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The ERCThe ERC®® Broker’s Market Analysis Broker’s Market Analysis and Strategy Reportand Strategy Report

Coalition Corner:Business training tools for HR staff, real estate licensees and other service professionals in the relocation and real estate industries

© 2005, Employee Relocation Council/Worldwide ERC® Coalition

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Program Objectives

• This program supplements a monthly editorial feature in ERC®’s Mobility magazine

• This segment will:

– Examine the evolution, purpose and current uses of the ERC® Broker’s Market Analysis and Strategy Report (BMA) in the context of a managed move

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Introduction

• In a managed move (i.e., one initiated/sponsored by an employer and/or overseen by relocation management company [RMC]), formal assistance programs are typically offered to facilitate the move from location A to location B

• Employers and RMC representatives typically share information about multiple properties across many nationwide markets, creating a tremendous need for accurate and consistent information

• ERC®’s Broker Market Analysis and Strategy Report (BMA) was designed to help meet that need; and was drafted, field-tested and revised by individuals from all segments of the relocation industry, including:

– Corporations or employing organizations– Relocation Management Companies– Real Estate Brokers– Transferees

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Background Information

• BMA initially designed (in 1989) to be used in conjunction with the appraisal process during a traditional corporate homesale program (corporation or third party company bought transferee’s home to resell)

• As typical home-marketing and relocation assistance programs changed, form was updated in ’91 and ’96 to reflect two current, primary uses:

– Provide valuable information as part of the overall homesale assistance program

– Assist in devising home-marketing strategy

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Defining the BMA

• What the BMA is NOT:

– Not an appraisal

– Not a home inspection

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Defining the BMA

• What the BMA IS:

– Glimpse at the property from the real estate broker’s perspective

– Tool for diligent analysis of the subject property ‘s condition, competition and future marketability by real estate broker

– Broker’s estimate and report on the subject property’s:

• Most likely sales price “as is” and “with repairs and improvements”

• Most likely net price “as is” and “with repairs and improvements” assuming a reasonable marketing time (typically no more than 120 days)

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Defining the BMA

• Three-page form supplying such information as:

– Likely financing– Property details– Local market/recent sales

• Generally supplied to employer and/or RMC representative and often to the transferring employee

• Helps provide tangible evidence to support best marketing strategy for the property

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In Summary…

• The BMA is a tool for enabling the real estate broker to analyze and report on:

– Subject property’s condition– Other listed properties with which the subject must

compete– Recently sold properties– Marketability of subject property

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For More Information…

• Copies are available via ERC®’s “forms portal” at http://www.erc.org/esolutions/esolutions.shtml

• More in-depth training tools on completing and using the BMA are available at www.erc.org (see the “resource center” section under the “PERC-USATM” tab, or call ERC ® at 202 857 0857)