CMA Steps

CMA’s and How To Figure The Price *Please know that by practicing, you will get better, Please do not wait until you have a Seller or Buyer to try this process. Copyright msr technology 2004,2005

Things to Know Before Doing a CMA: *Property Condition -Poor, avg., great *Age *Location (Corner Lot, Busy Street) *Concerns (Owners, Location) *Motivation of Client *Timing Issues (When are they moving) *Repairs (What needs to be done? What has to be Done? Allowance or fix it now?) *Basements (What value? Condition? Finished Out?) **Review Camp 443 Session 10, Book 2

Where do you go to get your property information: 1) Get tax information form www.lubbockcad.org 2) Navica Past History of Area. No further back then 6 months. You want the solds, actives, under contracts and expired homes.

www.lubbockcad.org Search by name or address 1) Get the “Datasheet” and print it for your records and ours.

Tax ID number, Legal description and Owners Name and Assessment History Sales History The MA is the sq. ft. you want. Only Heated and cooled space MA- Main Area Sq. Ft. and year built.

Follow the next 3 screens. 1-Login to Navica, 2-Click Search, 3-Click Residential, Then Enter Criteria 3) Sq. Ft. Range plus and minus 200 sq. ft. 4) Age Range must be set as well, 1960-1970 A 5-10 year range should be ok. 4) Then hit submit. Then view as “Keller Williams CMA” in Results Box 5) Your Results will still need be filtered to the property that most likely fits your subject property. (“Search Option”- “Filter Selected”)

Active PPF Hi There are 2 areas you have to look at, Active and Sold Price Per Foot. Sold PPF Home values are not just determined Avg. 10 Best Hi by price foot, however it is one way 9 to get closer to the actual value. 8 7 Once you have the ranges on the left 6 filled out, then take the property and Low .Avg 5 Avg. view it through a buyers eyes, On a 4 scale of 1-10, 10 being best how 3 does it rate? Based on the rating 2 what is the Sold PPF? Now Low 1 Worst multiply that the sq. ft. of the living area of the home. Price Range: to Sold PPF X Sq. Ft. = The Base Value Active PPF X Sq. Ft. = The Competition

Note: You will hear these from Sellers, be ready! Pricing Misconceptions It is very important to price your property at competitive market value at the signing of the listing agreement. Historically, your first offer is usually your best offer. WHAT WHAT WHAT WHAT COST ANOTHER YOUR YOU YOU TO REBUILD AGENT NEIGHBOR NEED WANT TODAY SAYS SAYS Buyers & Sellers Determine Value The value of your property is determined by what a BUYER is willing to pay and a SELLER is willing to accept in today’s market. Buyers make their pricing decision based on comparing your property to other property SOLD in your area.

The value that you arrive at is your opinion. There my be items that need to be adjusted on your subject property or the properties that you chose. If some of the homes that you compared the subject home to are vacant then go see them to see how they compare to the subject home. You will give the seller a price range that you believe that it would sale for in today’s market. Please refrain from giving a single price. Here is a script: “Based on the market conditions in Lubbock I have researched your area and I believe your home should sale in a range from _________________ and ________________. You have had time to see the Market Report (CMA), What price would like me to start marketing your home at? (Agent wait for the answer, be quiet, He who talks first looses) Please remind the seller of their motivation or timing that you learned from them earlier. Make sure you find it out before you discuss the price.

*Be careful not to put to much criteria. It 13 could result in no homes found. Enter your search criteria.

See the toolkitcma 1 Save your search training guide. to use for CMA.

Quick Stats For Ech Status Act, U/C, Sold) 1) Once you filter the search to the properties you want, then select all and go to search options and choose “View Selected Quick Stats” You can print this if you want to or… 2) Go to Search Option then “Quick Comparison” Put your clients information in and then hit next. Then print report. This will give you a basic CMA for your clients.

Use the saved search when using Toolkit CMA to produce your CMA. http://toolkitcma.com/ Export your properties to your program. You can now print your business presentation from the Toolkit CMA program. See the KW Local Intranet for further instructions on how to use CMA tool kit with Navica. (Links Section) or click the link below and log in and open the training guide. http://kwmc238.webexone.com/r.asp?a=12&id=3844

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CMA Steps

by mratcliffe1 on Apr 22, 2007

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CMA Steps — Presentation Transcript