The Importance of a good CMA

By
Real Estate Agent with RE/MAX Four Corners

I attended a class at my office yesterday on CMA's. I have been to a couple of different classes on this subject but felt that a reminder would not hurt.

It was taught by a very experienced agent who is also a licensed appraiser.

I was reminded about the importance of the CMA when both listing a property and helping a buyer decide on what price to offer.

Some of the things shared were what is a CMA not. It is not the average price per square foot for the neighborhood. It is not the tax appraisal amount. It is the value that you calculate based on all the plus and minus features of the subject property compared to other similar properties that have sold in the area.

She shared a scenario where a buyer's agent brought a low offer. Using her CMA evidence she was able(with the clients permission) to share why the counter offer was fair and to get the contract agreed.

If you do not know how to do a full CMA I suggest you talk to your broker or mentor and ask for training.

This is a skill that can benefit all your clients, buyers and sellers.

Sue

 

Posted by

Sue Riley Realtor, GRI

Prudential Texas Properties

Serving Collin and Grayson Counties and surrounding area.

Offering great customer service for all of your real estate needs

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Rainmaker
89,042
Raj Dhaliwal
(MyAbbotsford.Com)
Century 21 Coastal Realty Ltd.
You have to sell the price of a home 3 times. 1 to the seller 2 to the buyers agent and 3 to the buyer. A good CMA is great tool to convince all the of em.
June 22, 2007 08:46 PM
Rainmaker
99,704
Paul Viau
High Shots Photographaphy , My Home Exposure
High Shots Photography , My Home Exposure

A good CMA is worth alot especially if you can say you were personally in the comparable properties. You need to own the market to do well. There is only so far you can go flying by the seat of your pants.

You will run into extra special problems when trying to appraise a place - and there have been no sales in the last 6 months that compare. You need to weight the replacement cost approach .

 

June 22, 2007 09:24 PM
Rainer
18,725
Sue Riley
GRI
RE/MAX Four Corners

Raj, You are right, that is a good approach

Paul, I agree previewing and touring homes is important to know the market. Sometimes it can be tough if there are no obvious comparables. In this market because prices have been pretty flat for a long time we can easily go back more than 6 months, I realise that is not the same in all areas of the country.

June 23, 2007 09:29 AM
Rainer
5,747
Elaine Liz-Ramirez
MAI
ERA Advantage Realty

 

Sue,

I am a state-certified general appraiser (FL) and am active real estate agent.  In the present market, it's tough to do a CMA; its tough to do a residential appraisal, because of scarcity of comps.

I had three sales within three months in Feb. all in a tight range with an offer at 10% below the already reasonable price.  Moral to story is buyer went and found something else!

Outside of looking at CLOSED sales.  I can't say how important it is to look at Active and Expireds!  I also look at pendings and contingents!  In this market, there CAN NOT BE TOO MUCH INFORMATION.  We have to be armed and ready!

GREAT POST! 

June 23, 2007 09:55 AM
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Rainer
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Sue Riley

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