Or, what is my pyramid worth on today’s market?

Presentation on theme: "Or, what is my pyramid worth on today’s market?"— Presentation transcript:

1 Or, what is my pyramid worth on today’s market?
CMA's Or, what is my pyramid worth on today’s market? Notes: _____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

2 The Comparative Market Analysis
How defined How important How to make money using one Notes: _____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ How to create one

3 How Defined What it is ---- What it is not ---
An indication of current market value based on an analysis of recent sold’s and current market activity of like properties It’s a combination of art and science Why? Science because we usually have lots of good data Art because real estate is, by definition unique and a ‘subjective’ or emotional decision for the buyer In our ‘upscale’ market we have some challenges that can require going beyond available comps / require ‘judgement’ What it is not --- Not an ‘appraisal’ per se e.g. Can’t take it to the bank Notes: _____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

4 How Important Probably the single most important tool and service we have to offer Why? Home equity is typically the single biggest asset What are the downsides of inaccuracy? Overpriced becomes ‘market worn’ and sells for less Under-priced leaves money on the table Overcoming the temptation to tell people what they want to hear The pro’s get seller ‘buy-in’ to price to sell -- HOW? The pro’s build their careers on success and success buys you not only opportunity but respect for your opinions If you’re new-- you must make a compelling case Notes: _____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

5 How to Create the CMA First step ---
Get recorded historical info including tax rec.; plat map can use the MLS & office maps or Win2Data for both Get as much historical information as possible model upgrades-- pool; landscaping; granite; etc. views or lot premium / lot orientation e.g. N/S exposure what were the factors that caused the ‘buying decision’ Review-- noting subdivision; square footage; year built; how long owned; what they paid; bdrms; baths; pool; etc. Notes: _____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

6 How to Create the CMA- the search for hidden truth . . .
Next --- MLS search for comparables Stay within subdivision, if possible Go back 1 year, with special attention to the most recent Pull current listed and pending comps Look for a ‘rationale’ that justifies the differences e.g. view; premium lot; model; upgrades; condition; orientation; etc. keyword search use plat map to identify orientations; lot size Reading not only features, but remarks can help (maybe) Use a variety of searches e.g. wildcard; with / without pool; etc. Notes: _____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

7 How to Create the CMA- A ‘weighty’ responsibility
Then --- Determine absorption rate AR = # sold (past 12 months) / 12 (correction) Current listed / AR = # of month supply Drive by solds If necessary, talk to the listing agent Preview availables Again, look for the relative pluses and minuses that could affect buyer demand Note variables (3-car v.s. 2 -car garage; etc) The CMA report is a fast way to get $ per sq. ft. Be aware of the cost difference of multi-story vs. single story upgrades need to be identified and accounted for Notes: _____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

8 How to Create the CMA- A ‘weighty’ responsibility
Analysis Job is to get the most money in shortest period of time By “synthesizing” (merging) all the info, you can almost always get a fairly narrow range (3 to 5%) Note: Properties that sell, tend to sell within 3-4% of listed price Learn to make “weigh” what improvements are worth on a ‘resale’ basis e.g. will an 80 K lot premium net 80 K What does it mean to be over-improved? Principle of progression & regression . . . If the target market is reduced what happens to the marketing time? Notes: _____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

9 How to make Money w/ CMA v.s the career listing
Getting the opportunity the dog and pony show --- preferably in color present the CMA in the context of a ‘marketing plan’ using Toolkit CMA / Marketing Plan (template) Positioning The key to your ‘marketing success’ is in positioning the subject property to be “the next one sold” in that market “Wholesale v.s. retail” (when dealing with FSBO’s) The myth that “we can always come down” Agent feedback visa vi office tours & feedback from previews and showings Some suggest monthly CMA updates Notes: _____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________