{"id":568,"date":"2019-03-05T03:10:58","date_gmt":"2019-03-05T03:10:58","guid":{"rendered":"https:\/\/www.realestateleads.ca\/blog\/?p=568"},"modified":"2023-09-27T00:28:37","modified_gmt":"2023-09-27T00:28:37","slug":"the-basics-of-putting-together-a-solid-comparative-market-analysis","status":"publish","type":"post","link":"https:\/\/www.realestateleads.ca\/blog\/the-basics-of-putting-together-a-solid-comparative-market-analysis\/","title":{"rendered":"The Basics of Putting Together a Solid Comparative Market Analysis"},"content":{"rendered":"
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\"\"<\/a>If you\u2019re new realtor here in Canada you\u2019ll quickly learn that offering a free market analysis for prospective clients and their homes is pretty much standard practice for every real estate agent. They\u2019re a show of good faith and a nice little bonus for homeowners who are looking for an experience and knowledgeable realtor who is an expert with the local market. That\u2019s an opportunity for you, and being able to put together a solid CMA for clients is definitely important. The same can be said for ANYTHING that helps you become ever more solidly cemented as a good realtor who\u2019s known as a good choice.<\/p>\n

Client prospecting is a multi-approach need for all realtors, not just those who are new to the business. Here at Real Estate Leads<\/a>, our online real estate lead generation system is a real benefit for those who understand what the power of the Internet is capable of in regard to identifying people who are very sincere about buying or selling a home in the near future. Nearly everyone who\u2019s signed up so far has come to regard it as money well spent, and there\u2019s plenty of room left to get onboard.<\/p>\n

But back to the topic here, what are the basics of what goes into putting together a CMA for homeowners you\u2019d like to eventually see become your clients? Let\u2019s discuss that now.<\/p>\n

Plain and Simple Comparisons <\/strong><\/h3>\n

The purpose of a CMA from the realtor\u2019s perspective is twofold; to share valuable information with the homeowner, and equally as prominently to hopefully make them into clients down the road. From the homeowners perspective, however, it\u2019s much simpler. They\u2019d like to know what the value of their home is in comparison to those seen with other similar homes in the neighbourhood that have sold for certain prices.<\/p>\n

Accessing sold property records allows the realtor to select recently sold properties that are similar to the subject property and in the same geographical area. Comparing these properties is only just a start, as you need to adjust for feature differences, and the realtor should always make explicitly clear that this CMA is only an estimate<\/em> of the value seen for the subject property. Keep in mind that the best realtors will always be just fine with doing a second different CMA for a seller or a buyer.<\/p>\n

A second CMA would include comparisons to currently listed similar properties in the area. The same process would be used, but using only currently listed properties. This is smart because it allows an assessment of the current competition, and may highlight increases or decreases in the estimate based on the sold properties. And of course you can be certain your initiative in providing a second CMA will put you in a very good light with the homeowners.<\/p>\n

Quality of Comparable Selections<\/strong><\/h3>\n

A crucial part of any CMA’s accuracy and one where you really need to do your homework to make sure you\u2019re in the right with it is determining market value based on a selection of the best<\/em> comparable properties<\/u>. It\u2019s true that choosing even one different comparable out of three or four homes taken into consideration can result in very different valuations. You want to have a CMA based on the best comparable properties, and for two reasons.<\/p>\n

First, it ensure that there\u2019s very little chance the homeowners will be disappointed when finding that there home has been overvalued in the CMA. Second, the lower value that will come with may end up leading the home to be listed at a price that eventually is exceed in the sale price due to competition amongst buyers who see more value there.<\/p>\n

How that will appeal to homeowners needs no explanation!<\/p>\n

Considerations When Choosing Comparable Properties <\/strong><\/h3>\n