YOUR EBOOK TITLE THE NEW CMA: COMPETITIVE NOT COMPARATIVE
Let’s dive into each of these steps and their sub-steps to better understand the full process. As you read through this, you’ll notice I mention graphs, but don’t show them here. In the next section we’ll walk through an example of the New CMA with a property, show all the graphs and discuss them. As I mentioned earlier, we at Focus 1st a created software that generates these graphs to make this process efficient and easy to show customers, these are the graphs I’ll show you. We believe it’s easier to learn with visuals and showing in better than telling, and by the end hopefully you will too. STEP 1.1: Know the Subject Property STEP 1.2: Know the Wide Area Appreciation Trend STEP 1.3: Understand the Neighborhood Trends & Their Implications LOREM IPSUM STEP 1: UNDERSTAND THE AREA PATTERNS
Knowing the Subject Property and its key details is vital when it comes to pricing. Surprisingly this simple step is where the most agents misstep. The first thing you must do is look at the property records or previous MLS sheet to understand the basic details about the house. You must at minimum know:
- Address - Lot Size - Condition
- Neighborhood - Year Built - Features
- Total Square Feet - # of Bedrooms - Area Amenities
- Finished Square Feet - # of Bathrooms - School District
It’s also immensely valuable to look at a satellite image on Google Maps so you can know how the house sits on the lot, where the lot sits (i.e. cul-de-sac, corner lot), as well as where any major dividing features in the neighborhood are; such as greenbelts, parks, or major roadways.
Once you know the area, we can look at two sets of area trend graphs in order to understand the market and set both our and our customers expectations.
STEP 1.1: Know the Subject Property STEP 1.2: Know the Wide Area Appreciation Trend STEP 1.3: Understand the Neighborhood Trends & Their Implications LOREM IPSUM STEP 1: UNDERSTAND THE AREA PATTERNS
The first pattern we look at is FHFA appreciation data. The US Government’s Federal Housing and Finance Administration (FHFA) collects data to show how home values have changed over the years. Their data is collected by Metropolitan Statistical Areas (MSAs.) This is a great perspective that is a fairly accurate value
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