Market Value Analysis Training Module

Transcription

1 Market Value Analysis

2 Overview This guide is meant to offer general direction for completing the NuCompass Mobility Market Value Analysis, (MVA). It is not a line by line instruction guide as many of the questions are self explanatory; it does however offer guidance for completing questions that may require additional explanation or may be interpreted differently. If at any time you have questions relative to completion of the MVA or are concerned about sensitive information you may have to convey, please reach out to the NuCompass Consultant. General Instructions The Report is designed to allow you to complete a comprehensive analysis of the subject property, evaluating condition, recent comparable sales and current competitive listings and overall property marketability based on current real estate conditions. From the analysis you will estimate a Suggested List Price and Most Likely Net Sales Price based on a marketing time not to exceed 120 days unless the average marketing time is less. If the average market time for comparable sales is 90 days, the property should be evaluated to sell within a 90 day time frame. The MVA is utilized by NuCompass Mobility in all 50 states so please pay special attention to regional influences and differences. We will most likely never see the property so it is important to accurately and in detail convey all aspects of the property. The MVA should be completed in its entirety and submitted within 48 hours of your appointment with the transferee. The report must include a detailed Marketing Plan and interior and exterior photos of the subject property. Neighborhood photos if of value should also be included. If necessary, please submit additional addendums and or supplemental information. Please be certain to note the transferee s name and file number on any additional submittals. If any problematic or Red Flag issues arise as a result of the inspection, please call the NuCompass Relocation Consultant immediately

3 How to Complete the MVA Report Section and Field Instructions The following provides guidance on how to fill out each section of the MVA report. Specific definitions of key data fields are provided to assist you in completing the report. Section I: Property Information Market Area Price Range - This data point should include the price range of similar style, size and neighborhood properties that our subject property will be in direct competition with. The Market Area Price Range may include the immediate geographic neighborhood as well as a broader area where buyers would look for comparable properties... Property Values - This value is determined by considering a 6-month time frame and based on sold and competing properties in the Market Area Price Range of the subject property. Are values Increasing, Stable or Decreasing? Special attention should be given to competing properties as they are an indicator of what is occurring in the marketplace today. Number of Competing Properties in Price Range This represents the actual number of competing listings in the Market Area Price Range. Average Days on Market Includes number of days from listing to contract for current competing listings in the Market Area Price Range of the subject property. Availability of Competing Listings - Based on our direct competition within the Market Area Price Range. What is current listing availability? Shortage - In Balance Oversupply? Calculate the Months of Inventory Calculate the absorption rate for active listings within the Market Area Price Range. The calculation is the number of active listings divided by the number of sales per month for the past 6 months. Section II: Real Estate Company Information Please provide your complete real estate company information.

4 Section III: Property Inspection Information Use subject property specific information based on visual inspection and public records. Location Type Urban refers to location within a city. Suburban refers to a community located close to an urban area and Rural indicates a great distance from the nearest urban area. Lot Size Provide a detailed explanation as needed to clearly describe the lot size and characteristics. Section IV: Property Condition and Disclosure Information Based on your visual inspection of the property, please check all conditions that apply and describe the situation in detail. Keep in mind you are providing information on a property we will most likely never see, so detailed explanations are critical. Though you are not performing a property inspection, we do expect you to call out visible areas of concern that warrant further review or inspection. If at any time there is sensitive information to convey or if you believe a Red Flag situation exists please call the NuCompass Consultant for direction Repairs Please indicate interior and exterior repairs including estimates based on your professional opinion and knowledge of the marketplace that are necessary to enhance the subject property s marketability and to put it in top showing condition. Inspections and Disclosures Please indicate and explain in detail all required inspections and disclosures. Section V: Financing Information Please provide information relative to likely buyer financing and how it may impact the marketability of the subject property. Please identify and explain in detail any issues that may affect the ability of a prospective buyer to secure financing. Section VI: Subject Marketing Profile Describe in detail the positive and negatives of the subject property and their influence on marketability. Describe in detail your plan for positioning the positives and creating solutions for overcoming the negatives. Indicate concessions/incentives being offered that may adversely affect the subject property s value or marketability.

5 Section VII: Market Activity Indicate the key features of the subject property including a detailed narrative description. The description should include the location of the subject property, proximity to employment centers, proximity within the neighborhood, and any other critical property features or information that is not covered in the key feature grid. Comments for comparable sales and competing listings should not restate the key feature differentiators but instead offer additional supporting narrative explaining in detail the property differentiators. Section VIII: Subject Property Evaluation Please provide a Suggested List Price to facilitate a sale within a 120 day marketing period and a Most Likely Net Sales Price after considering repairs, improvements and concessions.

6 Other Requirements Property Marketing Plan Provide a detailed marketing plan which will achieve a sale within a 120 day period. At a minimum, your plan should include the following: On line Advertising and Website Exposure Planned Media Campaign Broker Open House and Tour Schedule Pubic Open House Schedule Professional Photography and Virtual Tour Creative Marketing Ideas Submission Be sure to attach supporting information or documents as needed... Please keep in mind the transferee and or our corporate client may have an opportunity to view your MVA so please make certain it is professionally prepared and all sections are complete and accurate.