No Broke Months For Salespeople - What You Need to Know When Dealing with CMAs

Episode Date: February 7, 2024

What You Need to Know When Dealing with CMAs  Real Estate Coach Dan Rochon from No Broke Months for Real Estate Agents shares Insights about everything you need to know about Comparative Market Analysis.Dan explores the impact of Comparative Market Analysis (CMA) in real estate, shedding light on how CMAs can refine pricing strategies, inform crucial decisions, and lead to successful transactions in real estate.Learn about the Comparative Market analysis in the latest No Broke Months for Real Estate Agents episode. To find out more about Dan Rochon and the CPI Community, you can check these links:Website: No Broke MonthsPodcast: No Broke Months for Salespeople PodcastInstagram: @donrochonxFacebook: Dan RochonLinkedIn: Dan Rochon

You can rely on valuation tools to help you, but manually reviewing the data will always be best. So the best way to estimate the value of a property is through doing manual research. So listen to what the seller thinks about it, view the automated valuation sites, and complete your independent study. So if it's a balanced market, you can go back six months for the listings. And that's another reason why we want to understand where the market's going in, you know, in the trend. Welcome to the No Broke Months for Real Estate Agents podcast. Working as a real estate agent can be incredibly rewarding and fulfilling, but it can also be frustrating if you aren't making the money you deserve.

So if you're ready to end the stressful cycle of working hard for no results, then get started with a proven step-by-step system so that every month is No Broke Months. My name is Dan Roshan. I'm the host of the No Broke Months podcast, which is a show for real estate agents to help you have no broke months. Thanks for joining me. Enjoy the show. comparative market analysis in real estate, shedding light on how CMAs can refine pricing strategies, inform crucial decisions, and lead to successful transactions in real estate. Learn about the comparative market analysis in the latest No Broke Months for Real Estate Agents episode. All right, let's go ahead and let's move on to the CMA. All right, you can rely on valuation tools to help you. Man manually reviewing the data will always be best. The best way to estimate the value of a property is through doing manual research.

How long should it take you to value a property? When pricing a property, take your time to research and prepare appropriately. Then, as you develop your skill, you will increase your efficiency. Listen to what the seller thinks about it, view the automated valuation sites, and complete your independent study. When you have done your research more extensively, if the prices between what you think and what the seller shares with you vary by greater than three to five percent, you know you have a problem you need to research more deeply. What data should you consider when pricing a home? When possible, select three active or pending properties and three that have recently sold, and choose properties in the same community.

Notice I'm saying properties in this section, not homes anymore. If you cannot do this, select properties within eight blocks in an urban area and within one mile in a suburban environment and 10 miles in a rural area. What types of homes do you compare? compare. You compare the like-type homes to the like-type homes, and the best CMA will consider homes in the same type of condition. You want to match a townhouse with a townhouse, not a single family. And I've had assistants in the past give me CMAs where it's like a single family home for $700,000, a condominium for $350,000, And, you know, it just doesn't make sense. So you want to make sure that you're comparing the same types of homes to the same types of homes, okay? A three bedroom to a three bedroom when possible. You're going to recognize that the age of the home,

you want to have similar types of ages. You want to find the tax record because you're going to use that to do a yes set later on when you meet with them. And then you also have the National Association of Realtors has the NARPR. You want to look how long ago should the property that you're comparing to have been sold. So in a balanced market, you could choose properties that have sold up to 180 days. In a changing market, you can consider homes that have sold 90 days ago or sooner. So if it's a balanced market, you can go back six months for the listings. And that's another reason why we want to understand where the market's going in the trend. Should you look at Zillow? Absolutely. Where can you get the market

statistics? I get mine from SmartCharts. You may have a different resource for yourself. I have a question. Sure. When you're doing the CMAs, you know, here I've been taught that, you know, when comparing like kind that if it's, if it's not a brick house, then you shouldn't compare it with other homes that are not brick. Yeah, I would say that's true if possible though. So ideally it's going to look like identical, like a twin. Okay. That's going to be ideal. But what I find is that sometimes it's hard to do that. Now there may be communities that it's not hard to do that in, you know, like some of the easier comps would be like a condominium, for example, like those are pretty cookie. Those are pretty cookie cutter, right? The only differences would be, did they replace their stove or not?

Or did they replace the floors? All righty. Have the best day of your life. Be grateful. Make good choices. Go help somebody. And go find a listing. I'll see you guys tomorrow.

Bye. Thanks so much for listening to the No Broke Months podcast today. Until the next show, I invite for you to be grateful, make good choices, help someone, have the best day of your life, and go find a listing.