Do you know what both dominating buyer’s agents and listing agents have in common? Exactly! They both know how to do real estate CMA accurately. As a real estate agent, you need to take a couple of things into consideration before getting the For Sale sign set up in the front yard and house price is the most important one. Real estate CMA is one of the most valuable services you can offer to your clients, helping you set yourself apart from the competition.
“How much is my home worth?” Unrealistic price is one of the main reasons many real estate listings do not sell during the given timeframes. While sellers wish to make the most money possible out of their homes, buyers wish to get the best deal on their purchases. What’s your strategy, as a listing agent, to pinpoint the highest price for your listings while still remaining competitive? How can you, as a buyer’s agent, assure your clients that the home they are going to buy is worth the price?
Savvy agents understand that offering CMA service can have a competitive advantage for their business. It’s a common way for agents to show their values during the home buying/selling process. But how can one ensure the accuracy of the results? Go through the following steps to tighten up your real estate CMA process.
How to Do a CMA to Encourage Repeat Business?
Learn Everything about the Listing
By everything, I mean everything! Data collection is the first step and the most crucial part of your real estate CMA process. For an accurate real estate CMA result, you need to gather as much information as you can on the listing. Real estate CMA is all about comparing a property with similar properties. The more precise the data you collect, the more valid the comparison you make. To do a CMA, at a minimum, you must know the details of the location, total square footage, the number of bedrooms, acreage, year built, the renovations carried out on the property, the interior finishes, and any unusual or unique features.
Identify Comparable Sales and Listings in the Area
Once you have gathered all the information you need, go to the next step – examining the recent comparable sales and the properties which are currently listed for sale in the immediate area. As mentioned earlier, CMA is all about making comparisons. Now you can compare your listing’s specifications and asking price to those of other similar properties. Find at least five recently sold homes or currently listed properties in MLS that match or are close to your listing (look at the previous step to see what details you should pay attention to when selecting comparable properties).
If your listing is very typical of the listings in your city, finding close comparable properties will not be difficult at all. In small cities, however, you will probably have a hard time finding something that fits your exact criteria. In that case, you can search with a range that is close to your listing while having a little wiggle room. For example, if your listing is 2,000 sq ft, the properties you pick can be between 1,800 sq. ft and 2,200 sq. ft. Since the results obtained will be a little bigger or smaller, you need to make some adjustments to find your listing’s real price.
The offering price of the recently sold and currently listed properties in the area is the most important information you can get from a CMA. In addition, by doing a CMA you can find out how long those properties have been on the market, whether or not they are currently under contract, and if so, how long it took to get there. A convenient way to get this information is to reach out to the agent who has the listings of those properties.
Have an Eye on the Micro Market
Though obtaining listing data is the most important part of doing a real estate CMA, as an agent, you must be informed about what’s happening in the neighborhood as well. Is there major road construction? Is a new pool under construction? Has a new café opened recently? Remember not only the overall trend of the market but also the micro-market trends determine the final price of a listing.
Good job! Now it’s time to put all the information gathered together into a final result. Start with the property you want to list. Take all the factors influencing the price into consideration. Then, do the same with comparable sales and listings. Finally, apply your filter for micro market trends. Now arrange the numbers obtained from lowest to highest and conduct a CMA.
A listing should be on the market for as little time as possible. Otherwise, It gets harder and harder to sell it. One thing you can learn from running a CMA is the types of properties selling. This helps you to make the necessary changes prior to listing.
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