If you are a novice realtor, you may feel like there are infinite logistical and legal hoops to jump through just to sell a home–or even put in on the market. All of this paperwork and dozens of phone calls feel devastating to your productivity. How are you ever supposed tackle the job of being a realtor? Well, if you are not using CMA software for realtors yet, you should be.
CMA, or comparative market analysis, is a software that realtors use to determine what the price of a home should be. Knowing how to use CMA tools is essential to being successful as a realtor: it is estimated that we will see 80% of residential growth in suburban communities, and the median sale of a new home in the United States as of February of this year was almost $330,000. You can’t afford to not use CMA reports to find out how the cost of the home you are trying to sell should compare to others like it.
For maximum accuracy and productivity, you should use two different functions of the comparative market analysis: how much other homes similar and geographically proximal to the one you are selling have gone for, or how much other homes similar and geographically proximal are on the market for. Finding the average of this amount will give you a base to put the price of your home on.
The fine tuning of the price happens when you analyze the features of the home that make it more or less valuable than the market median. For example, you may build on the price if your home has hardwood floors, built in surround sound speakers, and a swimming pool, while the homes that contributed to your median didn’t. Reversely, if you are selling a home that is not brand new, you may have to take away from the price if the inspection report exposes issues with the house’s structure, such as: mold, cracks in the foundation, flood damage, bats in the attic, an old roof, or an extremely outdated kitchen. The current homeowner could choose to fix the issues on their own and keep the house at the market median price, or it can be taken off the offer for the house.
The comparative market analysis is infinitely easier than ball parking an offer or immediately accepting what the current homeowner wants to list the house for. It increases your productivity by keeping the prices fair and accurate, and keeping you up to date on the competitive rates of the real estate market.
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