysis.

Key takeaways

The Worldwide ERC® Broker's Market Analysis and Strategy Report is specifically designed to assist real estate brokers in carrying out a comprehensive analysis of a property's current condition, its competitive position within the market, and its future marketability. Here are key takeaways regarding completing and utilizing this form:

It's important to understand that this report is not a formal property inspection nor is it an appraisal. The comparative market analysis performed does not adhere to the Uniform Standards of Professional Appraisal Practice.
The form provides a structure for estimating the subject property's Most Likely Sales Price (MLSP) based on its current condition and assumes a marketing timeframe not exceeding 120 days to reach a sales contract, unless otherwise directed by the client.
Preparers must take into account any specific disclosure requirements mandated by state laws and incorporate such information into the form as necessary.
The report covers a wide array of factors including the subject property's improvements, current listing status, type and form of ownership, occupancy status, and more detailed elements such as location type, lot characteristics, and surrounding area specifics that might impact the property’s insurability and marketability.
Condition inspections and disclosures related to both the interior and exterior aspects of the property are critical components of the report. These sections facilitate a detailed account of the property's state, including decor, construction status, evidence of water damage or structural problems, amongst other criteria.
Within the form, there are sections devoted to recommended repairs and improvements along with estimated costs, providing valuable insights into potential investments necessary to enhance the property's appeal and value.
Financing considerations are addressed, identifying the most probable means of financing for the subject property. This includes outlining any financing concessions that may be necessary to facilitate the sale.
The analysis extends to the subject neighborhood and broader market area, including the identification of major corporations, economic conditions, competing listings, and sales within the same or similar market areas, offering a comparative perspective.
Finally, the importance of thoroughly completing every section of the form cannot be overstressed. Accurate and comprehensive data collection and analysis are key to leveraging the report for the estimation of the Most Likely Sales Price and for strategizing effectively to market the property.

Correct and diligent completion of the ERC® Broker's Market Analysis and Strategy Report enables brokers to provide valuable, informed advice to their clients regarding the sale of a property, aligning expectations with current market realities.

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