CMA, Day 5

DAY 5

Friday’s Objective: Learn about the different presentation tools.

TOOLS

  • CMA tools are for presentation not value creation.
  • The CMA tools out there don’t actually do the work. You have to do the work. Please do not use those tools to generate estimated values.
  • The best approach is one of education and understanding. Unless you know the area like the back of your hand you will need to immerse yourself into that neighborhood through data to start understanding the property values.

ASSIGNMENT – Explore the different tools:

  • Cloud CMA
  • Toolkit CMA
  • CMA Wizard
  • RPR

 

Action Items:

  1. Pick a residential single-family subject property:
    • conduct a CMA
    • experiment with each of the CMA tools

 

Resources:

 


ADDITIONAL RESOURCES:

These graphs are found in ToolKitCMA

Here are 3 slides to help you in your presentation:

  1. The first graph shows that if the subject property is under or overpriced by just a little bit it can greatly increase or decrease the number of buyers that actually see that property. If they don’t see it they can’t make an offer. If they do see it and reject it because of price, it may be hard to get them to come back (if they haven’t already bought a house) by the time you drop the price enough for them to find it.
  2. The second graph shows that if you get in the downward spiral of chasing price the seller ultimately ends up netting less than had they started at the true market value. If it takes them 4 to 12 weeks to find the market value sweet spot they would net as much as 3.6% than had it been priced right to begin with.
  3. The third graph shows that the most activity a listing will get always occurs within the first 2 to 2.5 weeks that it’s on the market. If you aren’t priced right or the condition doesn’t match the price and this time passes it becomes very difficult to sell the property. Different areas have an average days on market that also factors into this equation so don’t get discouraged too fast.