February 10 2014
A CMA is one of the primary reports you'll be creating for your seller clients. In many ways, it will be the foundation for the rest of your work together. And comps are the foundation of your CMA. Needless to say, choosing the right comps is an essential skill to master. If you have been selling real estate for years, you have the CMA perfected. But if you are new, this article may provide you some quick suggestions to increase your acumen.
Some people choose to create CMAs using their MLS system. However accurate, this solution isn't the most aesthetically appealing. Moreover, the worst possible listing presentation would have you showing up with the exact same MLS CMA report presentation as another agent.
Therefore, many agents are choosing to use premium CMA tools that also offer more attractive and customized visuals. Most of these CMA tools give you the option to choose your own comps or will automatically select comps for you.
Let's walk through an example. I'm going to use Cloud CMA because they're quite popular and I'm most familiar with their solution. The image below demonstrates the two options for choosing comps:
Whether they are automatically chosen by your CMA tool or whether you choose them yourself, you'll need to understand the factors that make for a great comp. This will help you weed out bad comps when they are automatically chosen and make excellent selections when you choose comps yourself.
Obviously, the following are not hard-and-fast rules. Choosing comps is often a tightrope walk juggling multiple factors. However, these are a good place to start.
Remember, the purpose of a CMA is not only to provide data that supports your pricing opinion – but a book that helps you tell a story. Be sure to practice your story telling as you walk though the CMA. Be sure to inject information that you know about the area, or about the homes that are in your CMA. Remember, the #1 reason why consumers choose you is because of your local expertise. Let it shine!
What did I miss? Tell me what you find most helpful in picking comps.