RE62RC10: Comparative Market Analysis (CMA)

List Your Way to Success!

Kate Lanagan MacGregor508-728-3648

www.kate.realtor

Today’s Objective

As a result of today’s class we will be able to:❑ Create your value proposition for success❑ Identify the elements of a CMA❑ How to master a listing presentation

❑ Evaluate new technology tools into your listing presentations.

What Has Happened to Our Consumer?

❏ Big Data❏ Expectation of Services Provided❏ Home Sale Options

Today’s seller

“I can list my home myself. What I want from you is to make my life easier!

Take the stress out of my move!”

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How Did that Seller Find YOU?

❏ Company Lead❏ Third Party Lead❏ Referral❏ Personal Sphere of Influence

Zero Moment of Truth

“By the time you meet a person, they have already researched you on social media, googled you, etc.

There is no true live first impression!”

The seven First Impressions

1. Your “about me” on the web (they have probably seen this!)❑ bio/intro/resume❑ Take some time to think about what your

message or ‘brand ‘ is.❑ Have a photo and/or video that support your

authentic brand and have someone proof it. ❑ These should be in your CMA as a resource

Whatsmywebutation.com

2. Your social self- strategic and comprehensive

Your emails should have clean, branded signature that is on all of them.

❑ Are facebook, twitter, linked in, etc a good impression?

❑ People check this as references.❑ Always Google yourself.❑ Why do they care?

Your mobile office

3. Your vehicle. ❑ Is it clean and organized? ❑ Is it part of your brand?

Do your Outsides Match Your Insides?

4. Your appearance.

❏ Plan on running into a client wherever you go.

❏ “If a person is poorly dressed,you notice the clothing: but if they are impeccably dressed, you notice the person.”

New Norms...

❏ Are the clothes you are wearing projecting the message you want to send?

❏ What does your briefcase/bag say?

Attitude, Body Language, Congruence5. Carriage of self. Your “ABC’s”

❑ In face to face communication, people give the most credibility to what they see, next your voice tone, and least to the words they are hearing.

❑ If your words and body language aren’t saying the same thing, people are apt to not believe you.

Shake, Bow, or Hug?❑ 6. Your handshake/ physical greeting❑ When you shake hands, people make

immediate judgement about your character and level of confidence.

❑ Firm, quick and respectful. ❑ Hard, but not too hard. Definitely not too

soft. ❑ Consider the 2 handed handshake, where

you are touching their forearm with your other hand.

.

Gratitude Marketing

7. Your follow up. ❏ Thank you note/small gift. ❏ An unexpected card or gift is one of the

most powerful and unforgettable actions you can take

The Appointment

Present or Listen?

❑ Remember, if you are presenting, it’s about you. If you are listening, it’s about THEM

❑ Your information should answer “Why do they care?”

❑ Attention Span- bullets and images❑ NOT Paragraphs

TeamWork… and imagery

What is a ‘CMA’?

❏ A CMA is an unbiased estimate or opinion of the market value of real property by a real estate licensee who is not a licensed or certified appraiser.

❏ BUT- is it unbiased?

What exactly is a CMA?CMA referenced as (interchangeable terms all in common usage):

❑ Comparative Market Analysis

❑ Competitive Market Analysis

❑ Comparable Market Analysis

Same, But Different!

❏ Broker's Price Opinion (BPO)-usually ordered by lenders

❏ Drive by❏ Interior and neighborhood❏ determine list price❏ -Market Analysis

Opinion of Value generally less detailed

CMA vs Appraisal

❑ The valuation techniques used are similar to the three approaches to value employed by a licensed or certified appraiser.

❑ Appraiser has no vested interest in transaction

CMA vs Appraisal

❑ Appraisals generally hired by lender

❑ Appraisers use Uniform Standards of Professional Appraisal Practices (USAP)

❑ CMA generally used to determine list price

Sales Comparison Approach

❑ Identify properties with the same 'highest and proper use' that have sold recently (usually within the last six months

❑ Excluded would be conveyances such as 'short sales', bankruptcy or foreclosures or sales between relatives, etc.

❑ Must be arms length transaction

Aka Market Approach

❑ Adjustments between subject property and comparables for significant differences such as location, physical characteristics, etc.

❑ Similarities generally should be in the bathrooms, bedrooms, number of rooms, building age, style of house, condition of property, and lot size.

❑ All comparable information should be reconciled and a value should be 'estimated'

We Call Them “Comps”

❑ Beware of our ‘lingo’

❑ Caution about ‘what makes my house better’

❑ Usually 6 month look back

Cost Approach or Replacement Cost Approach ❏ Cost approach is based on the property's

replacement cost.❏ Add together the building and land value

(each computed separately).❏ Estimate the replacement cost of the building

new.❏ Deduct all accrued depreciation from the

replacement cost❏ Add the estimate land value to the

depreciated replacement cost.

Income Approach

❑ Income approach is determined by the amount of net operating income the property will produce over its remaining economic life.

❑ Steps to estimate by Income Approach

❑ Normally commercial/investment

How to Apply Income Approach

❏ Estimate the potential annual gross income.

❏ Adjusted Gross Income - Deduct an allowance for vacancy and collection loss.

❏ Net Operating Income (NOI) Deduct all annual operating expenses of the property from Adjusted Gross Income.

The Listing Presentation Mindset shift: you are a teamMarketing Planner and/or Listing Strategy❑ Secure the Listing Appointment❑ Prepare for the Listing Appointment❑ Deliver the Digital Listing Presentation,❑ Slide by Slide❑ Handling Seller Objections❑ Customize Your Own Digital Listing Presentation

You get the call or lead...

❑ How did they find you?❑ Show appreciation❑ Listen to their ‘why’❑ Give them homework❑ Check town permits❑ Find deeds, etc if they have❑ Send them RPR or report to review❑ Check Remine

Their HomeworkWhile on the phone,

❑ ask the seller to email you ❑ The home’s top selling points- their highlights❑ location❑ open floor plan❑ etc❑ Objections potential buyers may have

❑ What type of buyer would be most interested in their home (retiree, families)

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Your Homework

❑ Take exterior photo~ask them for permission❑ If time, send Thank You note with Pic❑ Visit town hall~(best) online is good too❑ Plot plan❑ Deed❑ field card

You are showing them you care!

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2 Ears 1 Mouth?Listing presentation

❑ Listen to what your seller has to say.❑ Being prepared to roll up your sleeves and helping out

can win a seller’s heart.❑ Do not presume to know what they want

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The Top Listing Presentation Mistakes(and How to Avoid Them) by Bernice Ross, Inman

“Mr. and Mrs. Seller, thank you for the opportunity to discuss the marketing of your property.

If it’s okay with you, let’s make a list now of all the things you have enjoyed about living in this house and this neighborhood.

Making a list will help me build a more effective marketing campaign and better highlight your home’s best features.”

Bernice Ross Script (Inman Article)

“So, what should I put on my list?

As the seller points out the features and shares what they value most, take notes. When they pause, ask:

Bernice Ross Script (Inman Article)

Is there anything else I can add to my list now about what you have enjoyed about living here — something about the neighborhood, perhaps?

Can I add anything about improvements you have made or other things about the lifestyle here?”

GOAL:What is their Heartstring?

❏ Heartstring= main buying motive ❏ What we think-❏ They want most money for their home❏ What we may miss❏ Pride❏ Simplicity❏ Timing

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#Justask!

They don’t care about how much you know until they know how much you care!

Before the Tour: Sit Down ~ Qualify

Take out your tablet and record on spreadsheet/checklist❑ Evernote or drive❑ Review their homework❑ Review your homework❑ -RPR, Remine❑ -deed❑ -plot plan❑ -field card❑ Facts in house

What will this Do?

❑ Show you listen

❑ Show your tech edge

❑ Organize the listing

❑ Help you find that Heartstring!

3 P’s Redefined

The real estate industry has changed from almost every angle. The old 3 Ps of selling a home ... 1. Putting a sign in the yard 2. Posting the property on the MLS, and 3. Praying that it sells quickly

3 P’s have transformed to a modern marketing approach including ... ❑ PREPARATION ❑ PRICE ❑ PROMOTION

Preparation❑ Your lead has surfaced and has the potential

to quickly transition to a profitable listing.

❑ Securing the appointment to present your market expertise gets you to the table, but will it earn you the listing?

❑ The key to landing that listing is to prepare … more thoroughly, more accurately, and more creatively than your competition.

Preparation

❑ Don’t let your prospect get away with just an appointment.

❑ Use this opportunity to capitalize on your uniqueness, if only, leaving the prospect with one key takeaway—that you listen and act.

❑ Homework!

ROCHESTERLet’s take a look at the housing market.

1010

0505

You can edit the numbers in these boxes. Scroll to next pages to view other towns and delete the towns you do not need.

If a town you have is not here just change the background image by right clicking and uploading from your computer.

Price❏ What have they done for improvements? ❏ What would add (or take away) value?❏ The more details you capture about the

property’s condition and enhancements, the more equipped you will be to determine the property’s value using RPR’s Refined Value Tool

❏ You synthesize the data❏ They determine price.

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Promotion

❑ How are you promoting your strategic distinction to them?

❑ RPR Seller’s Report—Beautiful, comprehensive report= Not unique

❑ Digital?

❑ Video?

❑ Book or booklet?

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My 4th P - Personal

Your Company❑ Company❑ Market share❑ Ability to execute❑ “Years “ of

experience❑ Why you chose

them

You❑ Strategic Distinction❑ Brand❑ Resume?❑ Community Expert❑ Community Involvement❑ Participation in ®

Be Careful of “Humble Bragging”

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Objections or questions?

❑ Prehandle~Prepare~Pray❑ Are they simply asking for more information?❑ Price- commission❑ Accompany?❑ Negotiate❑ Dual

#Justask!

You Confuse… You Lose

12

You can edit the number of homes for sale.

❑ There’s no magic bullet when it comes to listing presentations.

❑ LEAVE SPACE FOR LISTENING

❑ At the end of the day, it's about THEM❑ We are in service industry

Biggest Message

#wowthem!

Don't promise what you can't deliver and find at least one "wow" factor opportunity to stand out.

https://youtu.be/gXHZYEDYpeo

https://my.matterport.com/show/?m=H1seqZs4zKX

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Please make a copy of this CMA for yourself. DO NOT save over. Edit property address and contact info.

22 Dupont Dr. Mattapoisett, MA

KATE LANAGAN MACGREGORPrepared for Client Name

T: 508.728.3648 | E: Kate@BoldRealtors.com

To change property image right click on it then select, “replace image”, then “upload from computer.” Will not crop properly if you do not do this.

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12

You can edit the number of homes for sale.

ROCHESTERLet’s take a look at the housing market.

1010

0505

You can edit the numbers in these boxes. Scroll to next pages to view other towns and delete the towns you do not need.

If a town you have is not here just change the background image by right clicking and uploading from your computer.

This page remains the same and does not get edited.

This page remains the same and does not get edited.

This page remains the same and does not get edited.

This page remains the same and does not get edited.

This page remains the same and does not get edited.

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Thank YOU!