YOUR EBOOK TITLE THE NEW CMA: COMPETITIVE NOT COMPARATIVE
We look at this to see the trend and set the right expectations mainly to help us know whether we are looking at an appreciating area or one which hasn’t seen a ton of growth in recent years. This can let us know if we are on the right track and is a great tone setter as we begin to talk about appreciation with customers.
A quick note: Canada has similar data based on sales, and at Focus 1st we created graphs for that data as well.
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 Next we zoom in and look at the Neighborhood Patterns to predict the experience and we will use them later to show us two of the market economic factors: timing and desirability . These patterns can help with buyers and sellers and are very easy to explain when it comes to what to expect in the home sales process. The Neighborhood Patterns consist of the Odds of Selling, the Time to Close and the Buying Pattern graphs.
The Odds of Selling Graph
What it is: A stacked bar chart that shows proportionally the number of homes that have sold, are currently for sale, under contract and withdrew in the last 12 Months, and an Odds of Selling percentage number for the area. What it tells us: The Odds of Selling graph tells us specifically the likelihood that the home you’re pricing will sell. The implication of this number is desirability to buyers. The higher an odds number is, the more likely it is to sell because of the buyers desire to be in that area. This desirability is a major economic factor we will use to home in our positioning.
Time to Close Graph
What it is: A scatterplot graph that shows the number of days a home took to close from the day it was listed, as well as an Average Days to Close line that shows the neighborhood’s trend.
What it tells us: The main takeaway from this graph is how long we should expect a home sale to take. This will help you with your pricing in two major ways. First, it will help us understand timing by combining it with the Buying Pattern graph. Second, it will help us know when to re-position the home if we aren’t seeing the activity needed to sell before the Average Days to Close line.
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