Smart Agents put Analysis back in Comparables Market Analysis

By
Real Estate Agent with Keller Williams Realty 0575737

PaperworkIt has always bothered me in the real estate world that with the mountains and mountains of paperwork to tend to, a little more effort on the Comparables Market Analysis (CMA) is in order. Entirely too many agents throw raw data at a customer on a handful of Actives and Solds and expect the client to figure it out. Some don't even explain what it is used for.

What needs to occur to be a tad more helpful is to show similar properties in square footage, geographic area, pool or no pool, year built, and then determine a "range" of prices that a property could be offered up for sale.

Next, an explanation of the idea that as you raise your asking price less of the buyers will view the property. For example at market value 60% of the buyers will view the property. At 10% above market only 30% of buyers will view the property.

Some basic understanding of what a CMA is for and interpreting it with just a little more analysis would go a long way toward being much more helpful in setting pricing strategy.

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Rainmaker
140,121
Nancy Moeller
Seven Gables Real Estate
Your blog is great Gary. We like to show our sellers first hand the competition so they know what their buyers are seeing. We believe this adds credibility to the numbers. Paper does not paint the picture.
November 23, 2007 09:53 AM
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1,482,266
Gary Woltal
Assoc. Broker Realtor SFR Dallas Ft. Worth
Keller Williams Realty
Nancy: It's amazing you used the word "Competition." That's exactly what I refer my list of Actives as. Some are poor competition with overpriced and poor condition homes while others are attractively priced and in move-in ready shape and are stiff competition. Excellent point.
November 23, 2007 09:56 AM
Rainer
208,738
Marc Grossman
GRI, Greater Orlando Real Estate Broker
Marc It Sold!
I haven't utilized a CMA for many years.  Like I tell my clients I can skew those numbers easily - whether they be up or down.  I do go over the actives, etc.  I do, as Nancy stated above, show them the competition.  And, I do speak to them at length what all this means to them and where they need to be to be successful in having their house not only shown, but sold!
November 23, 2007 10:27 AM
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470,881
Kate Elim
Realtor 540-226-1964, Selling Homes & Land at LA
Dockside Realty

BRAVO Gary...Whatever we do for our customers and clients we should do with thoroughness.  The CMA is only a piece of paper with numbers on it.  The same with the listings.  It's how we help them understand and INTERPRET the information is what is important.  That is why REALLY KNOWING your market is an essential tool.

Kathleen

November 23, 2007 10:40 AM
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Gary Woltal
Assoc. Broker Realtor SFR Dallas Ft. Worth
Keller Williams Realty

Marc: My hat is off to you in not using a CMA. You must be the real local expert and a trusted advisor to your area clients. It's interesting for those newer in the business how the CMA tool is viewed as almost mandatory on listing appointments. I found it very useful but that is the part of me that likes to pay attention to details. It's my information junkie side.

Kathleen: Excellent point that we are the interpreters of the raw information.

November 23, 2007 10:58 AM
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Gary Woltal

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