YOUR EBOOK TITLE THE NEW CMA: COMPETITIVE NOT COMPARATIVE
**A third non-pricing, yet powerful takeaway from the Time To Close graph is that if you have customers that are perhaps building a home or planning on selling in the future you can answer the question of when do they need to be on the market to match their timeline? While this isn’t necessarily part of pricing, it’s important to note as predicting the customer experience is a major value you can provide.
Buying Pattern Graph
What it is: A column graph that shows the number of homes sold in each month of the year for the last 12 months running.
STEP 2.1: Find Comparable Recently Sold Properties & Market Value Trendline STEP 2.2: Establish Pricing & Competitive Ranges LOREM IPSUM STEP 2: ESTABLISH VALUE BASED ON HISTORICAL TRENDS What it tells us: This graph shows the most active months, meaning more homes sold during that time. This has a direct impact on value as there are more buyers putting in offers and closing on homes, yielding more bidding and higher prices for the sellers. This shows us the timing aspect of pricing. Remember these columns show the closing date. To know what this means for the listing date we use the Average Days to Close line number, from the previous graph, and adjust for that number. This combined informa- tion gives us true timing when it comes to pricing the home. After narrowing in on the neighborhood, the next step in the process is looking at historic value from recent sales. Now this part of the process is probably not going to be new to you because this is the main area where most real estate agents are taught on how to price homes. You look at recent sales and you use that to establish an idea of what the value of the home you’re pricing is and price it accordingly. Now our step for this does have a little bit more nuanced and a little bit more in-depth process than the compare 3 that you’ve seen time and time again. Our process uses five factors to price a home accurately and gives you a trendline to show you where your area or neighborhood tends to sell. It also allows you to look at the special features and amenities that really factor in and can be the deciding factor or deciding special feature that can affect the price significantly. We do this using a thing called a Scattergram, which you’ll see later on in this book. Using this graph you can easily find a Market Value Trendline where homes have been selling. You will then adjust a potential value for your home starting at that trendline and move it up or down based on the commonality you have to other sold properties on the graph. This step in the process is used to establish a base estimate price, but more than anything it will help you find the price range. This step here will look the most alike to your traditional pricing methods, but allows for a better comparison of features than the compare 3 method and uses a true trendline, rather than the price per square foot line.
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