The HOW TO Guide of Listing Presentations
Instructor: John Henderson
CMA – A buyer’s perspective
There is a second part to creating a rock solid CMA. Home sellers only look at one home – theirs. Buyers on the other hand want to look at every property available. Think of this as presenting the buyer’s viewpoint. When buyers call real estate agents, they usually identify the school district or area of town they are interested in and the number of bedrooms, baths and a few important amenities they want. Home sellers need to be aware of all the competition that buyers are seeing and compare their house to that information too. What price are the sellers considering to offer their house for sale? Does it fit within an average range or is it higher or lower? Is it far above the average price of competing homes for sale in the broader area? How many competing homes are available?
Knowing this information can help sellers position their property more competitively.
Some property valuations are easy. If you are comparing homes in an area of like-kind houses, you can predict with ease your client’s house value. However, many homes are not that easy to value. You may need to slice information several ways. Is there extra acreage? Is there water frontage? By calculating each of those amenities independently, its easier to construct a value range based on each element.